The Board of Directors of the African Development Bank Group has approved a $6 million grant to the African Risk Capacity (ARC) to strengthen disaster preparedness and risk financing efforts across Africa for the 2025–2026 period.
“It will strengthen national institutions’ technical expertise and operational capacities in disaster risk management, including evidence-based risk assessment, early warning systems and training for policymakers and technical experts,” the African Development Bank explained.
The grant, provided through the Bank’s African Disaster Risk Financing Initiative, will help ARC maintain its core capacity-building and disaster risk financing services for the Bank’s regional member countries.
“A key component of the project will enhance countries’ ability to plan and allocate resources for emergencies more efficiently. It will also support the development of stronger institutional frameworks to coordinate rapid and effective responses to natural disasters,” the African Development Bank said.
ARC will reportedly work to expand country participation in its sovereign insurance risk pool through increased engagement and new climate risk insurance products offered to its member states.
Planned activities are said to include high-level advocacy for the ratification of the ARC Treaty, finalisation of its work programmes with participating countries, and facilitation of insurance premium support.
The African Development Bank concluded, “Implementation will cover all ARC member states, with a focus on regions most exposed to droughts, floods, tropical cyclones and epidemics.
“Beneficiaries will include policymakers, technical working groups and civil servants, who will receive targeted assistance in disaster risk quantification, contingency planning, risk financing, women’s inclusion, and monitoring and evaluation.”
The new initiative introduces a non-profit facility that enables governments, communities, and insurers to access climate risk coverage consistent with Islamic principles.
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