DRIVE is a regional financial intervention project being implemented in four Horn of Africa (HoA) countries as part of building resilience to climatic shocks, facilitating trade and supporting livestock value chains within the rangelands. The project objective is to protect pastoral economies against drought risk, increase financial inclusion of pastoralists and better connect them to markets and to facilitate livestock trade and upgrade livestock value chains by mobilizing private investments. The project has two components: one is to support the provision of an integrated package of financial services to build climate resilience including drought index insurance, savings incentives and manage digital payment, and the other is to better include pastoralists in the livestock value chains and facilitate trade and de-risk private investments in the livestock value chains. The project supports four priority areas including: pasture production and conservation, livestock breeding of cattle, sheep and goats, lives tock finishing and value addition. To ensure sustainability, the project is private sector led, with regional implementation via local private sector players and international reinsurers, that are constituting pastoralist groups around economic activities to have access to products and services for ownership and alignment to the project objectives. Extensive lessons were learnt from current and previous drought schemes. So far, 186,903 small scale pastoralists have bought USD 4.08 million worth of insurance premiums covering 673,986 Tropical Livestock Units (TLUs), and fourteen private sector investments worth USD 8.9 million have been approved for financing. The project has made livestock insurance payouts of USD 4.94 million to the pastoralists via mobile money transfers.
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