Promoting the provision of natural disaster-backed loans through BOAD in West Africa, Phase II

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In the West African Economic and Monetary Union (UEMOA), the need for investment in climate protection and climate adaptation projects is high in view of the increasing impacts of climate change on the region. However, the available financing for investments of this kind is not sufficient to meet demand. In addition, developing countries need additional financial support from the international community quickly in the event of natural disasters, but this often comes with a delay and is not sufficient. The affected countries are then forced to reallocate budgets for emergency aid and reconstruction measures from other areas (such as social infrastructure) or to make spending cuts. The FC project Promoting the provision of loans secured against natural disasters by the BOAD in West Africa starts precisely here. The project aims to finance climate protection and climate adaptation investments in the UEMOA member states using loans secured against natural disasters (Shock Resilient Loans, SRL) from the West African Development Bank (BOAD). The intermediaries to the target group are the governments of the UEMOA member states, which receive loans secured against natural disasters for climate protection and climate adaptation investments through the BOAD. The target group is the (poor) population of the respective UEMOA member state who are affected by natural disasters and thus benefit from climate protection and climate adaptation investments and, in the event of a natural disaster, from emergency aid and reconstruction measures. In Phase I, climate adaptation investments in the UEMOA member states are financed by the BOAD loans supported by the FC measure. In Phase II, this purpose is to be expanded to enable the financing of investments in health infrastructure. In both phases, the BOAD loans are initially to be secured with climate risk insurance.