Mozambique: African Development Bank comes through with climate risk insurance solutions post cyclone

Mozambique: African Development Bank comes through with climate risk insurance solutions post cyclone

Following the devastating cyclones, Idai and Kenneth, which hit the central and northern parts of Mozambique, its government requested support from the African Development Bank for long-term assistance on the management of climate disasters.

A high-level mission led by Atsuko Toda, Director of the Department of Agriculture, Finance and Rural Development visited Maputo, Mozambique, from 28th to 29th of April – the second mission by the Bank to the nation in the same month.

“We want to create a coalition of partners that can assist the country to be more resilient to climate change,” Toda said.

During the mission, a funding package of $1 m for emergency aid was officially delivered to INGC through the Ministry of Finance, as a first phase response from the Bank to the Mozambique government. The funds will be used to purchase tents and supplies for the homeless in the areas most affected by cyclone Idai.

In the aftermath of the cyclone, the Bank announced a special relief fund of $1.7 million for Mozambique, specifically for the immediate humanitarian relief effort in the worst affected areas. In the second phase, the Bank will set up a response and reconstruction programme, committing up to $100 million for Mozambique, Malawi and Zimbabwe to kick-start economic recovery and rehabilitation.

Other support to Mozambique will include technical assistance to the government – in collaboration with the United Nations, the European Union and the World Bank – for the survey of the damage caused by the cyclones, and a resource mobilization effort led by Bank President Akinwumi Adesina. The Bank will also lend support to capacity building in disaster risk management by the African Risk Capacity (ARC) and provide assistance with disaster risk insurance options.

Original source: AfDB
Published on 13 May 2019