World Bank launches REPAIR program to boost climate resilience in Eastern & Southern Africa

The World Bank’s recently approved Regional Emergency Preparedness and Inclusive Recovery Program (REPAIR), which African Risk Capacity Limited will implement, is set to enhance Eastern and Southern African countries’ resilience against climate shocks and attract $205 million in private capital to support these efforts.

According to the World Bank, over six million people in Comoros, Madagascar, and Mozambique will reportedly benefit from the new regional program.

“Under REPAIR, participating countries will benefit from customized financial tools designed to promptly deliver funds to countries within seven days of a climate-related disaster,” the World Bank explained.

As per the World Bank, the program is regional to maximise pooled resources and leverage private capital on the markets to increase financial coverage for participating countries.

African Risk Capacity Limited (ARC Limited) will implement the programme while enhancing regional integration by building a sustainable platform that raises large-scale financing for climate adaptation.

“This strategy enhances efficiency, encourages countries to share knowledge and solutions, and improves disaster planning, preparation, and response to safeguard vulnerable communities,” the World Bank said.

Boutheina Guermazi, World Bank Director of Regional Integration for Africa, the Middle East, and North Africa, commented, “We know from experience that mobilizing financing immediately after a disaster can be challenging. With REPAIR, governments will have anticipated and pre-positioned financing ready to disburse when the next disaster hits.

“The speed of response is crucial for saving lives, protecting livelihoods, and enabling an inclusive recovery.”

Idah Z. Pswarayi-Riddihough, World Bank Country Director for Mozambique, Madagascar, Mauritius, Comoros, and Seychelles, added, “We never know who and how a natural disaster will strike, but we know that Southern African countries are highly vulnerable to such shocks.

“REPAIR will allow them to respond quickly and flexibly to both small incidents and major crises, ensuring that financial assistance can swiftly reach those who need it most.”

As Reinsurance News understands, there will be a layered disaster risk financing approach, with funded reserves at the bottom to respond to moderate and more frequent events, followed by the use of contingent credit DDO instruments for severe and less frequent climate shock events, and then parametric insurance products for catastrophic climate shocks at the top.

By 2031, REPAIR, totalling $926 million, plans to expand to include nine additional countries that have shown interest.

Overall, it aims to attract $795 million in private capital to help strengthen the resilience of 24 million people across the region.

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