By World Bank Expands Climate Insurance for Somali Herders
Thousands of Pastoralists to Benefit from Phase Two of DRIVE Project
MOGADISHU – The World Bank is ramping up support for Somali pastoralists through phase two of the DRIVE Project.
The program, launched in 2023, helps shield vulnerable herders from the economic impact of worsening droughts.
The project is part of a broader strategy to strengthen climate resilience across the Horn of Africa.
Innovative Finance for Fragile Communities
DRIVE, short for De-risking, Inclusion and Value Enhancement of Pastoral Economies, uses innovative tools to protect livelihoods.
These include Index-Based Livestock Insurance (IBLI), which pays herders when drought thresholds are triggered.
So far, the project has reached over 130,000 Somali pastoralists with insurance and access to savings accounts.
IBLI reduces the need for emergency humanitarian aid by offering early financial relief, preventing distress livestock sales or long-term poverty.
World Bank Expands Climate Insurance for Somali Herders
Backed by Trusted Local Institutions
The initiative is delivered in partnership with Salaam Somali Bank and ZEP-RE, a COMESA-established reinsurer.
This local-global model combines international funding with on-the-ground expertise.
Abdirahman Sharif, World Bank Country Director, highlighted the importance of collaboration.
“By working with trusted local partners like SSB, we ensure that support reaches those who need it most,” he said.
The approach has also helped build trust in formal financial systems among pastoralist communities traditionally underserved by banks.
Climate Risk Meets Urgency
Somalia faces the harshest drought in four decades. Over 80% of the population is at risk due to climate shocks.
Livestock—the backbone of Somalia’s economy—accounts for 60% of GDP and 80% of exports.
Without interventions like DRIVE, droughts would erase decades of economic progress for nomadic families.
Salaam Somali Bank’s MD, Said Moallim Abukar, emphasized the project’s broader significance.
“This is not just about insurance,” he said. “It’s about building a more resilient financial system in Somalia.”
Scaling Impact in 2025 and Beyond
This year, the project aims to enroll another 20,000 pastoralists.
More partnerships are being explored to extend coverage across other drought-prone regions in Somalia.
DRIVE is also contributing to data collection that can inform future climate and financial policies.
Empowering the Frontlines of the Climate Crisis
By fusing technology, finance, and local leadership, the DRIVE Project is changing the way aid reaches those on the climate frontlines.
It’s not just about surviving disasters—it’s about helping communities adapt, grow, and thrive despite them.
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