Climate change: The AfDB injects over 16 billion FCFA for the benefit of Beninese farmers
This is a breath of fresh air for the Beninese agricultural sector. The African Development Bank (ADB) has just approved funding of $30.25 million, or more than 16.7 billion CFA francs, to support Benin’s efforts to protect its farmers against the increasing effects of climate change and food insecurity.
SUMMARY
This funding is part of a multisectoral climate resilience strategy, supported by the Beninese government with the help of its technical partners. The goal is to reduce the vulnerability of small-scale farmers, enhancing their access to credit, and preventing crop losses due to repeated climate shocks.
“This investment demonstrates our commitment to strengthening the climate resilience of the Beninese agricultural sector while addressing the urgent needs of vulnerable farming communities,” emphasized Robert Masumbuko, ADB Country Representative in Benin.
150,000 farmers involved
At the heart of this initiative is the establishment of an innovative agricultural insurance system, structured on two levels: sovereign coverage against weather risks, managed by the Pan-African Risk Management Mutual, and a micro-insurance mechanism aimed directly at small producers.
This system is expected to reach 150,000 farmers, most of whom are located in the northern parts of the country, which are particularly prone to episodes of drought, floods, and instability in the Sahel.
According to ADB projections, if no adaptation measures are taken, the country could see a 22% drop in its cotton production and a 6.3% fall in corn production, leading to economic losses estimated at over 201 billion CFA francs.
The implementation of the project has been entrusted to the National Fund for Agricultural Development (NFAD), already tasked with the pilot phase of agricultural insurance in Benin. In addition to insurance coverage, the project plans to:
provide modern agrometeorological equipment,
implement early warning systems,
and promote so-called “climate-smart” agricultural practices.
These components aim to strengthen the adaptive capacity of farmers and agricultural supervisory structures, while promoting private investment in the sector.
A social response in the sensitive areas of the north
Beyond the strictly agricultural aspect, the project is also rooted in a logic of social cohesion, particularly in the border regions of northern Benin where tensions are heightened by the forced displacement of populations fleeing Sahel violence.
Specific actions will be launched to facilitate the integration of displaced persons into host villages, prevent land conflicts, and strengthen local social fabric.
This funding supports the vision of the Beninese government, which for several years has been working to modernize and secure its agriculture, while responding to climate challenges. Through innovative risk management tools, the project also paves the way for greater bank involvement in rural areas, by making small-scale farmers more “credible” to financial institutions.
With this new support from the ADB, Benin is thus confirming its position as one of the most active countries in the sub-region in terms of climate adaptation and agricultural transformation.
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