They say that storms test not just resilience but readiness—and that’s exactly what we’re facing in Eastern and Southern Africa. Climate challenges like floods, droughts, and tropical storms are unrelenting, and as I work across five Indian Ocean nations, I see their impact on lives, livelihoods, and entire economies. But here’s the thing: while the challenges are immense, so are the opportunities to prepare better.
This past week, I made a quick stop in the UK, and it was both eye-opening and energizing. My goal? To explore how we can help countries prepare financially for disasters instead of scrambling for resources after a disaster strikes. The countries I work on —Mozambique, Madagascar, Comoros, Mauritius, and Seychelles—are some of the most climate-vulnerable in the world. Way too often, floods wash away entire villages, droughts devastate crops, and storms tear apart critical infrastructure.
There’s an urgent need to move beyond short-term fixes. At COP29, there was an agreement to triple climate finance for developing countries, but let’s be honest—governments alone can’t foot this bill. That’s where the private sector comes in, and my visit to London gave me a front-row seat to some exciting initiatives bridging this gap.
My first stop was the World Bank’s LondonDisaster Risk Financing (DRF) Hub. This place is a think tank and action center rolled into one, helping countries model financial risks and design strategies to close protection gaps. They’re taking something inherently complex—like combining budget resources with other financial instruments, such as insurance, to increase the financial protection of countries against disasters. With input from experts in the UK Government and private markets like London’s insurance sector, they’re finding ways to ensure that funds are available when catastrophic disasters strike.
The key takeaway is that when governments better understand their risks, they’re in a stronger position to evaluate and utilize the financial tools available to them. For example, in addition to the resources offered by Multilateral Development Banks (MDBs), like the World Bank’s Crisis Response Toolkit, there are options from the private sector that can provide vital support.
One such option is the African Risk Capacity Ltd. (ARC) which provides countries with insurance-type instruments to tackle climate risks. These solutions aren’t perfect—fiscal constraints make it hard for many governments to justify premiums—but ARC’s payouts during this year’s droughts in Zambia, Zimbabwe, and Malawi were a lifeline, showing the strong value of insurance for catastrophic risks.
Of course, insurance alone isn’t a silver bullet. It’s like insuring your house—useful for the big stuff, but you still need savings and other safety nets for everyday expenses. That’s the logic behind the World Bank’s new Regional Emergency Preparedness & Access to Inclusive Recovery Project (REPAIR) Program), which I’m really excited about. It’s designed to help countries respond to shocks quickly, flexibly, and sustainably. What’s unique about REPAIR is its mix-and-match approach—countries can choose financial tools that best fit their needs and receive funds within seven days of a disaster.
The private sector also has a huge role to play, and I was glad to brainstorm with the members of the Insurance Development Forum and other partners on how to bring new ideas and investments into resilience-building.
I also met London’s vibrant NGOs, civil society organizations, and research centers to learn from the humanitarian space on ensuring that funds reach those who need them. Making this link is a critical focus of REPAIR, which has strong governance arrangements to ensure transparency and traceability of funds.
What struck me most during my time in London was the DRF Hub’s unique ability to unite diverse stakeholders, from governments and NGOs to the private sector, drawing on expertise to unlock new development opportunities and build financial resilience in Africa. The Hub was critical in shaping REPAIR, showing what’s possible when everyone pulls in the same direction.
There’s no denying the challenges ahead, but I left London feeling optimistic. We’re not just reacting to disasters anymore; we’re starting to plan ahead, bringing innovative tools and approaches to some of the most vulnerable communities. And that, to me, feels like real progress.
If we can scale these efforts, we’ll not only save lives and livelihoods but also help countries stand stronger in the face of future storms. Because, as they say, preparedness is the calm before the storm.
Source: blogs.worldbank.org