Africa Climate Risk Insurance Framework for Adaptation – ACRIFA
The Africa Climate Risk Insurance Framework for Adaptation (ACRIFA) is working to mobilize $1 billion in concessional capital to de-risk investments and expand climate protection through innovative insurance solutions. Partnering with the African insurance ecosystem, ACRIFA is leading the charge to demonstrate and develop insurance as a vital tool to foster climate adaptation, resilience, and sustainable development within Africa’s agricultural sector.
ACRIFA's Business Model Design
ACRIFA's regional risk-sharing model is built on risk pooling principles, broadening the geographic base to diversify country-specific agriculture and climate risks beyond single-country exposure. By forming national agri-insurance consortia that combine insurers' expertise and resources, this model enhances market capacity and collaboration, addressing the traditional limitations of isolated, country-specific insurance. Cross-border risk sharing reduces risk concentration by balancing local risks with 'foreign' ones, thus strengthening the overall portfolio. With regulatory support and a regional lens, grouping East, West, North and Southern Africa, ACRIFA’s model brings resilience to agricultural insurance, paving the way for more accessible, affordable products that sustainably manage climate risk across Africa.
Agri-Insurance Network
The ACRIFA aggregation framework aims to tackle the high costs of acquiring clients and building investment-worthy premium volumes by focusing on specialized agri-food aggregators, like agro-hubs, cooperatives, producer associations, and innovative models (e.g., One Acre Fund, ACRE Africa, EthioChicken).These aggregators serve as strategic entry points for grouping clients and their associated risks.
By empowering primary insurers, ACRIFA envisions a ripple effect that attracts national and continental re-insurers, enhancing demand for reinsurance coverage. Recognizing the value of a supportive operational environment, ACRIFA prioritizes partnerships with ecosystem enablers to strengthen the insurance industry. By collaborating with technical partners to advance data-driven risk assessment, public agencies and financial institutions, ACRIFA seeks to drive private capital into the agri-food sector, focusing on de-risking investments and encouraging sustainable growth.
Solutions
ACRIFA seeks to marshal the collective capacity of the African insurance industry, bolstering investments and significantly enhancing their ability to deliver end-to-end innovative climate insurance solutions.
ACRIFA will:
Leverage and develop Africa’s insurance ecosystem.
Address the client acquisition-aggregation and risk diversification.
Scale insurance product range and reach.
Invest in data, capacity and policy enablers.
Mobilize climate finance.
ACRIFA's strategy is multi-tiered, offering insurance at macro, meso and micro levels.
Agricultural insurance can unlock access to finance, promoting small and micro enterprises growth and climate-adaptive investments.
Covering climate risks serves as both a safety net and a driver of resilience, helping governments, businesses and communities recover more quickly from climate-related events.