By Israel Muchena
Climate risks continue to pose a threat to financial markets, communities and economic activity across Africa. We have seen an increasing number of extreme climatic events, such as cyclones, flooding and droughts, that have adversely affected communities, farmers and businesses. In many cases, the lack of adequate mechanisms to manage these risks has resulted in avoidable human suffering, widespread destruction of property and significant disruption to economic activity.
While these events highlight the growing need for effective climate risk management, they also raise important questions about how we can work together to strengthen our collective response. Managing these risks calls for coordinated action at every level of society, from government and national institutions (Macro) to groups and communities (Meso) as well as individuals and businesses (Micro).
This conversation was at the heart of the discussion Macro, Meso & Micro Interventions in Climate Risk Management, at the recent 48th OESAI Annual Conference & AGM in Maputo.
Effective climate risk management requires the application of risk control strategies at all levels of society. At the macro or national level, this means effective policies, public financing and national risk-management mechanisms. At the meso level, it means stronger institutions, partnerships and risk-transfer solutions. And at the micro level, it means accessible insurance solutions that reach the people and businesses most exposed to climate risks. For these interventions to be effective, they need to work as one connected system.
From national strategies to accessible protection
National strategies and risk-financing mechanisms need to translate into stronger institutions, effective partnerships and accessible protection for the people and businesses most exposed to climate-related risks.
From sovereign risk financing to digital agricultural insurance solutions, closing the protection gap requires macro, meso and micro interventions to work together.
This is particularly important in agriculture. In Mozambique, the PEDSA strategy for the development of the agricultural sector is designed to increase productivity, drive greater production and improve access to markets for producers.
Achieving these ambitions also depends on how effectively climate-related risks are understood and managed. The emerging 2026–2027 El Niño weather phenomenon adds further urgency, with Southern Africa exposed to the risk of extraordinary conditions that could affect crop production and farming activity across the region.
This reinforces the importance of better data, coordinated risk management and ensuring that appropriate protection mechanisms reach farmers and businesses before climate-related risks translate into significant losses.
Agricultural development has to consider the risks faced by farmers. This means that every discussion should consider the experiences of the past, where farmers had little or no protection from climatic challenges, and it needs to identify what must improve to better mitigate risk.
We have to draw together lessons and perspectives from across the region and explore practical approaches to address climate risk across Africa. There is a need for a more coordinated and more connected approach to risk management across the region, at the different levels of intervention.
Better data must lead to better decisions
Improved technology, stronger data and cross-sector collaboration can help African insurance markets better understand catastrophe exposure and strengthen long-term preparedness across sectors. Technology can help us move from reactive measures to informed, evidence-based decisions that protect businesses and vulnerable communities.
There is also an opportunity to act now in leveraging Artificial Intelligence (AI) for decision making, to move from setting ideals into action and to keep pace with the rest of the world in the adoption of this emerging technology. Africa needs to explore how we can combine silicon intelligence with human know-how to create something bigger as we think about how technology can support better decision-making.
Strengthening the system through connection
Risk does not exist in isolation; it exists in a connected ecosystem. Better data can support better decisions. Stronger institutions and partnerships can support better risk-transfer solutions. Accessible insurance can help extend protection to the people and businesses most exposed.
In agriculture, this connection is particularly important if we want to support greater productivity, higher production, stronger markets and improved risk management for producers. There is a need to connect macro, meso and micro interventions as these do not operate separately, but as one connected system. This remains one of the most plausible ways in which we can close the protection gap and build stronger responses to climate-related risk across Africa.
