Southern Africa

  1. Home

What are we funding?

 

GRANT AMOUNT

ENDORSEMENT DATE

ACTIVITIES

INSTRUMENTS SUPPORTED

WB PROJECT

US$30 million

January 16, 2024

Establishing the regional climate fund as a centralized mechanism that lowers technical and financial barriers to using DRF instruments. Participating countries will be able to better layer their risks by using instruments that respond to shocks of variable magnitude and frequency.

A regional climate risk fund that will offer (i) reserves (which earn income), (ii) a contingent financing product, and (iii) parametric insurance products (under design, expected date TBD)Regional Emergency Preparedness and Access to Inclusive Recovery (P181014)
  • The importance of a regional approach to increased financial resilience in Southern Africa is underscored by cross-border disaster events, such as the 2023 tropical cyclone that hit Malawi and Mozambique. Many countries have a skeleton of DRF components in place, but these systems need additional funding and a greater level of coordination and preparedness to make them truly effective.
  • The Regional Emergency Preparedness and Access to Inclusive Recovery Program (REPAIR) project was approved by the World Bank Board of Directors in July 2024.
  • In FY24, GSFF Steering Committee members endorsed the REPAIR work plan, including a proposed US$30 million GSFF grant to support a new regional climate fund that will eventually include 12 countries in Southern Africa. The fund will offer three layered financial instruments to provide financial protection against climate events that range in frequency and severity: a reserve instrument, contingent financing, and parametric insurance products.
  • Three countries (Comoros, Madagascar, and Mozambique) have joined the initiative and allocated their US$280 million World Bank IDA funds to the different instruments; nine other countries are expected to be onboarded in 2025–2026.
  • The project highlights strong cooperation among African countries and ARC Ltd., which are joining forces and resources to increase regional resilience to natural disasters

 

Useful links