BEST PRACTICES THROUGH ENGAGEMENT
Lessons Learnt
The implementation of ADRiFi has provided valuable insights and lessons for enhancing the program's value and impact.
ADRiFi Multi-Donor Trust Fund (MDTF) Amendment
The ADRiFi MDTF has been successful in enabling 16 regional member countries to access climate insurance at the sovereign level and in mainstreaming CDRFI in government policies and planning.
To address multiple layers of risk and accelerate the provision of diversified climate insurance products across the continent, it is essential to broaden the Fund’s support to include other eligible players, apart from ARC, in the CDRFI ecosystem. This is to limit the risks encountered through the exclusive arrangement with ARC.
The MDTF to offer multi-year support to countries to reduce the transaction cost of single-year support as previously provided.
Extend the MDTF lifespan to 10 years to enable the Bank to continue supporting the evolving CDRFI ecosystem in Africa and also for greater programmatic flexibility and the ability to implement multi-year support mechanisms.
Evolution: ADRiFi 2.0 (ACRIFA)
The Africa Climate Risk Insurance Facility for Adaptation represents the next phase in the evolution of ADRiFi. It is designed to take climate risk insurance solutions to the next level by mobilizing significant resources and engaging the private sector.
After years of implementation, the lessons learnt from ADRiFi inform the evolution into ADRiFi 2.0 – ACRIFA in the following ways:
Ex-ante risk financing is crucial for enhancing countries' financial resilience, enabling rapid support to vulnerable populations during climate disasters.
Capacity building for national disaster risk financing strategies is essential for better understanding and use of climate insurance, supporting a stronger risk management framework.
A holistic approach to insurance is necessary to protect against climate disasters, with products tailored to address risks at micro, meso and macro levels across the agricultural value chain.
Strategic partnerships and private sector investment are vital to mobilizing resources for climate resilience, positioning the insurance industry to play a larger role in climate finance.
Collaborative resource mobilization by ADRiFi and its partners demonstrates a model for expanding climate and disaster risk financing solutions across Africa.
These insights have shaped the creation of ACRIFA, which will build on ADRiFi's achievements to advance climate risk management across Africa.