Dutch Government Funds Africa’S Climate Resilience with US$27 Million

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Dutch Government Funds Africa’S Climate Resilience with US$27 Million
Dutch Government Funds Africa’S Climate Resilience with US$27 Million

Africa-Press – Gambia. ARC Ltd. has secured a $27 million contribution from the Dutch government aimed at bolstering climate resilience across Africa.

The funding will be administered through the African Development Bank’s Africa Disaster Risk Financing Programme (ADRiFi) Multi-Donor Trust Fund, marking the Netherlands as the sixth donor to join this initiative. This support will specifically enhance the accessibility and affordability of parametric insurance and other climate risk management tools across the continent.

Lesley Ndlovu, CEO of ARC Ltd., expressed gratitude for the Netherlands’ contribution, highlighting its pivotal role in reducing the protection gap and facilitating premium support to make parametric insurance more accessible.

Established in 2019, the ADRiFi programme, a collaboration between the African Development Bank and ARC Ltd., aims to expand insurance coverage against climate risks in Africa. Since its inception, the partnership has provided financial protection to over six million individuals, demonstrating significant progress in enhancing the continent’s resilience to climate shocks.

The programme’s success is underscored by robust support from international donors, including the United Kingdom, Switzerland, the United States, Canada, Norway, and now the Netherlands. With the Bank’s investment exceeding $100 million, 16 African countries have accessed sovereign insurance and financial protection against climate hazards.

Parametric insurance, a cornerstone of the initiative, ensures swift payouts based on predefined criteria such as cyclone intensity or rainfall excess, expediting financial assistance to affected communities. This mechanism plays a critical role in mitigating the socioeconomic impacts of natural disasters, particularly among vulnerable populations.

The ongoing efforts of the ADRiFi programme underscore a collective commitment to safeguard African nations against the escalating impacts of climate change, promoting sustainable development across the continent.

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