Mozambique - Climate Insurance Finance and Resilience Project (CLINFIREP)

General

The Climate Insurance, Finance and Resilience Project (CLINFIREP) seeks to promote the development of climate-resilient infrastructure and agricultural diversification using climate-smart agriculture practices to enhance Climate Resilience for sustained economic growth in Mozambique. The project also supports the Government national preparedness plan to reduce social vulnerability to drought through adoption of preventive insurance policies and programs and helping strengthen national capacity to respond to climate disasters. This is an important intervention as the effects and impacts of climate change are already being felt in the form of erratic and inadequate rainfall patterns and declining on-farm productivity. The total project cost is 33.94 million Units of Account (47.78 million dollars) and will be implemented over 5 years (2021-2026) in the 10 drought prone districts of the Maputo Province, Gaza and Inhambane Province. It builds on past investments by the Bank on drought resilience and is well aligned with the Government of Mozambique (GoM’s) priorities particularly the Disaster Risk Reduction, Emergency Fund, the National Adaptation Plans and the overall policy framework on climate change adaptation and mitigation. It is anticipated that the outcomes of the Project will increase GoM’s institutional capacity to develop climate proof integrated development programs and devise adequate climate insurance products, in the targeted areas in Mozambique. The CLINFIREP will also facilitate the participation of the country in the sovereign insurance pool of the African Risk Capacity (ARC) or other insurance mechanisms, which supports countries that experience climate shocks, including droughts and tropical cyclones.

Objectives

The CLINFIREP proposes to reduce the impact of climate events and strengthen the resilience capacity of communities and production systems to better cope with the effects of drought, which are exacerbated by rural poverty, food insecurity, and land degradation. The specific objectives of the project are: (i) to improve climate resilient infrastructure (ii) to promote climate-resilient income-generating activities and strengthen food security and nutrition and (iii)to enhance insurance mechanisms against climate-related disasters.

Target Groups

The Project will benefit the communities of the selected districts, displaced people in the Cabo Delgado Province, the Government at large, particularly the National Institute of Disaster Management (INGD), including the Disaster Management Fund (DMF), Food Security and Nutrition Secretariate (SETSAN), and Ministry of Public Works, Housing and Internal Waters (MOPH), Ministry of Economy and Finance (MEF), Ministry of Industry and Commerce (MIC), Ministry of Land and Environment (MTA) and Ministry of Agriculture and Rural Development (MADER) and the respective agencies at provincial and district levels where the Project will be implemented, through additional capacity and, technical and financial resources, to address their development challenges. The direct beneficiaries of the Project interventions are anticipated at around 500,000 people affected by droughts in the Southern regions of the country, of which at least 54% are women and youth. While in the northern Mozambique, the project will support some of the displaced people that have been affected by the armed groups. Other indirect beneficiaries include the private sector, the agricultural marketing enterprises, commercial and investment Banks, farmers’ groups and their representatives at the farmers’ associations.