The Board of Directors of the African Development Bank Group has approved $30.25 million in financing for a pioneering initiative to bolster climate resilience and safeguard agricultural livelihoods in Benin.
This initiative will protect 150,000 smallholder farmers against climate shocks in a country where agriculture employs seven out of ten people but remains at the mercy of an increasingly unpredictable climate.
The departments of Alibori and Atakora are particularly vulnerable, with one in four farmers experiencing food insecurity, well above the national average. These
regions also face compounding challenges from instability in the Sahel, including crossborder border displacement and trade disruptions due to border closures with Niger.
Projections suggest that without intervention, climate change could reduce cotton production by 22 percent and maize yields by 6.3 percent, potentially resulting in economic losses exceeding 201 billion CFA francs.
"This investment represents our commitment to strengthening climate resilience in Benin's agricultural sector while responding to the urgent needs of vulnerable farming communities," said Robert Masumbuko, African Development Bank Country Manager in Benin. "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, whose pilot phase is managed by Benin's National Fund for Agricultural Development (FNDA). It will introduce a suite of climate risk transfer mechanisms, including sovereign insurance against droughts and floods via the African Risk Capacity, and micro-insurance products for smallholder farmers. These tools will improve farmers' risk profiles with financial institutions, thereby enhancing their access to credit and investment opportunities.
In addition to risk transfer mechanisms, the program will strengthen institutional capacity for climate disaster management, deploy early warning systems with agrometeorological equipment, and promote climate-smart agricultural practices.
The initiative aims to ensure that at least 30 percent of beneficiaries are youth and 30 percent are women. It also includes activities to support the peaceful integration of displaced populations, enhancing social cohesion in host communities.
The financing comes from multiple sources: $20 million from the Transition Support Facility's "prevention" window; $5 million from the African Development Fund, $3 million from the Africa Disaster Risk Financing Programme (ADRiFi) multi-donor trust fund, and $2.44 million in counterpart contributions from the Government of Benin.
The project aligns with Benin's National Development Plan (2018-2025) and National Adaptation Plan (2022-2027), supporting the country's agricultural transformation objectives while strengthening climate resilience through innovative financial instruments.
Strategic partnerships with the World Food Programme, World Bank, and bilateral donors such as Swiss and Luxembourg cooperations ensure comprehensive support for sustainable agricultural development and the rollout of agricultural insurance in Benin.
For farming families, this financing represents hope for protected harvests, stable incomes, and a safer future for their children. For northern Benin communities, this project is a guarantee of stability and social cohesion in a strategic region of West Africa.
The African Development Bank Group reaffirms its commitment to driving agricultural transformation across Africa through innovative climate adaptation solutions that protect vulnerable communities and foster sustainable development and regional stability.
