MIL-OSI Banking: Mozambique: African Development Bank comes through with climate risk insurance solutions post cyclone

By   /  May 14, 2019  /  Comments Off on MIL-OSI Banking: Mozambique: African Development Bank comes through with climate risk insurance solutions post cyclone

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Source: African Development Bank Group

Following the devastating cyclones, Idai and Kenneth, which hit the central and northern parts of Mozambique, its government requested support from the African Development Bank for long-term assistance on the management of climate disasters.

A high-level mission led by Atsuko Toda, Director of the Department of Agriculture, Finance and Rural Development visited Maputo, Mozambique, from 28th  to 29th of April – the second mission by the Bank to the nation in the same month.

While in Mozambique, the delegation met with the Minister of Finance, Adriano Maleiane and other government institutions such as the Meteorological Institute and the National Disasters Management Institute (INGC). The delegation also met development partners, local banks and financial intermediaries.

“We want to create a coalition of partners that can assist the country to be more resilient to climate change,” Toda said.

During the mission, a funding package of $1 m for emergency aid was officially delivered to INGC through the Ministry of Finance, as a first phase response from the Bank to the Mozambique government. The funds will be used to purchase tents and supplies for homeless in the areas most affected by cyclone Idai.

In the aftermath of the cyclone, the Bank announced a special relief fund of $1.7 million for Mozambique, specifically for the immediate humanitarian relief effort in the worst affected areas. In the second phase, the Bank will set up a response and reconstruction programme, committing up to $100 million for Mozambique, Malawi and Zimbabwe to kick-start economic recovery and rehabilitation.

Speaking at the ceremony, Adriano Maleiane, Minister of Finance, said, “As this ceremony takes place, humanitarian assistance to victims of Cyclone Idai is continuing, while in the north, more specifically, in the province of Cabo Delgado, search and rescue operations for those affected by the Kenneth cyclone, that struck parts of our country last week are ongoing.”

Other support to Mozambique will include technical assistance to the government – in collaboration with the United Nations, the European Union and the World Bank – for the survey of the damage caused by the cyclones, and a resource mobilization effort led by Bank President Akinwumi Adesina. The Bank will also lend support to capacity building in disaster risk management by the African Risk Capacity (ARC) and provide assistance with disaster risk insurance options.

Maleiane said more than 1.5 million people were affected by Idai, most of whom lost their homes completely. In addition to the deaths, the cyclone destroyed over 600 public and private infrastructure such as schools, health facilities and access roads.

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