Mozambique has received a $2 million insurance premium for drought protection through the African Development Bank’s Africa Disaster Risk Financing Programme (ADRiFi), marking its third consecutive year of climate risk coverage.
The announcement was made at the 2025 Climate and Disaster Risk Financing Forum held in Maputo from 14-16 October.
Albertina Fruquia Fumane, permanent secretary at Mozambique’s Ministry of Finance, received the ceremonial cheque and described the insurance policy as “a strategic instrument of anticipation that enables the state to protect the most vulnerable, maintain social stability and mitigate the economic impacts of recurring climate shocks.”
Mozambique’s coverage for the 2025–2026 agricultural season is part of ADRiFi’s broader effort to support sovereign risk insurance, improve risk modelling and integrate disaster financing into national policy frameworks.
The AfDB subsidises premiums for participating countries while the African Risk Capacity Group delivers insurance and rapid payouts when disaster thresholds are met.
Donor support comes from the UK, Switzerland, Canada, Norway and the Netherlands through a Multi-Donor Trust Fund.
Andrew Mude, AfDB Lead for De-Risking Agricultural Finance and Climate Resilience, noted that “climate impacts are intensifying across Africa.”
“The Africa Disaster Risk Financing Programme has mobilized over $150 million in support of 16 African nations, safeguarding more than six million people and demonstrating the transformative potential of strategic financial solutions in safeguarding lives and livelihoods.”
The forum, themed “Building Africa’s Resilience through Transformative Climate and Disaster Risk Financing and Insurance,” brought together African leaders, donors and technical experts to strengthen the continent’s financial preparedness against intensifying climate shocks.
Delegates visited drought-affected communities in Magude District, witnessing firsthand how insurance mechanisms deliver timely support to those most impacted.
JN/APA