What are we funding?
GRANT AMOUNT | ENDORSEMENT DATE | ACTIVITIES | INSTRUMENTS SUPPORTED | WB PROJECT |
US$8 million | January 15, 2019 | Developing a macro/sovereign insurance product that backstops Mozambique’s reserve fund for disasters and a DRF strategy that improves how the government receives and uses disaster funding. |
| Mozambique Disaster Risk Management and Resilience Program (P166437) US$90 million (approved on March 19, 2019) |
- A US$8 million GSFF grant led to the placement of a macro/sovereign insurance product that currently offers US$35 million in coverage through September 2025. The insurance product backstops Mozambique’s disaster fund, Fundo de Gestão de Calamidades. When Tropical Cyclone Freddy hit in 2023, a US$970,000 payout replenished the fund and alleviated the impact on people who lost their homes or were at risk of water-borne diseases.
- The grant has also supported the country’s first DRF strategy, which has improved public management of disaster spending and made the country more eligible to access pre-arranged financing.
- While the World Bank lending project closed in FY24, remaining GSFF funds will finance quality assurance procedures as the government puts the macro/ sovereign insurance contract in place for the 2024–2025 tropical cyclone season. The government will continue to finance the disaster fund from its budget and will work with the African Development Bank and the World Bank, through a follow-on project, to continue its macro/sovereign risk insurance coverage.