Drought Financing Facility summary
07 November 2017
The purpose of this report is to give an overview of the way the Drought Financing Facility is designed, including two proposed pilots in Zimbabwe and Pakistan.
The Drought Financing Facility is based on a risk management approach that involves scientific modelling of drought risks, focused scenario-based contingency planning and ground monitoring, and pre-positioned financing.
The teams involved will monitor signs of emerging agricultural drought crises against pre-agreed indicators, which when reached, would prompt the automatic and predictable release of funds for early action.
The objective is to protect communities at risk of major droughts by deploying funds to organisations on the ground in a faster, more efficient way.
By intervening earlier, we hope to prevent losses and to reduce the amount of funding needed. We are aiming to have an anticipatory model that enables early, pre-planned and pre-financed responses that will save lives, livelihoods and costs.