Mozambique has received a $2 million insurance premium for drought protection for the 2025–2026 agricultural season, marking its third consecutive year of coverage under the African Development Bank’s (AfDB) Africa Disaster Risk Financing (ADRiFi) Programme. The announcement was made during the 2025 Climate and Disaster Risk Financing Forum, held in Maputo from October 14 to 16, under the theme “Building Africa’s Resilience through Transformative Climate and Disaster Risk Financing and Insurance.” The event, jointly organized by the AfDB and the Government of Mozambique, showcased the country’s growing commitment to financial preparedness against climate shocks.
The ADRiFi Programme aims to strengthen African nations’ ability to manage and respond to climate-related risks by providing sovereign risk insurance, supporting risk modeling, and integrating disaster financing into national policy frameworks. Through ADRiFi, the African Development Bank finances and subsidizes insurance premiums for participating countries, while the African Risk Capacity (ARC) Group delivers the insurance coverage and rapid payouts when drought or disaster thresholds are triggered. The program is further supported by donor countries including the United Kingdom, Canada, the Netherlands, Norway, and Switzerland through the ADRiFi Multi-Donor Trust Fund.
During the forum, a symbolic cheque presentation was made to Albertina Fruquia Fumane, Permanent Secretary at Mozambique’s Ministry of Finance, who emphasized that the risk insurance policy serves as a key strategic instrument to protect vulnerable communities, maintain social stability, and mitigate the economic consequences of recurring climate disasters. Her remarks underscored the country’s commitment to proactive risk management and financial resilience.
Andrew Mude, the AfDB’s Lead for De-Risking Agricultural Finance and Climate Resilience, highlighted that climate impacts are intensifying across Africa and reaffirmed ADRiFi’s role in protecting lives and livelihoods. He noted that the programme has so far mobilized over $150 million, supporting 16 African nations and safeguarding more than six million people. Ambassador Elsbeth Akkerman of the Netherlands, representing ADRiFi’s donor partners, praised Mozambique’s leadership and the collective African effort that has made the initiative successful.
Gabriel Belem Monteiro, Vice-President of Mozambique’s National Institute for Disaster Risk Management and Reduction (INGD), described the forum as a critical opportunity to strengthen institutional capabilities and align national policies with continental disaster risk management goals. Meanwhile, Anthony Mothae Maruping, Chairperson of the ARC Board, commended Mozambique’s proactive approach, calling it a model for other African nations and proof that united African leadership can yield transformative results.
World Food Programme Country Director Claire Conan also highlighted the importance of early action, noting that parametric insurance goes beyond being a financial tool—it represents a commitment to timely and efficient crisis response. Forum participants concluded their discussions with a field visit to drought-affected communities in Magude District, Maputo Province, where they witnessed firsthand how climate insurance premiums help vulnerable populations cope with and recover from severe climate shocks.
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