Dakar, July 2024 - The Republic of Senegal, through the Ministry of Finance and Budget, in partnership with the World Bank and the Global Shield Financing Facility (GSFF), with the support of the United States Agency for International Development (USAID), conducted a workshop on July 23, 2024, to publish the results and conclusions of the diagnostic study on climate and disaster risk financing (DRF). The event also marked the start of the national integration process for the GSFF.

The meeting and workshop aimed to: (i) share the conclusions of the assessment of climate risk and disaster financing in the country; (ii) initiate talks to draw up a national strategy in this area; and (iii) start the process of integrating Senegal into the Global Shield against Climate Risk initiative.

The first day was dedicated to the disaster risk financing diagnostic and proposed strategic options for strengthening financial resilience, thus laying the foundations for the development of a national DRF strategy. This analytical work is complemented by technical assistance.

Pierre Xavier Bonneau (Operation Manager, World Bank Group) highlighted, “Climate change could push two million more Senegalese into poverty by mid-century. More than half of the most vulnerable communities to climate change are already on the brink of poverty because of recurrent shocks. The financing needs for climate adaptation is important and align with the magnitude of the impact on human capital Annual average losses and damages related to climate disasters alone are estimated at 100 million dollars in Senegal. Thus, requiring the mobilization of substantial resources and strengthening financial resilience to natural disasters.”

The second day was devoted to the Global Shield Initiative. The Global Shield Initiative aims to increase protection for vulnerable people and countries by providing and facilitating substantially more and better pre-arranged finance against disasters and climate risks. The Global Shield Initiative has three financing vehicles. The Global Shield Financing Facility (GSFF) is the World Bank’s flagship program on climate and disaster risk finance and acts as one of the financing vehicle, alongside the Global Shield Solutions Platform (hosted by the Frankfurt School) and the CVF & V20 Joint Multi-donor Trust Fund (an initiative launched by the G7 and the Vulnerable Twenty [V20] Group of Ministers of Finance). In addition, to the overview on GSFF and Global Shield initiative, an overview of current programs designed to support this initiative were presented to enable the exchange of ideas.

The actions of the World Bank and the GSFF are designed to strengthen Senegal's strategic framework by considering the climate dimension in the management of public investments and the introduction of innovative financial instruments to raise funds in sustainable markets and to build resilience. Financial resilience against climate risks is one of the World Bank's new priorities, as it indicated with the launch of the Crisis Preparedness, Response, and Recovery Toolkit to help countries respond quickly and effectively to crises.

The development of a national DRF strategy will enable Senegal to mobilize innovative financing to provide appropriate responses to climate shocks. This strategy will complement the framework policy document on sustainable financing. Senegal is thus demonstrating the innovative nature of its financing management and its commitment to the Sustainable Development Goals (SDGs). This approach paves the way for new partnerships between public issuers and private investors in achieving these universal goals. 

Notably, both the Senegal DRF diagnostic and its dissemination are supported and co-funded by the United States Agency for International Development (USAID).

About the Diagnostic Report on Climate and Disaster Risk Financing (DRF)

The World Bank's Disaster Risk Financing diagnostic report provides a crucial analysis of a country's financial capacity to manage and respond to natural disasters. It assesses historical and potential future losses, reviews legal and financial frameworks, and proposes strategic recommendations for improving disaster risk financing. This report is an essential tool for decision-makers to strengthen economic resilience to the impacts of climate change and natural disasters.

About the Global Shield Financing Facility 
The Global Shield Financing Facility is a multi-donor trust funded program hosted by the World Bank. This program is one of the financing vehicles of the Global Shield against Climate Risks initiative, launched by the G7 and Vulnerable Twenty (V20) Group of Ministers of Finance. The program’s development objective is to increase protection for vulnerable people and countries by unlocking increased pre-arranged finance against disasters and climate risks. The Global Shield against Climate Risks is implemented through its financing vehicle, which includes three programs: The Global Shield Solutions Platform, hosted by the Frankfurt School: the CVF & V20 Joint Multi-donor Trust Fund and the Global Shield Financing Facility.
 

For more information contact: Thibault Bouessel du Bourg (tbouesseldubourg@worldbank.org); Tenin Fatimata Dicko (tdicko@worldbank.org) and Mazen Bouri (mbouri@worldbank.org)