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More than USD 29 million has been mobilised to support Madagascar’s response and recovery following tropical cyclones Fytia and Gezani through a combination of pre-arranged financing solutions facilitated by the African Risk Capacity (ARC) and partner institutions.
This financing was activated through three complementary instruments established in advance: Madagascar’s sovereign parametric insurance coverage, replica insurance supporting humanitarian partners and additional resources mobilised through the Regional Emergency Preparedness and Access to Inclusive Recovery (REPAIR) programme. Together, these mechanisms have enabled a coordinated financial response to the cyclones’ impact.
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The government first drew on USD 19.9 million from the REPAIR programme’s reserve, a World Bank initiative implemented by ARC Ltd that provides countries with rapid access to financing to support early response efforts following severe climate events.
The severity of the cyclones also triggered ARC’s sovereign parametric insurance coverage, releasing approximately USD 5.6 million, while USD 3.79 million was mobilised through replica insurance supporting humanitarian partners.
This sequence illustrates how layered disaster risk financing can provide both rapid initial liquidity and additional protection when climate shocks exceed certain thresholds, strengthening countries’ financial resilience to increasingly complex climate risks.
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Madagascar is among the African countries most exposed to tropical cyclones and climate-related disasters. Strengthening financial preparedness and access to rapid-response financing has become an increasingly important component of national disaster risk management strategies across the continent.
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