Mozambique granted a $2 million insurance premium for drought protection under the African Development Bank’s disaster risk financing program. The climate disaster funding marks its third consecutive year of coverage under the AFDB initiative.
The payment comes as the Africa Disaster Risk Financing Programme (ADRiFi) announced the mobilization of over $150 million in climate resilience funding across the continent. Formalized during the 2025 Climate and Disaster Risk Financing Forum in Mozambique, the premium insurance covers the 2025-2026 agricultural season.
Moreover, the program represents a strategic shift from reactive disaster response to proactive financial protection. By using parametric insurance, it triggers automatic payouts when specific climate thresholds are met.
AFDB officials highlighted the program’s expanding impact, noting ADRiFi has now safeguarded more than 6 million people across 16 African nations.
The program operates through a collaborative model:
- AFDB provides premium financing and subsidies
- The African Risk Capacity Group delivers the insurance coverage
- Donor nations including the United Kingdom, Switzerland, Canada, Norway, and the Netherlands contribute through a Multi-Donor Trust Fund.
Mozambican finance official Albertina Fruquia Fumane described the insurance as “a strategic instrument of anticipation that enables the state to protect the most vulnerable.” The country’s repeated participation demonstrates growing African leadership in climate risk management, with officials framing Mozambique’s experience as a model for other vulnerable nations.
The milestone underscores the critical role of pre-arranged financing in building climate resilience, particularly for agricultural economies facing increasing drought frequency and severity.
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