The African Development Bank has launched the Africa Climate Risk Insurance Facility for Adaptation to help African countries insulate themselves against the effects of climate change.

The facility will provide insurance to countries, businesses, and communities to help them cope with the impacts of extreme weather events such as droughts and floods.

The ACRIFA is expected to be hosted by the AfDB and will initially raise $1 billion in concessionary capital and grants.

This money will be used to develop and implement insurance products that are tailored to the specific needs of African countries.

I’m addition, the facility will also provide technical assistance to help countries develop their own climate risk management strategies.

The AfDB’s President, Dr. Akinwumi Adesina, in a statement on the bank’s website said that the ACRIFA is a “critical” initiative that will help African countries “build resilience against the adverse effects of climate change.”

‘It will raise an initial one billion dollars of concessionary high-risk capital and grants to catalyse the development and uptake of insurance solutions.

“This will help countries, businesses and communities adapt to climate change,”he said.

He added that the facility will “help to unlock private sector capital and unleash more investment in Africa.”

The Comoros President Azali Assoumani, Chair of the African Union, praised the ACRIFA as a “necessary innovation” that will help African countries “strengthen our adaptation and resilience capacities.”

Ibrahima Diong, the Director-General of the African Risk Capacity Group, speaking on the facility said that the ACRIFA will “scale up” what the African Risk Capacity Group is doing. And in addition, help to build data that feeds early warning systems in Africa and will expand partnerships to carry out services to clients, such as the World Food Programme.