Mozambique has received a $2 million parametric insurance payout for drought protection covering the 2025–2026 agricultural season, marking the country’s third consecutive year of coverage under the African Development Bank’s disaster risk financing programme.
Under the Africa Disaster Risk Financing Programme (ADRiFi), the African Development Bank provides financing and subsidises insurance premiums for participating African countries while strengthening their capacity to manage climate risks.
The African Risk Capacity Group (ARC) delivers sovereign risk insurance and rapid payouts when disaster thresholds are triggered, while donor countries including the UK, Switzerland, Canada, Norway, and the Netherlands contribute funding through the Multi-Donor Trust Fund to support programme implementation.
Albertina Fruquia Fumane, Permanent Secretary at Mozambique’s Ministry of Finance, described the country’s risk insurance policies 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.”
Andrew Mude, The African Development Bank Group’s Lead for De-Risking Agricultural Finance and Climate Resilience, said, “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.”
Elsbeth Akkerman, Ambassador of the Netherlands, representing the ADRiFi Multi-Donor Trust Fund donors, said, “Most importantly, it is the government of Mozambique, through the Minister of Finance, that champions of ADRiFi- together with other African governments, the African Development Bank and the African Risk Capacity. It is the African leadership that enables success.”
Gabriel Belem Monteiro, Vice-President of the National Institute for Disaster Risk Management and Reduction (INGD), called the 2025 Climate and Disaster Risk Financing Forum “a strategic opportunity to strengthen capabilities, align policies, and consolidate African leadership in disaster risk management.”
Anthony Mothae Maruping, Board Chairperson of the African Risk Capacity, a partner in the ADRiFi programme, framed Mozambique’s experience as a model for the continent, saying, “This sends a powerful message to the rest of the continent: when Africa leads with foresight and unity, Africa wins.”
Claire Conan, Country Director of the World Food Programme in Mozambique, added, “Parametric insurance is more than a financial instrument—it’s a commitment to proactive action. In a world where resources are increasingly limited, acting early, efficiently, and based on evidence is not just good practice—it is a moral and economic imperative.”
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