Horn of Africa

  1. Home

What are we funding?

 

GRANT AMOUNT

ENDORSEMENT DATE

ACTIVITIES

INSTRUMENTS SUPPORTED

WB PROJECT

US$30 million

January 24, 2022

Creating a financial services package that helps pastoralists layer their risks by using index-based livestock insurance, savings, and payment accounts    
  • Kenya, Somalia, Ethiopia: Micro risk insurance (index-based livestock insurance; sold biannually since 2022) 
     
  • Djibouti: Macro/sovereign risk insurance (placed January 31, 2023–January 31, 2027)
     

De-risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa (P176517)

US$327.5 million (approved on June 21, 2022)

  • Severe droughts exacerbate poverty and conflict in the Horn of Africa, particularly for pastoralists, who are among the region’s poorest groups and among those most affected by climate change.
  • A US$30 million GSFF grant supports a range of financial solutions for pastoralists in four countries whose livelihoods are threatened by drought.
  • A financial services package in Ethiopia, Kenya, and Somalia allows pastoralists to layer their risks: payouts from index-based livestock insurance protect against severe drought, and savings that have been matched by the project are used when there is moderate drought. Since the insurance was placed in 2022, it has paid out more than US$6.3 million.
  • A macro/sovereign insurance product placed in Djibouti in 2023 through ARC Ltd. provides US$2.3 million in coverage yearly against flood and drought. In October 2023, the product was triggered, resulting in a payout of US$231,130.
  • Part of the grant also supports a digital platform that provides regional-level wholesale risk infrastructure services.

 

Useful links