Mozambique has received a $2 million insurance premium from the African Development Bank (AfDB) to protect the country against drought during the 2025–2026 farming season.
The funding, announced during the 2025 Climate and Disaster Risk Financing Forum (CDRFI) in Maputo, marks 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 organised by the Government of Mozambique and the African Development Bank to advance climate risk preparedness and insurance solutions across the continent.
The ADRiFi initiative supports African countries to strengthen financial resilience to climate shocks through sovereign risk insurance, risk modelling, and policy integration. The African Risk Capacity Group (ARC) delivers insurance coverage and rapid payouts when disasters strike, while donor partners including the UK, Switzerland, Canada, Norway, and the Netherlands contribute to a multi-donor trust fund that supports implementation.
Speaking at the event, 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 stabilises the economy during climate crises.
AfDB’s Lead for De-Risking Agricultural Finance and Climate Resilience, Andrew Mude, said the ADRiFi programme has so far mobilised over $150 million, benefitting 16 African countries and safeguarding more than six million people from climate-related shocks.
“The Africa Disaster Risk Financing Programme demonstrates the transformative power of financial innovation in protecting lives and livelihoods,” he said.
Anthony Mothae Maruping, Chairperson of the African Risk Capacity, praised Mozambique’s model as an example for the continent, saying, “When Africa leads with foresight and unity, Africa wins.”
Donor representative Ambassador Elsbeth Akkerman of the Netherlands also commended Mozambique’s leadership, noting that “African governments are driving real progress in building resilience through homegrown solutions.”
Forum participants also visited drought-affected communities in Magude District, Maputo Province, to see how insurance mechanisms provide timely relief to farmers and local households.
The ADRiFi programme, jointly implemented by the AfDB and ARC, aims to expand disaster risk insurance and financial preparedness across Africa in response to the growing impacts of climate change.
