Mozambique obtains $2M drought insurance as Africa’s climate finance hits $150M, boosting resilience against climate challenges.
Mozambique has reinforced its climate resilience with a $2 million drought insurance premium supporting the 2025–2026 agricultural year. This marks the third consecutive year the country has received financial protection through the Africa Disaster Risk Financing Programme (ADRiFi), spearheaded by the African Development Bank. The announcement was made during the 2025 Climate and Disaster Risk Financing Forum (CDRFI), held from 14–16 October in Maputo under the theme “Building Africa’s Resilience through Transformative Climate and Disaster Risk Financing and Insurance.”
Organised in partnership with the Government of Mozambique and the African Development Bank, the event underscored growing momentum to expand financial tools that mitigate the economic effects of climate shocks across the continent. Through ADRiFi, African nations are empowered to anticipate climate events, purchase sovereign risk insurance, and embed disaster financing into national strategies.
The ADRiFi initiative has become a cornerstone of Africa’s fight against escalating climate challenges. It not only offers financial assistance but also enhances data-driven risk modelling and policy integration. The African Development Bank co-finances and subsidises insurance premiums, while the African Risk Capacity Group (ARC) ensures swift payouts once critical thresholds are triggered. Major donors—including the United Kingdom, Switzerland, Canada, Norway, and the Netherlands—contribute through a Multi-Donor Trust Fund that fuels program operations.
During the ceremony, Albertina Fruquia Fumane, Permanent Secretary at the Ministry of Finance, accepted the symbolic cheque, describing risk insurance as a proactive solution that shields vulnerable communities, preserves social stability, and limits the economic fallout from climate-related disasters.
Andrew Mude, the African Development Bank’s Lead for De-Risking Agricultural Finance and Climate Resilience, highlighted the urgency of such measures, noting that the ADRiFi programme has mobilized over $150 million to protect over six million Africans across 16 countries. He called the initiative a powerful financial mechanism for safeguarding both lives and livelihoods in the face of intensifying environmental threats.
Representing donor nations, Ambassador Elsbeth Akkerman of the Netherlands emphasized that national leadership is the core driver of ADRiFi’s success, commending Mozambique and other African governments for championing resilience-building efforts. ADRiFi’s donor coalition—comprising the UK, Canada, Norway, Switzerland, and the Netherlands—continues to stand behind Africa’s strategic adaptation policies.
Gabriel Belem Monteiro, Vice-President of the National Institute for Disaster Risk Management and Reduction (INGD), described the forum as an important platform for strengthening institutional capacity and coordinating resilience frameworks. Similarly, Anthony Mothae Maruping, Board Chairperson of the African Risk Capacity, affirmed that Mozambique’s success illustrates the broader potential of aligned African action, remarking, “When Africa leads with foresight and unity, Africa wins.”
Adding a humanitarian perspective, Claire Conan, Country Director of the World Food Programme in Mozambique, underscored that parametric insurance is not merely a financial strategy but a moral obligation to act early and efficiently in crisis situations.
Forum participants also travelled to Magude District in Maputo Province to meet communities affected by drought. The visit demonstrated how rapid insurance payouts translate into concrete support for families and farmers facing agricultural losses, proving the real-world impact of anticipatory disaster financing.
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