The Board of Directors of the African Development Bank (AfDB) has approved a 4.8-million-euro grant, representing over 3 billion CFA francs to Niger, for the implementation of its Africa Disaster Risk Management Financing Programme (ADRiFi).
This funding from the resources of the African Development Fund (FAD-15) is technical and institutional support to strengthen Niger’s resilience and response to drought-related disasters, according to a statement on Thursday, 24 September 2020.
The project, which covers a total of 6.9 million euros, equating to more than 4.5 billion CFA francs, will be co-funded by the Bank Group’s concessional rate lending window, as well as the Pan-African Mutual Risk Management (in-kind contribution of approximately 891,000 euros or 0.75 million UA), and the Nigerian Government, which contributed about 1.24 million euros (1.05 million UA).
In Niger, ADRiFi aims to build resilience and response to climate shocks by improving disaster risk management and adaptation to climate change.
To this end, it will provide technical and financial support to the Nigerian Government through two areas; building Niger’s capacity to assess drought risks, prevent drought-related food crises and develop contingency plans and transferring sovereign risk through the purchase of drought risk insurance from the Pan-African Risk Management Mutual, African Risk Capacity (ARC).
“This funding is timely, as Niger is now bearing the brunt of the impacts of climate change, which is always a blow to household incomes, agricultural sector performance, economic growth, and the country’s macroeconomic balances, including the state budget and balance of payments,” the press release quoted the Bank’s Director General for West Africa, Marie-Laure Akin-Olugbade as saying.
Niger, a large West African country in the Sahara Desert, has adopted the use of parametric insurance as an option to prevent and manage the risks of climate-related disasters that can affect vulnerable populations in rural areas. The use of such a risk transfer mechanism ensures the immediate availability of disaster funds to limit the damage, whilst providing the social safety nets necessary to recover the crisis.
In addition, thanks to ADRiFi, the Bank is preserving Niger’s state budget from potential drought shocks, as the country strives to revive its economy.
The ADRiFi Programme to be implemented from 2020 to 2023 in Niger is in line with Niger’s National Food Security and Nutrition and Sustainable Agricultural Development strategy entitled “Initiative: Nigerians Feed Nigerians” (I3N). The strategy aims to achieve the ultimate goal of “Zero Hunger” in Niger. It is also part of the Bank’s Country Strategy Document (DSP) for Niger (2018-2022), and is part of two of the Bank’s five strategic priorities, namely, “feeding Africa” and “improving the quality of life of Africans.”
Niger is the fifth country to be approved under ADRiFi, after The Gambia, Madagascar, Zimbabwe and Mauritania.