Impact of climate change in Africa

Africa faces severe climate challenges, threatening food security, livelihoods and economic growth. Frequent extreme weather events such as droughts, floods and cyclones worsen poverty and economic inequality while straining governments’ resources.

1,695

climate-related disasters in the past 50 years

Droughts

have been the deadliest climate disasters in Africa

Floods

represent 60 percent of all reported natural disasters recorded over the last decades

Cyclones

Cyclone Idai in Mozambique in 2019 was one of the most expensive climate disasters

The frequency of climatic shocks, coupled with slow recovery and limited resources, highlights the need for African states to adopt innovative financing solutions to protect vulnerable populations.

To address this, the African Development Bank launched the Africa Disaster Risk Financing (ADRiFi) Programme in 2018 to strengthen resilience and improve response to climate shocks.

How ADRiFi Works

Through the ADRiFi, the Bank invests funds to assist participating African countries to secure risk insurance policies for their national governments against climate shocks such as droughts and tropical cyclones.

Focus areas

Building capacity of regional member countries to assess climate-related risks and costs

Providing disaster risk financing through climate insurance solutions

Supporting preparedness for climate shocks in regional member countries

The Africa Disaster Risk Financing Programme
Multi-Donor Trust Fund (MDTF)

To accelerate the uptake of proactive risk financing solutions and overcome the challenges posed by constrained fiscal spaces and debt distress in many regional member countries, the Bank established the ADRiFi Programme Multi-Donor Trust Fund (MDTF) in 2021.

ADRiFi MDTF Donors

The program has led to an increase in the number of countries embracing ex-ante climate risk management in their planning, with more of them allocating domestic budgets towards climate risk financing. As participation in the regional risk pool grows, its sustainability is strengthened, and governments are taking greater ownership of climate risk financing efforts.

MDTF Governance Structure

Boards of Directors

of the Bank and the Fund

Approves the ADRiFi MDTF, including changes to its founding document.

MDTF Oversight Committee (OC)

Approves policy, the annual workplan and budget, country eligibility and disbursement requests.

MDTF Technical Review Committee (TRC)

Chaired by the AHFR Director

Reviews and recommends approval of the workplan, country applications and disbursement requests.

MDTF Coordination Unit

Supervised by AHFR Director · led by ADRiFi Programme Coordinator

Day-to-day management: initial project screening and eligibility review.

The Bank partnered with the African Risk Capacity (ARC) Group in the implementation of the ADRiFi Programme. Both institutions share the same goal of protecting countries and populations at risk from climate-related disasters through insurance cover.

Feature

Netherlands bolsters Africa’s climate resilience with $27 million disaster financing pledge to the African Development Bank

Representatives from the Kingdom of the Netherlands and the African Development Bank Group last year met at the Bank’s Annual Meetings 2024 to discuss the Dutch government’s $27 million pledge to the ADRiFi Multi-Donor Trust Fund.

Feature

When Climate Shocks in Hit Hardest, African Development Bank Climate Risk Insurance Mobilises Africa’s Development Financing at Scale to Build Resilience

Magude District, in Mozambique’s Maputo Province, has long lived under the shadow of drought. Families face dwindling harvests, dry rivers, and long daily walks in search of water. Season after season, drought struck harder, leaving communities vulnerable and uncertain about tomorrow.

Feature

Case study - Madagascar

Madagascar, the fourth largest island in the world, is susceptible to a number of disasters, including disease outbreaks, drought, floods, pest infestations, sandstorms and tropical cyclones that disrupt livelihoods. Southern Madagascar is particularly susceptible to recurrent drought conditions that lead to poor harvests and decreased livestock productivity

Vision 2030

We envision a future Africa where at least 10 million vulnerable people, especially women and children, are insured annually against climate disaster risks, and wider communitie s are equipped to be more resilient in the face of climate change.

Impact of climate change in Africa

1,695

Droughts

Floods

Cyclones

How ADRiFi Works

Focus areas

The Africa Disaster Risk Financing Programme
Multi-Donor Trust Fund (MDTF)

ADRiFi MDTF Donors

MDTF Governance Structure

Boards of Directors

MDTF Oversight Committee (OC)

MDTF Technical Review Committee (TRC)

MDTF Coordination Unit

Feature

Netherlands bolsters Africa’s climate resilience with $27 million disaster financing pledge to the African Development Bank

Feature

When Climate Shocks in Hit Hardest, African Development Bank Climate Risk Insurance Mobilises Africa’s Development Financing at Scale to Build Resilience

Feature

Case study - Madagascar

Vision 2030

Email us: adrifi@afdb.org

Policies

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Address

Impact of climate change in Africa

1,695

Droughts

Floods

Cyclones

How ADRiFi Works

Focus areas

The Africa Disaster Risk Financing ProgrammeMulti-Donor Trust Fund (MDTF)

ADRiFi MDTF Donors

MDTF Governance Structure

Boards of Directors

MDTF Oversight Committee (OC)

MDTF Technical Review Committee (TRC)

MDTF Coordination Unit

Feature

Netherlands bolsters Africa’s climate resilience with $27 million disaster financing pledge to the African Development Bank

Feature

When Climate Shocks in Hit Hardest, African Development Bank Climate Risk Insurance Mobilises Africa’s Development Financing at Scale to Build Resilience

Feature

Case study - Madagascar

Vision 2030

Email us: adrifi@afdb.org

The Africa Disaster Risk Financing Programme
Multi-Donor Trust Fund (MDTF)