World Bank’s DRIVE Project, an Index-Based Livestock Insurance (IBLI) scheme, launched last year in collaboration with financial institutions including Salaam Somali Bank (SSB) and ZEP-RE, has provided insurance and transaction/savings accounts to over 130,000 Somali pastoralists.
Launched to help Somali pastoralists recover from droughts, protecting the livestock that their livelihoods depend on, the IBLI scheme offers payouts during severe droughts, giving herders a financial lifeline.
According to Abdirahman Sharif, World Bank, Country Director, “We are proud to continue our partnership with SSB on the DRIVE Project. By working with a trusted local partner like SSB, we’re able to tap into their intimate knowledge of pastoralist communities, their needs, and how to reach them. Thanks to this local-first approach, we’re able to have a real impact on communities extremely vulnerable to the effects of climate change. This new phase 2 commitment underscores the World Bank/ZEP-RE’s commitment to climate resilience and economic stability in Somalia.”
With Somalia facing continues drought in 40 years, this financial scheme is vital. According to the UN, over 80% of the country’s population is at risk, with livestock loss threatening the main source of income for millions.
The collaboration between the World Bank, ZEP-RE,insurance Companies, banks including SSB ensures these vulnerable communities are equipped with financial tools to withstand ongoing climate threats. The upcoming season will expand their reach, aiming to enroll further 20,000 pastoralists in 2025. The partnership highlights the need for climate-resilient financial solutions in the world’s most drought-prone regions.
“The success of Phase 1 demonstrated the power of collaboration to address Somalia’s unique challenges. By extending insurance coverage in the project, we’re building financial security for thousands more families,” said Salaam Somali Bank MD, Said Moallim Abukar. “This is just one of many investments needed for climate adaptation in Somalia and other Sub-Saharan nations on the frontline of the climate crisis. We’re proud to play our part in ensuring international funding reaches our nation’s most vulnerable.”
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