AXA Climate, part of global insurer AXA Group, London-based broker Howden, and Togo-based non-governmental organisation Pionniers en Action pour le Développement Intégré à l’Environnement (PADIE), will be implementing the project for Togo’s fourth-largest city, Kloto 1, and key flood hot spots in the capital city Lomé – Golfe 1 and Golfe 7.
The innovative flood resilience project to support pre-arranged disaster financing and flood adaptation solutions for cities in Togo has been approved and will be launched in three municipalities.
The project features a parametric insurance mechanism that will cover three cities and over 700,000 inhabitants, according to AXA Climate.
The announcement of the approval of the InsuResilience Solutions Fund (ISF) co-funding for the Togo project was made on Saturday, December 2nd, at the Togo Pavilion at COP28, in the presence of the three mayors. The project is set to launch in early 2024.
The ISF co-funding will help with the implementation of an index-based flood insurance solution, which will enhance the financial capacity of municipalities in the event of a flood disaster and activate a predefined contingency plan to support disaster response and assist vulnerable affected populations.
Dr Annette Detken, Head of the InsuResilience Solutions Fund, commented: “Climate risk insurance, particularly when part of comprehensive disaster risk management planning, is a decisive tool for supporting the resilience of vulnerable populations.”
Karina Whalley, Head of Public Sector at AXA Climate, added: “As a committed climate insurer, the science of adaptation is really part of our DNA. We are honoured to help these cities be better prepared for future floods.”
Emile Atigaku, Executive Director of PADIE, explained how co-designing the project with local authorities was central to the consortium’s approach: “A series of workshops will be organized with municipal policymakers, technical experts and the community to identify precisely the priority adaptation measures and contingency actions that insurance payouts could finance.”
The project has been driven by Winny Dogbatse, Mayor of Kloto 1 and President of the Convention of Sub-Saharan African Mayors for Climate (CoM-SSA), which counts 367 African cities as members.
Dogbatse said: “I am delighted to act for the resilience of Kloto 1 and to promote this innovative project in Africa and beyond at COP28.”
The Lomé communes Golfe 1 and Golfe 7 are bordered by the Atlantic Ocean. Joseph Koamy Gomado, mayor of Golfe 1</h2, which has a population of 350,000, commented: “Our risk of flood is threefold: it may be pluvial, fluvial and coastal. It is critical to better measure where the risk comes from, in order to deduce priority adaptation measures.”
Kove Kossi, Deputy Mayor in charge of urban planning and the environment in Golfe 7 with 250,000 inhabitants, noted: “It’s time to act. Our residents are asking us for solutions against flooding. Insurance is a promising option.”
Howden will provide co-financing of $100,000 for insurance premiums for the first year of the scheme. Stuart Martin, in charge of parametric insurance in Howden’s risk and resilience department, said: “We are pleased to accelerate the resilience of the three cities through this contribution.”
Eliot Pernet, project lead at AXA Climate, concluded: “We are fortunate to have a strong relationship with the three cities, which will allow this project to be locally led and ambitious.”
The consortium is also supported by Lehady Soglo, former mayor of Cotonou, who has critical experience in building resilience in flood-prone West African cities.
