UNDP begins Insurance and Risk Financing Facility in Ethiopia

In a move towards mitigating risks, the United Nations Development Program (UNDP) inaugurated the Insurance and Risk Financing Facility (IRFF) in Ethiopia.

The newly launched IRFF, with a focus on supporting farmers, is to strengthen the capacity of Ethiopian communities and businesses in managing shocks through the provision of accessible, affordable, and innovative insurance products.

Samuel Doe, the UNDP Ethiopia Resident Representative, underscored the crucial role of IRFF in fortifying the insurance sector and bolstering the resilience of the Ethiopian population.

Given Ethiopia’s susceptibility to a range of natural and manmade hazards, the initiative is seen as a pivotal step towards reducing vulnerability.

Doe highlighted the expected impact of the Insurance and Risk Financing Facility, stating, “Through a combination of innovative insurance products, risk assessment tools, and capacity-building initiatives, the facility aims to empower communities, businesses, and government institutions to better anticipate, absorb, and recover from shocks and crises.”

One notable aspect of the IRFF is its support for the National Bank of Ethiopia in establishing an insurance supervision directorate.

Belay Tulu, the Insurance Supervision Director at the National Bank of Ethiopia, emphasized the need to build resilience at the household, business, and community levels to prevent widespread suffering from disasters.

Dereje Abebe, the Executive Director of the Ministry of Agriculture Investment and Product Marketing, highlighted the IRFF’s potential to further develop activities in the sector.