AfDB Launches $1billion ACRIFA Fund For African Farmers Against Climate Risks
By Faridat Salifu
The African Development Bank (AfDB) recently unveiled an initiative to provide financial support to over 40 million farmers across Africa, offering protection against climate-related risks that impact crop production.
The creation of the $1billion African Climate Risk Insurance Facility for Adaptation (ACRIFA) aims to address the increasing vulnerability of farmers to extreme weather events such as droughts, floods, and pest infestations.
President of AfDB, Akinwumi Adesina, who made this known, recently, emphasized the importance of supporting farmers in the face of climate challenges.
He noted that a significant majority of African farmers currently lack agricultural insurance.
The initiative seeks to provide farmers with concessional loans, high-risk capital, or grants to mitigate the impact of climate shocks on their livelihoods, ultimately enhancing food security and fostering commercial opportunities for the global insurance sector.
“To identify and assist farmers affected by climate shocks, collaborations with key partners such as the World Food Programme (WFP) will be pivotal in providing essential services to clients and gathering data to support the allocation of resources,” Adesina noted.
AfDB Vice President for Agriculture and Human and Social Development, Beth Dunford, also underscored the facility’s potential to mobilize stakeholders and facilitate widespread implementation, with the ultimate goal of reaching a greater number of vulnerable individuals across the continent.
An essential aspect of the initiative is the acquisition of reliable data to accurately allocate resources to individual farmers.
The African Climate Risk Insurance Facility for Adaptation, recently endorsed at the 28th United Nations Climate Conference (COP28) in Dubai, is expected to not only bolster Africa’s agri-food systems but also elevate local insurers and promote collaboration with national and international reinsurers.
In summary, ACRIFA stands as a vital initiative in safeguarding the livelihoods of African farmers against climate risks, with plans to leverage partnerships, data-driven strategies, and global support to strengthen resilience in the agricultural sector.