Mozambique Receives $2 Million Insurance Premium for Drought Protection as African Risk Financing Programme Reaches $150 Million Milestone

Mozambique received a $2 million insurance premium 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.

The premium was announced during the 2025 Climate and Disaster Risk Financing Forum (CDRFI), held from October 14 to 16 under the theme "Building Africa's Resilience through Transformative Climate and Disaster Risk Financing and Insurance." The forum was jointly organised by the government of Mozambique and the African Development Bank to advance ADRiFi's disaster risk financing on the continent.

The Africa Disaster Risk Financing Programme (ADRiFi) strengthens country’s financial preparedness against climate shocks by supporting sovereign risk insurance, enhancing risk modelling, and integrating disaster risk financing into national policy frameworks across Africa.

Under 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 the 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 program implementation.

To mark Mozambique’s receipt of premium funds, a ceremonial cheque was presented to Albertina Fruquia Fumane, Permanent Secretary at Mozambique’s Ministry of Finance. She 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.”

The African Development Bank Group’s Lead for De-Risking Agricultural Finance and Climate Resilience Andrew Mude emphasised the urgency of putting climate insurance programs in place: “Climate impacts are intensifying across Africa,” he said. “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.”

Ambassador Elsbeth Akkerman 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.” ADRiFi donors include the United Kingdom, Canada, the Netherlands, Norway, and Switzerland.

Vice-President of the National Institute for Disaster Risk Management and Reduction (INGD), Gabriel Belem Monteiro, the executing agency, 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 program, framed Mozambique’s experience as a model for the continent. “This sends a powerful message to the rest of the continent: when Africa leads with foresight and unity, Africa wins,” Maruping said.

Country Director of the World Food Programme in Mozambique, Ms. Claire Conan, emphasized the urgency of acting early: “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.”

Forum attendees took the time to make a field visit to drought-affected communities in Magude District, Maputo Province, enabling them to observe directly how insurance premiums deliver tangible support to hard hit communities.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

×