AfDB Approves $30M for Benin to Boost Climate Resilience and Farm Security

The African Development Bank Group (AfDB) has approved a transformative $30.25 million financing package for a climate protection and agricultural resilience program in Benin. The ambitious initiative, targeted primarily at the vulnerable northern regions of the country, is set to safeguard the livelihoods of 150,000 smallholder farmers from the escalating threats of climate change. This investment signals a major milestone in the nation's efforts to secure food systems, enhance rural incomes, and promote social cohesion in conflict-prone areas.

Responding to Climate and Security Pressures in Northern Benin

Benin’s agricultural sector is the backbone of its economy, employing approximately 70% of the population, yet remains deeply vulnerable to climate extremes. Northern regions such as Alibori and Atakora bear the brunt of this vulnerability. These areas experience prolonged droughts, sudden flooding, and environmental degradation, which are exacerbated by instability in neighboring Sahel countries, leading to forced displacement and the closure of trade borders—particularly with Niger.

The result is a staggering level of food insecurity, with one in four farmers in these regions struggling to feed their families—double the national average. Compounding the crisis, climate models project a 22% drop in cotton production and a 6.3% decline in maize yields over the coming years, representing potential losses of over 201 billion CFA francs.

Climate-Smart Financing for a Resilient Agricultural Sector

The newly approved program offers a comprehensive and innovative response. According to Robert Masumbuko, AfDB Country Representative in Benin, this investment demonstrates AfDB’s commitment to long-term climate adaptation and agricultural transformation in West Africa.

“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,” Masumbuko said.

The program introduces cutting-edge risk transfer mechanisms, including:

• Sovereign insurance coverage against droughts and floods via the African Risk Capacity

• Micro-insurance for smallholder farmers, improving their access to credit and investment

• Disaster preparedness tools, including early warning systems and agrometeorological equipment

These measures are designed to protect harvests and stabilize rural incomes—essential for long-term agricultural and economic resilience.

Strategic Support for Women and Youth

The initiative is inclusive by design, ensuring that 30% of beneficiaries are women and another 30% are youth, acknowledging their critical roles in farming and community sustainability. It also emphasizes social cohesion, particularly through the integration of displaced populations into host communities in a peaceful and productive manner.

Strengthening National Systems and Policy Alignment

The financing package is also structured to support Benin’s broader national goals, aligning with the:

• National Development Plan (2018–2025)

• National Adaptation Plan (2022–2027)

It strengthens existing efforts led by Benin’s National Fund for Agricultural Development (FNDA), which has been piloting agricultural insurance schemes. This new investment scales up those efforts into a national model.

The program's institutional capacity-building component will empower local governments and public institutions to better plan, monitor, and respond to climate disasters. It also promotes climate-smart agricultural practices, which will help restore degraded lands, conserve water, and improve crop resilience.

A Multilateral Effort Backed by Global Partners

Funding sources for the project are as diverse as its impact:

• $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 in national counterpart contributions

The project enjoys strong multilateral backing, with key support from the World Food Programme (WFP), World Bank, and bilateral development partners including Switzerland and Luxembourg. These partnerships aim to bolster the long-term sustainability of the agricultural insurance ecosystem in Benin.

A Vision for Climate-Resilient Development

Ultimately, this program does more than protect farmers from climate shocks—it lays the foundation for a resilient, equitable, and sustainable rural economy. For farming families, it offers the hope of a secure harvest and a better future. For northern Benin, it is a stabilizing force in a region vulnerable to both environmental and political volatility. And for the government, it offers a fiscal buffer against recurring natural disasters.

The African Development Bank continues to demonstrate leadership in advancing climate adaptation and inclusive growth. Through strategic investments like this, it is helping Africa move toward a future where natural disasters no longer mean economic ruin, but rather opportunities for renewal and resilience.