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Business Writer
The African Development Bank (AfDB) has approved grants of US$34,8 million to enhance resilience and adaptation to climate
disaster risks for vulnerable communities in Malawi and Zimbabwe.
Under the bank’s Africa Disaster Risk Financing (ADRiFi) initiative, the Mitigating Fragility through the Africa Disaster Risk
Financing Programme in southern Africa project will bolster institutional capacity for climate risk preparedness and
management and increase financial protection against climate disaster risks through sovereign climate disaster risk transfer.
It will also promote the adoption of index-based crop insurance to mitigate against drought and other production risks at the
micro-level.
Malawi and Zimbabwe face significant climate hazards such as droughts, tropical cyclones and flooding but lack adequate
mechanisms for climate risk management and adaptation.
Both countries are particularly vulnerable to climate shocks such as drought, flooding and tropical cyclones that contribute to
their fragility. Strengthening disaster risk management, improving early warning systems and enhancing institutional
arrangements are crucial for effective preparedness and resilience in these countries.
Under the project, insurance pay-outs will provide timely and adequate financial protection to mitigate losses incurred from
climate-related disasters, safeguarding households, and businesses from falling into poverty or bankruptcy.
“Climate risk insurance is expected to lead to behavioural changes among beneficiaries, including increased investment in
climate-resilient livelihoods or savings for future insurance premiums,” said AfDB in a statement.
“This project will build on the successes of the ADRiFi programme and the valuable contributions from our partners, which
have significantly enhanced the financial resilience of both Malawi and Zimbabwe.”
During the El Niño-induced drought season of 2024/2025, African Risk Capacity, the bank’s partner on ADRiFi, disbursed over
US$45 million to support affected farmers.
The funding has provided crucial food assistance and recovery interventions, helping communities to rebuild and thrive in the
face of adversity.
The project is aligned with the bank’s High 5 Priorities, especially Feed Africa and Improve the Quality of Life of Africans.
It also aligns with the Bank’s 10-year strategy (2024-2033) and will contribute to the Bank’s Country Strategy for Malawi,
which focuses on supporting economic diversification through investments in agriculture infrastructure and value chains.
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