At the Conference of Parties (COP28) in Dubai, the African Development Bank Group (AfDBG) presented a groundbreaking initiative—the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA)—aimed at providing insurance coverage to over 40 million farmers across Africa, mitigating the severe impacts of climate change.
With a planned investment of $1 billion, ACRIFA garnered widespread acclaim from the World Food Programme, development agencies, insurance operators, and the private sector. AfDBG President, Dr. Akinwumi Adesina, highlighted the dire situation, noting that over 97% of African farmers lack agricultural insurance, relying on prayer as their only form of risk mitigation.
Adesina emphasized the need to support farmers facing increasing climate-related challenges such as droughts, floods, and pest infestations. ACRIFA seeks to mobilize funds for climate-smart and green technologies, strengthening local insurers and fostering collaboration with national and international reinsurers.
At the COP28 forum, United Nations representatives, including Ibrahima Diong and Bogolo Kenewendo, acknowledged ACRIFA’s potential to enhance investment and resilience in Africa’s agri-food systems. Panelists discussed how large-scale deployment of climate risk-related insurance solutions could bolster food security and create business opportunities for the global insurance sector.
Participants, including Michelle Kigari of One Acre Fund and Hassan Bashir of Takaful Insurance Group, stressed the critical role of insurance in building resilience for Africa’s farmers. Amini AI’s Kate Kallot highlighted the importance of data transparency, while Hope Murera of Zep-Re Academy identified the challenge of obtaining accurate and reliable data for pricing.
African Development Bank, Bridget Gainer from Aon and Beth Dunford, AfDBG Vice President for Agriculture, Human, and Social Development, emphasized collaboration among stakeholders to achieve scale and connect players, making insurance more accessible to vulnerable populations.
However, concerns were raised during a telephone interview with Nigerian farmers, expressing fears of mismanagement and lack of transparency in the allocation of funds. Farmers highlighted the ongoing challenge of corruption in the country, questioning whether the funds would reach those in the agricultural value chain who need them the most.
As the ACRIFA initiative gains traction, its success will depend on transparent implementation and effective collaboration to ensure that the intended beneficiaries, particularly smallholder farmers, receive the support needed to navigate the evolving challenges posed by climate change.
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