6.2 Million Vulnerable People in Comoros, Madagascar, and Mozambique to Benefit from Financial Readiness Against Climate Shocks

WASHINGTON, July 30, 2024 — Over six million people in Comoros, Madagascar, and Mozambique are set to benefit from a new World Bank regional program that will enhance Eastern and Southern African countries' financial preparedness to respond to climate shocks. The Regional Emergency Preparedness and Inclusive Recovery Program (REPAIR), approved today, will strengthen countries’ resilience against climate shocks and seek to attract $205 million in private capital to support these efforts in its first phase.

“We know from experience that mobilizing financing immediately after a disaster can be challenging. With REPAIR, governments will have anticipated and pre-positioned financing ready to disburse when the next disaster hits,” said Boutheina Guermazi, World Bank Director of Regional Integration for Africa, the Middle East, and North Africa. "The speed of response is crucial for saving lives, protecting livelihoods, and enabling an inclusive recovery."

To improve adaptation to the impacts of climate change, the regional program relies on speed, flexibility, and sustainability. Under REPAIR, participating countries will benefit from customized financial tools designed to promptly deliver funds to countries within seven days of a climate-related disaster. The program will set up a Regional Climate Risk Fund with pre-arranged financial instruments to respond to shocks of different frequency and severity. Additionally, it aims to enhance the efficiency and readiness of local delivery systems in each country to ensure that financial assistance can quickly reach affected communities in the aftermath of a climate-related crisis.

The program is regional to maximize pooled resources and leverage private capital on the markets to increase financial coverage for participating countries. A specialized agency of the African Union, African Risk Capacity Limited (ARC Limited), will implement it while enhancing regional integration by building a sustainable platform that raises large-scale financing for climate adaptation. This strategy enhances efficiency, encourages countries to share knowledge and solutions, and improves disaster planning, preparation, and response to safeguard vulnerable communities.

“We never know who and how a natural disaster will strike, but we know that Southern African countries are highly vulnerable to such shocks. REPAIR will allow them to respond quickly and flexibly to both small incidents and major crises, ensuring that financial assistance can swiftly reach those who need it most,” emphasized Idah Z. Pswarayi-Riddihough, World Bank Country Director for Mozambique, Madagascar, Mauritius, Comoros, and Seychelles.

REPAIR is based on the region's recent Climate Country and Development Reports (CCDR), emphasizing that building climate adaptation and resilience is crucial for sustainable development. Eastern and Southern African countries are severely impacted by climate change, making natural disasters like droughts, floods, and tropical cyclones more frequent and severe. These disasters cause substantial human and economic losses, disproportionately affecting the poorest communities and women. This worsens poverty and hampers development efforts over the long term. For example, in 2023, tropical cyclone Freddy alone caused $507 million in damages across the region, highlighting the urgent need for initiatives that strengthen resilience and mitigate the impact of climate-related disasters in these vulnerable areas.

By 2031, REPAIR, totaling $926 million, plans to expand to include nine additional countries that have shown interest. Overall, it aims to attract $795 million in private capital to help strengthen the resilience of 24 million people across the region.

This ambitious program aligns with the World Bank’s new Crisis Preparedness and Response Toolkit. It leverages the Deferred Drawdown Option to increase pre-arranged financing available for disaster response. REPAIR also complements the World Bank's Contingent Emergency Response Projects with a reserve for moderate shocks and includes private sector Disaster Risk Transfer Solutions via insurance for catastrophic shocks.

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The original news release was published on https://www.worldbank.org/. Link here.