Agriculture Investments

African Development Bank Group Approves $30.25M in Benin

African Development Bank Group has approved $30.25 million in financing for a climate resilience and agricultural risk management program.
Photo by Alexander Schimmeck on Unsplash

Key Takeaways:

  • $30.25 million approved to bolster climate protection and agricultural resilience in northern Benin
  • Initiative to support 150,000 smallholder farmers, including 30% women and 30% youth
  • Project introduces sovereign and micro-insurance, early warning systems, and climate-smart farming
  • Targets food insecurity, displacement, and climate-induced instability in Alibori and Atakora
  • Aligns with Benin’s national development and adaptation plans, with backing from multiple global partners

Supporting Smallholder Farmers Through Risk Mitigation

The African Development Bank Group has approved $30.25 million in financing for a climate resilience and agricultural risk management program in Benin, aiming to protect 150,000 smallholder farmers, particularly in the climate-vulnerable northern departments of Alibori and Atakora. These regions face high levels of food insecurity and are increasingly affected by climate shocks, including droughts and floods.

With agriculture employing 70% of Benin’s population, the Bank’s investment reflects a critical step toward stabilizing rural livelihoods and ensuring long-term food security.


Climate Insurance and Disaster Preparedness at the Core

The project centers around the deployment of innovative climate risk transfer tools, including:

  • Sovereign insurance coverage through the African Risk Capacity
  • Agricultural micro-insurance schemes tailored for smallholders
  • Improved access to credit through better risk profiling
  • Early warning systems and agrometeorological tools to inform preparedness

These tools are designed to buffer farmers against forecasted production losses of 22% in cotton and 6.3% in maize, which could otherwise cost the country up to 201 billion CFA francs.


Social Impact: Gender, Youth, and Displacement Inclusion

The program’s design ensures inclusive participation, targeting at least 30% women and 30% youth among its direct beneficiaries. It also prioritizes social cohesion activities aimed at integrating displaced populations affected by regional instability in the Sahel and Niger border regions.

“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, AfDB Country Representative in Benin.


Funding Sources and Strategic Alignment

Funding is drawn from a mix of international and national sources:

  • $20 million from the Transition Support Facility (prevention window)
  • $5 million from the African Development Fund
  • $3 million from the ADRiFi multi-donor trust fund
  • $2.44 million from Benin’s national counterpart contributions

The project is fully aligned with Benin’s National Development Plan (2018–2025) and National Adaptation Plan (2022–2027). It also builds on strategic partnerships with the World Food Programme, World Bank, and bilateral donors from Switzerland and Luxembourg.


Toward Resilience and Regional Stability

Beyond immediate protections for harvests and livelihoods, this initiative represents a broader move toward financial resilience and regional stability. For Benin’s farming communities, it offers the tools to withstand climate uncertainty. For national and international partners, it reinforces a model of sustainable, inclusive agricultural transformation.

The African Development Bank Group remains committed to empowering African nations with scalable, climate-smart tools that support both development and peacebuilding in vulnerable areas.

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