Availability of climate risk and resilience companies help to protect vulnerable sectors and societies from climate disasters and risks.
Sub-Sahara Africa (SSA) is the worst affected continent by adverse effects of climate change impacts such drought, flooding etc. SSA depends most on agriculture sectors for its economy and livelihood and unfortunately agriculture is the most vulnerable sectors to adverse effects of climate change impacts. This in turn led to worsening of food insecurity in the continent. The situation is further complicated by low adaptive capacities of the region.
Recognizing the challenges of climate change impacts, various strategies aimed at adaption and mitigation of climate change are being developed and implemented in all SSA. However, given the high magnitude of climate change induced disasters and risks occurring and foreseen to happen in the future, a lot remains to be done. Moreover, working on adaption and mitigation mechanisms alone won’t be enough to meet the challenges of climate change impacts. Thus, there is a need to develop supplementary strategies to existing efforts being implemented against climate change impacts in SSA. Establishing climate resilience and risk insurance companies and banks (CRICB) in SSA countries appears to be one of such strategies to complement the existing efforts in SSA. If CRICB are available in SSA countries, private and government sectors such as agriculture, hydroelectric dams, irrigation schemes, cities etc. which are highly prone to climate change impacts can be protected by CRICB from climate change induced disasters and risks. Moreover, vulnerable societies and even individual investors can get similar protections. Thus, it is timely and important to establish CRICB in SSA. CRICB can be established by government and/or by private sectors. However, policies, regulations and guidelines for establishment of CRICB should be drafted and approved. In this regard African Union (AU) is proposed to play a leadership role to facilitate establishments of CRICBs in SSA.