Statement

Of

H.E Moses Vilakati

Commissioner

Agriculture, Rural Development, Blue Economy and Sustainable Environment

AFRICAN UNION COMMISSION

ON

MINISTERIAL ROUNDTABLE: FINANCING FOR DISASTER RISK REDUCTION

GENEVA- SWITZERLAND 

4 June 2025

Honourable Ministers, Distinguished Ladies and Gentlemen

1. Disasters are a recurrent phenomenon in Africa, despite efforts to reduce them and mitigate their impacts on communities.

2. Indeed, the latest 2021-2022 Africa Biennial Report on the Programme of Action for the Implementation of the Sendai Framework for Disaster Risk Reduction in Africa, reports an increase in the number of disasters from 496 for the period 2019-2020 to 612 from 2021-2022 on the continent; 137 million people were affected by disaster during 2021-2022 with induced mortality of more than 279,103 people and economic losses estimated at nearly $38 billion.

3. These are not mere numbers but lives lost and investments eroded and human capital is key for any development.

4. Eighty (80) per cent of these disasters are from extreme hydrometeorological events exacerbated by climate change and variability. 

5. The Intergovernmental Panel on Climate Change (IPCC) projections for Africa indicate that one of the most serious consequences of climate change is the likelihood of increased frequency and intensity of extreme weather events.

6. Furthermore, Africa is perceived to be warming faster than the rest of the world.

7. This will have devastating consequences for human wellbeing and far reaching repercussions on everything including food production, health, access to sustainable water as well as witness increased human morbidity and mortality.

8. The agricultural sector employs about 60% of the population, of which more than half are women, and represents at least 30% of Gross Domestic Products in most countries in Africa.
9. The financial losses caused by disasters continue to rise and thus  generate significant fiscal risk and create major budget volatility. Even countries with robust disaster risk management programs can still be highly exposed to the economic and fiscal shocks caused by major disasters. 
10. Hence the relevance of Disaster Risk Finance (DRF) which is more than ever critical to address the fiscal impacts and economic losses caused by hazards (e.g. cyclones, droughts, earthquakes, floods) to support countries to increase their financial resilience to disasters.
11. In Africa, Disaster Risk Financing mechanisms have been put in place, including the Africa Risk Capacity, African Development Bank and international institutions such as the World Bank through Global Funds for Disaster Risk Reduction (GFDRR).

12. Basically, the Disaster Risk Financing and Insurance Programs (DRFIP) in Africa help countries to ensure that their populations are financially protected in the event of a disaster.
13. The Loss and Damage Fund that has been set up after COP 28, ought to respond effectively to the real needs of communities in countries most affected by the effects of climate change.
14. We are also working on the establishment of the Community Recovery Resilient Facility in collaboration with UNDP, with the aim to support member states to mobilize resources needed to recover from disasters as it is not everyone who can afford insurance especially vulnerable communities.
15. I would also add the need to integrate Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA) because 80 percent of the disasters we are experiencing in Africa are climate-related: Droughts, Floods, Tropical cyclones; Locust invasion and Epidemics.
16.  This opens up a window for tapping into climate finance sources such as the Green Climate Fund.

17. It is for this reason that my department at the African Union Commission has embarked on capacity development programme aimed at supporting member states to access climate finance for various sectors such as water and to tap into the carbon markets.

18. I will fail in my duty if I do not emphasize that private sector investment is indispensable in this equation.

19. Strategic partnerships and systematic resource mobilization are vital, even as more public and private entities are compelled to prioritize strategies that address climate change and contribute to increased mitigation and adaptation.
20. I thank you for your kind attention.