UNDP Initiates Insurance and Risk Financing Facility in Ethiopia

ADDIS ABABA — The United Nations Development Program (UNDP) has introduced an Insurance and Risk Financing Facility (IRFF) in Ethiopia.

According to Ethiopian News Agency, This initiative aims to enhance the capability of communities and businesses to manage economic shocks by providing innovative insurance solutions, particularly for farmers. UNDP Ethiopia Resident Representative, Samuel Doe, highlighted the significance of the IRFF in bolstering the insurance sector and increasing the resilience of the Ethiopian people to both natural and manmade hazards.

Doe explained that the facility would employ innovative insurance products, risk assessment tools, and capacity-building efforts to help communities, businesses, and government institutions better prepare for, withstand, and recover from various challenges. Moreover, the IRFF is set to support the National Bank of Ethiopia in establishing an insurance supervision directorate to regulate the industry independently. Belay Tulu, the Insurance Supervision Director at the National Bank of Ethiopia, stressed the importance of building resilience within households, businesses, and communities to mitigate disaster impacts. The Ministry of Agriculture’s Executive Director for Investment and Product Marketing, Dereje Abebe, also noted the IRFF’s potential to expand insurance coverage and strengthen sector capacity.