AfDB Approves Over $30 Million to Protect Farmers from Climate Shocks, Food Insecurity in Benin

The Board of Directors of the African Development Bank Group  (www.AfDB.org) has approved $30.25 million in financing for a groundbreaking climate protection and agricultural sector resilience program in Benin.

Thanks to this approval, Beninese farmers, particularly those in northern Benin, will no longer have to fear losing their entire harvest during devastating droughts or sudden floods.

This initiative will protect 150,000 smallholder farmers against climate shocks in a country where agriculture employs seven out of ten people but remains at the mercy of an increasingly unpredictable climate. The situation is particularly critical in the departments of Alibori and Atakora, where one in four farmers suffers from food insecurity, well above the national average.

These northern regions face a double burden of climate challenges and spillover effects from Sahel instability, creating additional pressures through forced displacement and border closures with Niger. Climate projections indicate alarming future risks, with cotton production and maize yields expected to drop by 22% and 6.3% respectively, with potential economic losses estimated at approximately 201 billion CFA francs.

"This investment represents our commitment to strengthening climate resilience in Benin's agricultural sector while responding to the urgent needs of vulnerable farming communities," said Robert Masumbuko, African Development Bank Country Representative in Benin. "By introducing innovative risk management tools and strengthening local capacities, we are helping farmers adapt to climate change while preventing conflicts and promoting social cohesion in fragile border areas."

The project strengthens the Beninese government's efforts to establish agricultural insurance, whose pilot phase is managed by Benin's National Fund for Agricultural Development (FNDA).

It introduces innovative climate risk transfer mechanisms, including sovereign insurance coverage against droughts and floods via the African Risk Capacity, and agricultural micro- insurance for smallholders. These tools will improve farmers' risk profiles with financial institutions, facilitating better access to credit and investment opportunities.

Beyond insurance mechanisms, the initiative will strengthen institutional capacities for climate disaster management, deploy early warning systems with agrometeorological equipment, and promote climate-smart agricultural practices. The program specifically targets 30% youth participation and ensures 30% female representation among the 150,000 direct beneficiaries. Furthermore, special attention is given to social cohesion activities to support peaceful integration of displaced populations in host communities.

The financing comes from multiple sources: $20 million from the "prevention" envelope of the Transition Support Facility, $5 million from the African Development Fund, $3 million from the ADRiFi multi-donor trust fund, and approximately $2.44 million in national counterpart contributions for insurance premiums.

The project aligns with Benin's National Development Plan 2018-2025 and its National Adaptation Plan 2022-2027, supporting the country's agricultural transformation objectives while strengthening climate change resilience through innovative instruments such as insurance. Strategic partnerships with the World Food Programme, the World Bank, and bilateral donors such as Swiss and Luxembourg cooperations ensure comprehensive support for sustainable agricultural development, including the establishment of agricultural insurance in Benin.

For Benin's farming families, this financing represents hope for protected harvests, stable incomes, and a safer future for their children. For northern Benin communities, this project is a guarantee of stability and social cohesion in a strategic region of West Africa, and finally, for the Beninese state, the project ensures financial resilience against increasingly recurrent disaster risks.

The African Development Bank Group remains committed to supporting Africa's agricultural transformation through innovative climate adaptation solutions that protect vulnerable communities while promoting sustainable development and regional stability.

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