AfDB approves US$34.8M to boost climate resilience in Zimbabwe and Malawi

ZIMBABWE/ MALAWI – The African Development Bank Group (AfDB) has approved US$34.8 million in grants to enhance the resilience and adaptation of vulnerable communities in Zimbabwe and Malawi to climate disaster risks.

According to a press statement by the AfDB, the board of directors approved the grants to help these two countries bolster their preparedness against climate shocks, including droughts, tropical cyclones, and floods.

Zimbabwe and Malawi are highly vulnerable to such climate hazards, threatening food security and economic stability.

The project builds on the AfDB’s previous successes in the Africa Disaster Risk Financing ADRiFi program, particularly during the 2023/24 El Niño-induced drought, which was the worst in 43 years.

The ADRiFi program aims to improve institutional capacity for climate risk management, increase financial protection against climate disasters, and promote index-based crop insurance to mitigate risks such as droughts and floods.

Over US$45 million was disbursed to affected farmers through African Risk Capacity (ARC), a key partner in the ADRiFi initiative.

This financial support provided crucial food assistance and recovery interventions, enabling communities to rebuild after the devastating drought. Zimbabwe, the epicenter of the drought, saw its cereal production decline by 77%, triggering a national disaster declaration.

Furthermore, the AfDB’s intervention aligns with its “High 5” priorities, specifically “Feed Africa” and “Improve the Quality of Life for the People of Africa.”

It also supports the AfDB’s 10-year strategy (2024-2033) and contributes to the bank’s country strategies for Malawi and Zimbabwe, which prioritize agricultural infrastructure investments and economic diversification.

The AfDB emphasized the need for strengthening disaster risk management systems, enhancing early warning mechanisms, and improving institutional coordination.

The approved funding will support initiatives that promote climate risk insurance, encouraging beneficiaries to invest in climate-resilient livelihoods and save for future insurance premiums.

“Climate risk insurance is expected to lead to behavioral changes among beneficiaries, fostering increased investment in climate-resilient livelihoods or savings for future insurance premiums,” the AfDB noted.  

According to AfDB, by offering insurance pay-outs, the initiative will provide timely financial protection to mitigate the impact of climate-related disasters, preventing households and businesses from sliding into poverty or bankruptcy.

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