The African Development Bank Group has approved $30.25 million to support a groundbreaking initiative aimed at enhancing climate resilience and securing agricultural livelihoods in Benin. The project will assist 150,000 smallholder farmers, a vital workforce in a country where agriculture employs the majority but remains vulnerable to erratic climate patterns.
The Alibori and Atakora regions face heightened vulnerability, with one in four farmers experiencing food insecurity—significantly above the national average. These areas are also affected by regional instability in the Sahel, including displacement and trade disruptions caused by border closures with Niger.
If no action is taken, climate change is expected to reduce cotton production by 22 percent and maize yields by 6.3 percent, leading to potential economic losses of more than 201 billion CFA francs. The Bank’s initiative is designed to avert these losses by introducing risk management strategies and supporting community resilience.
The program backs the Beninese government’s efforts to establish a national agricultural insurance system. It will deploy a range of climate risk transfer mechanisms, including sovereign insurance through the African Risk Capacity and micro-insurance products for smallholder farmers. These measures will help farmers access credit and boost investments by improving their risk profiles.
Alongside insurance tools, the project will also strengthen disaster response institutions, install early warning systems with agrometeorological tools, and promote climate-smart farming practices to build long-term resilience.
At least 30 percent of the program’s beneficiaries will be women and another 30 percent youth. The project also includes measures to support the integration of displaced populations, aiming to strengthen social cohesion in host communities.
The funding includes $20 million from the Transition Support Facility, $5 million from the African Development Fund, $3 million from the ADRiFi multi-donor trust fund, and $2.44 million in contributions from the Beninese government.
Aligned with Benin’s National Development and Adaptation Plans, the initiative advances the country’s goals for agricultural transformation and climate resilience through innovative finance and strategic partnerships.
Collaboration with the World Food Programme, World Bank, and bilateral partners such as Switzerland and Luxembourg ensures that the initiative has broad support for expanding agricultural insurance and fostering sustainable development.
This funding provides a pathway to secure harvests, stable livelihoods, and a more resilient future for farming families in northern Benin. The African Development Bank Group emphasizes its ongoing commitment to agricultural innovation and climate adaptation across Africa to safeguard vulnerable populations and ensure regional stability.
