Adapted Loans for Natural Disasters Programme (PACAN)
OBJECTIVES:
To provide UEMOA member states with an innovative financial solution that combines concessional loans and parametric insurance, enabling effective crisis management while preserving investment capacity for climate adaptation and sustainable development.
Target countries:
Bénin, Côte d’Ivoire, Sénégal and Togo
Duration:
2024 to date
Budget:
Euros 10 million
INNOVATIVE FEATURES:
- Unique blend of concessional loans and parametric insurance covering part of states’ debt service in the event of natural disasters.
- Enables countries to conserve reserves for emergency aid and reconstruction rather than immediate loan repayment.
- Enhances fiscal flexibility and ensures borrower solvency.
- Exemplary public-private partnership between development banks and international insurers.
- Scalable and adaptable model for replication across Africa.
KEY OUTCOMES:
- First payout in December 2024: €6.6 million disbursed to cover Togo’s debt service following severe floods.
- Operational validation of the mechanism, proving effectiveness in disaster response.
- Strengthened capacity of countries to manage climate impacts without compromising development goals.
- Strong partner commitment to expand PACAN to other African countries.
MEDIA: