Strengthening Financial Resilience to Drought: A Feasibility Study For An Index-Based Drought Risk Financing Solution for Pastoralists in Niger

The livestock sector is one of the most important economic sectors in Niger. It contributes around 37% of agricultural GDP and 13% of national GDP. Niger is severely exposed to droughts, floods and locust invasions. However, the impact of droughts has been the greatest, affecting more than 31 million people. Drought impacts on pastoral livelihoods have repeatedly been catastrophic, with large parts of the national herd perishing. This feasibility study, conducted by the International Livestock Research Institute (ILRI) and the World Bank, aims to inform development and implementation of policies to increase the resilience of pastoralists in Niger and the Sahel against severe drought shocks. It provides the background knowledge required to make informed decisions on whether investing resources in the design and implementation of an IBDRFI program can achieve the desired public policy objectives.