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Edgar Vhera, Agriculture Specialist Writer
THE African Development Bank Group (AfDB) this week approved US$34, 8 million in grants to enhance resilience and adaptation to climate disaster risks for vulnerable communities in Zimbabwe and Malawi.
This is part of the bank’s Africa Disaster Risk Financing (ADRiFi) initiative, which aims to boost institutional capacity for climate risk preparedness and management, increase financial protection against climate disaster risks (through sovereign climate disaster risk transfer) and promote the adoption of index-based crop insurance to mitigate against drought and other production risks at the micro-level.
A recent press statement by the bank read as follows: “The board of directors of AfDB group has approved grants of US$34 796 402, 40 to vulnerable communities in Zimbabwe and Malawi to enhance their resilience and adaptation to climate disaster risks. Zimbabwe and Malawi face significant climate hazards, such as droughts, tropical cyclones and flooding, but lack adequate mechanisms for climate risk management and adaptation.”
The statement added that both countries were particularly vulnerable to such climate shocks as drought, flooding and tropical cyclones, which 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, added the bank.
As such the climate risk insurance was expected to lead to behavioural changes among beneficiaries such as increased investment in climate-resilient livelihoods or savings for future insurance premiums.
AfDB further indicated that under the project, insurance pay-outs would 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, such as increased investment in climate-resilient livelihoods or savings for future insurance premiums.
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,” read the statement.
AfDB further indicated that during the El Niño-induced drought of 2023/24, over US$45 million was disbursed to support the affected farmers by African Risk Capacity, the bank’s partner on ADRiFi.
This funding has provided crucial food assistance and recovery interventions, helping communities to rebuild and thrive in the face of adversity.
The project is aligned to the bank’s high five priorities especially Feed Africa and Improve the Quality of Life of Africans as well as the bank’s 10-year strategy (2024-2033) and will contribute to the bank’s Country Strategy for Malawi and Zimbabwe, which focusses on supporting economic diversification through investments in agriculture infrastructure and value chains.
The AfDB is Africa’s premier development finance institution, which comprises three distinct entities – the African Development Bank, the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). It is found in 41 African countries with an external office in Japan and contributes to the economic development and the social progress of its 54 regional member states.
The 2023/24 El Nino-induced drought is considered as the worst in 43 years. This has had a significant negative impact on agricultural production and productivity. The El Nino weather affected the entire Southern African region with Zimbabwe appearing to be the epicentre.
The country’s cereal production declined by 77 percent causing a major deficit in both food and feed requirements resulting in the country declaring a state of national disaster. Only 744 271 tonnes were harvested.
Online Reporter