Mozambique has secured a two million dollar insurance premium from the African Development Bank (AfDB) to protect against drought during the 2025 to 2026 farming season under the Africa Disaster Risk Financing programme.
The funding was announced during the 2025 Climate and Disaster Risk Financing Forum (CDRFI) in Maputo, marking Mozambique’s third consecutive year of coverage under the Bank’s Africa Disaster Risk Financing (ADRiFi) programme.
The forum, themed Building Africa’s Resilience through Transformative Climate and Disaster Risk Financing and Insurance, was jointly organized by the Government of Mozambique and AfDB to advance climate risk preparedness and insurance solutions across the continent.
The ADRiFi initiative supports African countries in strengthening financial resilience to climate shocks through sovereign risk insurance, risk modeling, and policy integration. The African Risk Capacity Group (ARC) delivers insurance coverage and rapid payouts when disasters strike, while donor partners including the United Kingdom, Switzerland, Canada, Norway, and the Netherlands contribute to a multi donor trust fund.
Albertina Fruquia Fumane, Permanent Secretary at Mozambique’s Ministry of Finance, described the policy as a strategic instrument of anticipation that protects vulnerable populations and stabilizes the economy during climate crises.
AfDB’s Lead for De Risking Agricultural Finance and Climate Resilience Andrew Mude stated that the ADRiFi programme has mobilized over 150 million dollars, benefitting 16 African countries and safeguarding more than six million people from climate related shocks.
Anthony Mothae Maruping, Chairperson of ARC, praised Mozambique’s model as an example for the continent. Ambassador Elsbeth Akkerman of the Netherlands also commended Mozambique’s leadership in building resilience through homegrown solutions.
Forum participants visited drought affected communities in Magude District, Maputo Province, to observe how insurance mechanisms provide timely relief to farmers and households.
