Benin secures $30 Million boost for climate-resilient farming in the face of growing climate threats

The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved $30.25 million in financing for a groundbreaking climate protection and agricultural resilience program in Benin.

 With this approval, Beninese farmers, particularly those in the country’s northern region, will gain vital protection against the devastating impacts of droughts and floods that have long threatened their livelihoods.

The new initiative is expected to shield 150,000 smallholder farmers from climate shocks in a country where agriculture remains the primary employer, engaging seven in ten citizens.

Yet, despite its importance, the sector continues to suffer from increasing climate unpredictability.

 The situation is especially dire in the departments of Alibori and Atakora, where one in four farmers is food insecure, significantly above the national average.

Northern Benin faces a dual burden: it grapples with worsening climate events and spillover instability from the Sahel, exacerbated by forced displacement and border closures with Niger.

Projections paint a concerning picture for the future, with expected drops in cotton and maize yields of 22% and 6.3%, respectively.

These potential losses amount to roughly 201 billion CFA francs in economic damages.

“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 Representative in Benin.

The program builds on the Beninese government’s ongoing efforts to establish a national agricultural insurance framework, currently piloted by the National Fund for Agricultural Development (FNDA).

It introduces a suite of innovative climate risk transfer mechanisms: sovereign insurance via the African Risk Capacity for drought and flood coverage, and micro-insurance tailored for smallholders.

These tools are designed not only to provide post-disaster relief but also to enhance farmers’ creditworthiness in the eyes of financial institutions.

With a reduced risk profile, farmers will gain improved access to credit, unlocking new investment opportunities in the agricultural sector.

Beyond insurance, the project will strengthen institutional capacity for climate-related disaster management, roll out early warning systems, and provide agrometeorological tools to guide farmers in real-time.

It will also promote climate-smart agricultural practices to further enhance long-term productivity and sustainability.

The program sets strong inclusion targets: at least 30% of direct beneficiaries will be youth, and another 30% women.

Moreover, social cohesion activities have been integrated into the design to support the peaceful integration of displaced populations into host communities, es an urgent need in the conflict-affected northern areas.

Financing for the project is drawn from several sources:

• $20 million from the “prevention” envelope of the Transition Support Facility
• $5 million from the African Development Fund
• $3 million from the Africa Disaster Risk Financing Programme (ADRiFi) multi-donor trust fund
• $2.44 million in counterpart contributions from the Beninese government for insurance premiums

The project aligns with key national frameworks, including Benin’s National Development Plan (2018–2025) and National Adaptation Plan (2022–2027).

 It also supports the broader goals of agricultural transformation while deepening resilience to climate change through insurance innovation.

Strategic partnerships further reinforce the project’s scope and sustainability.

 These include collaborations with the World Food Programme, the World Bank, and bilateral donors such as Switzerland and Luxembourg.

Collectively, these partners are working to institutionalize agricultural insurance and build a more resilient rural economy.

For farming families in Benin, this financing offers a future of protected harvests, more stable incomes, and greater climate security.

For the communities of northern Benin, it ensures stability in a region vulnerable to both environmental and political pressures.

And for the Beninese state, it represents a leap forward in building fiscal resilience against increasingly frequent climate-induced disasters.

Notably, this initiative echoes a broader continental shift as African nations increasingly turn to climate risk financing tools to protect rural livelihoods.

“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,. added Masumbuko.

The program stands as a model that can be scaled and adapted elsewhere across the continent.

Through such targeted investments, the African Development Bank Group continues to reaffirm its commitment to Africa’s agricultural transformation, delivering solutions that safeguard the vulnerable while advancing sustainable development and regional peace.