ABIDJAN / Ivory Coast, 28 July 2025: The African Development Bank Group (AfDB) has approved a financing package worth $30.25 million for a climate protection and agricultural resilience programme in Benin, with a particular focus on smallholder farmers in the country’s drought-prone northern regions.
The initiative is expected to directly benefit 1.5 lakh farmers, with an emphasis on ensuring youth and women’s participation. Agriculture in Benin accounts for nearly 70% of employment, yet remains highly vulnerable to climate variability. The situation is particularly severe in the northern departments of Alibori and Atakora, which face the dual burden of erratic weather patterns and instability spilling over from neighbouring Sahel nations.
AfDB officials said the programme aims to introduce sovereign drought and flood insurance, alongside micro-insurance products tailored for smallholders. “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’s Country Representative in Benin.
The financing is sourced from multiple windows within the Bank’s development architecture, including $20 million from the Transition Support Facility, $5 million from the African Development Fund, and $3 million from the multi-donor Africa Disaster Risk Financing Programme (ADRiFi). The Beninese government will contribute approximately $2.44 million towards insurance premium subsidies.
Cotton and maize, two of Benin’s primary crops, are projected to witness significant declines in yield due to climate change—by 22% and 6.3% respectively—if adaptive measures are not put in place. Economic losses could exceed CFA 201 billion, the AfDB said, citing recent assessments.
Beyond financial protection, the programme also envisages the deployment of early warning systems equipped with agrometeorological tools, training for disaster management authorities, and promotion of climate-smart farming practices. Special provisions have been included to support peaceful integration of displaced populations, given the ongoing tensions in border areas with Niger.
The initiative aligns with Benin’s National Development Plan (2018–2025) and National Adaptation Plan (2022–2027), and complements efforts by international partners such as the World Bank, World Food Programme, and bilateral donors from Switzerland and Luxembourg.
The pilot phase of the agricultural insurance scheme is currently being implemented by the National Fund for Agricultural Development (FNDA), and is expected to be scaled up through this programme.
AfDB said the broader goal is to not only protect livelihoods but also foster financial inclusion and rural development in a region marked by climatic and geopolitical fragility.