The West African Development Bank (BOAD) officially launched the Disaster Response Loan Program (PACAN) on Tuesday, 11 February 2025 in Lomé, a mechanism aimed at strengthening the resilience of UEMOA countries to climate and health crises.
Under this project, Togo is the first beneficiary with a grant of €66 million, disbursed in November 2024, following major floods in some areas of the country Financing and insurance mechanism PACAN is based on a combination of subsidized loans and parametric insurance, allowing states to raise funds without using their limited budgetary resources “This mechanism provides rapid budget support to meet the urgent needs of the population in the event of a disaster,” stressed Moustapha Ben-Barka, Vice President of BOAD, during the launch
Currently in the pilot phase in four countries (Togo, Benin, Côte d’Ivoire, Senegal), the system is based on a loan portfolio worth $350 million (FCFA 206 billion) The project was developed in partnership with KfW, the Frankfurt School of Finance, Munich Re and African Risk Capacity Ltd (Arc Ltd) Leveraging economic resilience Present at the launch, Colonel Baka Yoma, Director of the National Civil Protection Agency (ANPC) of Togo, welcomed the initiative, highlighting its impact on the rapid and sustainable reconstruction of infrastructure affected by floods.
Following Togo, BOAD plans to roll out the demonstration program in other pilot countries to promote this financing solution for climate risks
