Mozambique Secures $2 Million Drought Insurance as Africa’s Climate Risk Fund Tops $150 Million
Mozambique has received a $2 million drought insurance premium for the 2025–2026 agricultural season, reinforcing its preparedness against climate shocks under the Africa Disaster Risk Financing (ADRiFi) Programme. This marks the country’s third consecutive year of participation in the initiative led by the African Development Bank (AfDB).
The announcement was made during the 2025 Climate and Disaster Risk Financing Forum (CDRFI), held in Maputo from 14–16 October under the theme “Building Africa’s Resilience through Transformative Climate and Disaster Risk Financing and Insurance.” The event was jointly organised by the Government of Mozambique and the AfDB to strengthen regional disaster preparedness and climate resilience.
The ADRiFi Programme supports African nations by providing sovereign risk insurance, improving risk modelling, and integrating disaster financing into national policies. Through the programme, the African Development Bank subsidises insurance premiums, while the African Risk Capacity (ARC) Group delivers sovereign insurance and rapid payouts when climate thresholds are triggered. The initiative is also supported by donor countries including the United Kingdom, Switzerland, Canada, Norway, and the Netherlands, through the Multi-Donor Trust Fund.
At a ceremonial presentation, Albertina Fruquia Fumane, Permanent Secretary at Mozambique’s Ministry of Finance, received the symbolic cheque, describing the insurance coverage 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.”
Andrew Mude, the AfDB’s Lead for De-Risking Agricultural Finance and Climate Resilience, highlighted the growing urgency of climate preparedness: “Climate impacts are intensifying across Africa. The ADRiFi Programme has mobilised over $150 million to support 16 African nations, safeguarding more than six million people and proving the power of strategic financial solutions in protecting lives and livelihoods.”
Representing the ADRiFi Multi-Donor Trust Fund, Ambassador Elsbeth Akkerman of the Netherlands praised Mozambique’s leadership, noting: “It is the government of Mozambique, together with other African governments, the African Development Bank, and the African Risk Capacity, that drives ADRiFi’s success. This is African leadership in action.”
Gabriel Belem Monteiro, Vice-President of Mozambique’s National Institute for Disaster Risk Management and Reduction (INGD), said the forum provided a strategic platform to strengthen capabilities and align policies across the continent.
Meanwhile, Anthony Mothae Maruping, Chairperson of the ARC Board, described Mozambique’s achievement as “a powerful message to the rest of Africa: when the continent leads with foresight and unity, it wins.”
Claire Conan, Country Director of the World Food Programme (WFP) in Mozambique, highlighted the moral and economic importance of early action: “Parametric insurance is not just a financial instrument, it’s a commitment to proactive, evidence-based action. In a world of limited resources, acting early is both good practice and a moral imperative.”
As part of the forum, participants visited drought-affected communities in Magude District, Maputo Province, witnessing how climate insurance mechanisms directly support vulnerable households.
The ADRiFi Programme continues to expand its footprint across Africa, helping countries like Mozambique strengthen resilience, safeguard food security, and protect development gains in the face of intensifying climate risks.
