Somalia – The Somali Disaster Management Agency (SoDMA) has rolled out a landmark initiative aimed at strengthening community resilience against climate shocks. On Saturday, Commissioner Mahamuud Moallim officially launched the ARC Drought Payout Insurance project in Jalalaqsi, Hiiraan region.

The project, backed by the African Development Bank (AfDB) and the African Risk Capacity (ARC), is designed to cushion vulnerable households from the severe impact of recurrent droughts. It will directly benefit 2,009 families in Jalalaqsi and a total of 5,705 families across both Jalalaqsi and Balcad districts.

Somalia remains one of the countries most affected by climate change, where prolonged dry spells often lead to food insecurity, livestock losses, and mass displacement. The drought insurance payout mechanism is part of a broader strategy to provide immediate financial relief and reduce reliance on emergency aid.

Speaking at the launch, SoDMA emphasized that the program reflects the government’s commitment to finding sustainable, proactive solutions to climate-related disasters. By ensuring timely financial support to affected households, the initiative is expected to help families maintain livelihoods, recover faster, and build long-term resilience.

The AfDB and ARC’s support underscores growing international efforts to assist Somalia in managing climate risks through innovative financial tools. Local authorities in Hiiraan and Middle Shabelle have welcomed the project, describing it as a timely lifeline for drought-prone communities.

This marks one of the first large-scale insurance-based interventions in Somalia, signaling a shift towards risk management approaches rather than reactive crisis responses.