African Development Bank approves $30m for climate resilience in Benin
The African Development Bank Group (AfDB) has approved $30.25 million in financing for a program aimed at bolstering climate protection and agricultural sector resilience in Benin, West Africa.
This investment will help 150,000 smallholder farmers, particularly in the vulnerable northern regions, to mitigate the devastating effects of droughts and floods on their harvests.
Agriculture is vital for the country, employing 70% of the population. However, it remains vulnerable to an increasingly unpredictable climate.
The situation is particularly critical in the departments of Alibori and Atakora, where one in four farmers suffers from food insecurity, well above the national average.
Climate projections show potential drops in cotton and maize yields, leading to an estimated CFA 201 billion in economic losses.
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Robert Masumbuko, African Development Bank Country Representative in Benin, said: “This investment represents our commitment to strengthening climate resilience in Benin’s agricultural sector while responding to the urgent needs of vulnerable farming communities.
“By introducing innovative risk management tools and strengthening local capacities, we are helping farmers adapt to climate change while preventing conflicts and promoting social cohesion in fragile border areas.”
The project strengthens the Beninese government’s efforts to establish agricultural insurance, building on the pilot phase managed by Benin’s National Fund for Agricultural Development (FNDA).
It introduces innovative climate risk transfer mechanisms, including sovereign insurance coverage against droughts and floods via the African Risk Capacity, and agricultural micro- insurance for smallholders.
Beyond insurance, this initiative will help improve institutional capacities for climate disaster management, deploy early warning systems with agrometeorological equipment, and promote climate-smart agricultural practices.
The program specifically targets 30% youth participation and ensures 30% female representation among the 150,000 direct beneficiaries.
Furthermore, in order to support peaceful integration of displaced populations in host communities, it gives special attention to social cohesion activities.
The financing comes from multiple sources: $20 million from the “prevention” envelope of the Transition Support Facility, $5 million from the African Development Fund, $3 million from the ADRiFi multi-donor trust fund, and approximately $2.44 million in national counterpart contributions for insurance premiums.
This project aligns with Benin’s National Development Plan 2018-2025 and National Adaptation Plan 2022-2027, supporting agricultural transformation and climate change resilience through innovative instruments such as insurance.
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