Africa’s climate protection gap took center stage at the inaugural CDRFI Africa Forum in Nairobi, where delegates highlighted the continent’s low insurance coverage for disaster losses. African governments absorb more than 90% of disaster losses, an estimated $7–15 billion, because the continent insures only 3–5% of them, against a global average of about 40%.
From Emergency Spending to Proactive Preparedness
The forum, themed “Increasing Insurability to Close the Protection Gap in Africa”, brought together officials from 21 countries. Speakers framed the issue as a development finance failure, not just an insurance problem. Dr. Boniface Makokha, Kenya’s Principal Secretary for Economic Planning, urged governments to identify vulnerable assets and plan recovery financing in advance.
Hope Murera, CEO of ZEP-RE, emphasized shifting from emergency spending to proactive financial preparedness. Ekhosuehi Iyahen of the Insurance Development Forum noted that while prediction has improved, protection has lagged, linking the gap to broader development issues.
Insurability as a Test for Investment
The connection between insurability and investment emerged as a key focus. Dr. Protazio Sande of EAISA stated, “If it is not insurable, perhaps it is not investable.” Godfrey Kiptum, Kenya’s Insurance Commissioner, called for regulation that balances policyholder protection with innovation, citing the upcoming El Niño event as a pressing concern.
Emiko Todoroki of the World Bank Group advocated for financing strategies tailored to each country’s risk profile, combining budget reserves, contingent financing, insurance, and risk reduction investments.
The forum aimed to translate the 2025 Zanzibar Declaration into action, with delegates calling for a sustained, government-led effort. Panels discussed risk retention versus transfer and the persistence of protection gaps despite growing losses. ZEP-RE unveiled its Sustainability Report, pledging continued work on climate and disaster risk financing.
Bridging the Protection Gap Through Layered Strategies
Ekhosuehi Iyahen emphasized that disasters should not become fiscal crises, framing resilience as an investment in growth and stability. She highlighted the disparity between prediction advancements and protection measures, noting that a protection gap often reflects broader development challenges. Iyahen introduced Shock-Resilient Loans, an initiative exploring how sovereign lending can incorporate risk transfer mechanisms to provide governments with fiscal relief after major shocks.
Governments were encouraged to adopt a layered approach, combining budget reserves, contingent financing, insurance, and risk reduction investments to address varying levels of risk. This strategy acknowledges that no single tool can cover all exposures. The forum also focused on translating the 2025 Zanzibar Declaration into actionable programs, with insurance regulators from 12 countries committing to protect critical public infrastructure.
From Policy to Practice: Sovereign Risk Finance in Africa and Beyond
The forum’s first panel, moderated by James Sinah of the World Bank Group, tackled the question of which risks governments should retain and which should be transferred to the private sector. Panelists included representatives from Kenya, Rwanda, Zambia, the Philippines, and ZEP-RE.
Sinah outlined three priorities: treating public asset protection as an immediate development priority, recognizing the importance of risk layering, and strengthening government leadership alongside regulatory support. He also emphasized the need for regional risk pooling to create scale.
A second panel, moderated by Linet Odera of ZEP-RE, explored the persistence of protection gaps despite growing losses. Participants identified thematic risk pools as a potential solution for Zanzibar Declaration signatories to address uninsurability and limited underwriting capacity.
Odera highlighted three key areas for narrowing the gap: reliable data, stronger analytics and modeling capabilities, and innovation. She noted that better risk information can strengthen resilience planning, support product development, and contribute to market development.
Regional Collaboration and Knowledge Sharing
The forum facilitated knowledge sharing between African countries and international representatives from Jamaica and the Philippines, who shared their national experiences in disaster risk financing and insurance. These comparative lessons aimed to inform African sovereigns’ approaches to climate protection.
ZEP-RE, established in 1990 as a specialized institution of COMESA, operates with its headquarters in Nairobi. Its subsidiary, ACRE Africa, focuses on resilience and credit access for smallholder farmers.
