Forecast Based Financing
Modelling drought for early action in Madagascar.
In Madagascar, Start Network members are modelling and predicting drought in order to access funding and act early.
About Forecast Based Financing
With support from the Start Network, Welthungerhilfe Madagascar is building a scientific model that will:
- Identify when an agricultural and meteorological drought has occurred
- Predict the human impacts of the drought
- Release funding according to the severity of the drought
The model will be operational by the end of 2019 in 3 regions of Madagascar and in 2020 we hope to use this model to preposition funding within it, to allow the science to trigger the release fo funds when a drought is predicted.
We hope to achieve the following:
- Build a national financing mechanism that allows for multiple donors to fund various levels of risk
- Integrate local needs and risks scientific model
- Adopt a flexible contingency planning approach
- Create a continuum of risk financing - where different types of funding can be activated at different stages, depending on the type and timeline of a crisis.