In a significant announcement during COP28 in Dubai, the African Development Bank Group (AfDB) revealed its strategic plan to introduce a $1 billion insurance facility, designed to safeguard over 40 million farmers across Africa from the adverse impacts of climate change.
Known as the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA), the initiative gained widespread recognition during a dedicated side event at COP28, earning praise from key stakeholders including the World Food Programme (WFP), development agencies, insurance companies, and the private sector.
AfDB President, Dr. Akinwumi Adesina, outlined ACRIFA’s purpose: to mobilize $1 billion through a mix of concessionary financing, high-risk capital, and grants. This financial injection aims to fortify the African insurance industry, providing a robust defense against climate-induced catastrophes and, in turn, encouraging private sector investment in agriculture by mitigating risks.
Highlighting the urgency to support farmers in the face of escalating extreme weather events, Dr. Adesina emphasized the Facility’s role in protecting farmers and countries from weather-related disasters.
Cindy McCain, Executive Director of the World Food Programme, expressed enthusiasm about the growing partnership with AfDB, noting that ACRIFA would play a pivotal role in shielding smallholder farmers, pastoralists, and small businesses from climate shocks.
Insights from key figures, including Ibrahima Diong, United Nations Assistant Secretary-General and Director-General of the African Risk Capacity Group, and Bogolo Kenewendo, Special Advisor to the United Nations Climate Change High-Level Champion, underscored ACRIFA’s potential to enhance investment and resilience in Africa’s agri-food systems.
The subsequent panel discussion, moderated by Dr. Victor Oladokun, Senior Communication and Stakeholder Engagement Advisor to the Bank President, delved into the possibilities offered by large-scale deployment of quality climate risk-related insurance solutions. Michelle Kigari, Head of Government Relations at the One Acre Fund, emphasized the critical role of insurance in building meaningful resilience for Africa’s farmers.
Closing the discussion, Dr. Beth Dunford, AfDB Vice President for Agriculture, Human, and Social Development, underscored the vast market potential for insurance in Africa. She expressed optimism that ACRIFA would serve as a unifying force, connecting key players and extending insurance coverage to reach more of the continent’s most vulnerable populations.
Photo (Move 2 Turkey News)
By: Montel Kamau
Serrari Financial Analyst
12th December, 2023
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