The United Kingdom’s Minister of State for International Development and Africa, Andrew Mitchell, alongside the UK’s Foreign, Commonwealth and Development Office has announced nearly $10 million in additional funding to the African Development Bank’s programme assisting African countries to strengthen resilience and enhance their response to climate shocks.
The development follows the meeting of the UK officials and the Bank on the sidelines of the COP28 UN climate summit in Dubai.
The financial commitment is £7.4 million ($9.63 million) for the Multi-Donor Trust Fund, Africa Disaster Risk Financing (ADRiFi) programme. ADRiFi helps African countries build capacity to respond to climate change-related weather extremes.
The commitment will bolster sovereign drought insurance protection, with a particular focus on Somalia, over the next three years.
Mitchell commented, “Somalia faces one of the worst humanitarian crises in the world, with the devastating effects of climate change hitting the most vulnerable the hardest. Extreme weather can be catastrophic – and it’s vital that Somalian communities are protected and prepared.
“This long-term approach will help Somalia to better plan and prepare for the risk of drought, part of the commitment by the UK and its partners to build climate resilience across the continent.”
The funding will be used to secure sovereign insurance against severe drought through the African Risk Capacity Group, a partner of the African Development Bank. This structure will facilitate swift pay-outs to Somalia’s government to support vulnerable communities in the event of severe drought.
This contribution supplements a broader commitment from the UK that encompasses nearly £20 million ($25.3 million) in new disaster risk financing commitments to reinforce early warning systems and address climate-related crises.
Dr. Beth Dunford, the Bank’s Vice President for Agriculture, Human and Social Development, said, “The Bank is thrilled to expand our cooperation with the Government of the UK to provide solutions to Africa’s climate change challenges, as well as to meet the Bank’s priority to improve the quality of life for the people of Africa.”
The African Risk Capacity Group will collaborate with Somalia’s government to develop budgeted contingency plans which is a pre-requisite for participation in the African Risk Capacity climate risk insurance pool. This represents a continuation of ADRiFi’s initial one-year of assistance to Somalia.
The United Nations Office for the Coordination of Humanitarian Affairs estimated that 7.8 million people were affected by severe drought in Somalia at its peak in October 2022.
Mohamud Mo’allim, Commissioner of the Somali Disaster Management Agency, added, “The Government of the Federal Republic of Somalia appreciates the Government of the United Kingdom committing more financing to fund insurance premiums, and for being committed to support the Government of Somalia in putting up a sovereign risk capacity to respond to past and future droughts.”
Under the ADRiFi programme, the Bank has invested more than $100 million and supported 15 African countries to access sovereign insurance and financial protection against climate hazards.
