Publications

Small businesses make up 85% of firms in Lesotho, yet most are informal and have little protection when droughts and floods strike. This case study shows how Lesotho is moving from reactive disaster response to a pre-arranged, layered financing system, anchored in its first national disaster risk financing strategy and a dedicated resilience window for micro, small, and medium enterprises (MSMEs). Supported in part by a US$8.5 million GSFF grant, the approach prioritizes women-owned businesses and builds on the country's first sovereign drought insurance payout in 2025.

This case study is part of the "Adaptation and Resilience Solutions in Action" series which showcases how countries and partners are addressing climate risks and building resilience through innovative policies, programs, and financing solutions.