South Africa Advised by World Bank on Climate Insurance, Contingency Fund Options

  • Country weighs climate insurance or contingency fund
  • Floods tied to climate change killed more than 450 in 2022

People walk through water and mud during heavy flooding near Somerset West, South Africa, in September 2023.

Photographer: Rodger Bosch/AFP/Getty Images
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The World Bank is advising South Africa’s National Treasury on a climate risk strategy after floods in recent years caused billions of dollars of damage.

The country may take out climate insurance or establish a contingency fund to deal with major adverse weather events, a person familiar with the matter said, asking not to be identified as a public announcement hasn’t been made. Municipalities could also be incentivized to invest in infrastructure and other measures to reduce the impact of unexpected weather events, the person said.