Over $29 Million Payout for Madagascar After Cyclones Fytia and Gezani

More than US$29 million has been mobilized to support Madagascar’s response and recovery following tropical cyclones Fytia and Gezani. The cyclones which affected more than half a million people and displaced at least 67,000 also caused widespread damage to infrastructure, livelihoods, and essential services across several regions of the country.

The financing was activated through three complementary pre-arranged instruments. The government first drew on US$19.9 million from the Regional Emergency Preparedness and Access to Inclusive Recovery (REPAIR) program’s reserves, providing rapid access to financing to support early response efforts. REPAIR is a World Bank initiative, with financial support from Global Shield Financing Facility and African Risk Capacity (ARC) Ltd as an implementing partner. The severity of the cyclones also triggered ARC’s sovereign parametric insurance coverage, releasing approximately US$5.6 million. An additional US$3.79 million was mobilized through replica insurance supporting humanitarian partners. 

The sequential and coordinated financing response supported Madagascar to access resources and demonstrated how multiple pre-arranged financial layers can provide prompt initial liquidity and added protection when impact of climate shocks exceed certain thresholds. This helps strengthen financial resilience within countries facing increasingly complex climate risks.

Caroline Cerruti (Lead Financial Sector Specialist and REPAIR Regional Lead, World Bank Group) stated: "With REPAIR, the World Bank is committed to reinforcing the capacity of countries in the region to respond to severe climate events. These disbursements demonstrate how pre-arranged financing, coupled with strengthened operational systems, can provide the resources and frameworks required to respond to complex disasters. This coordinated approach is essential for transforming how the region manages climate shocks and protects affected communities.”

David Maslo (Chief Executive Officer, ARC Ltd), added: "Climate-related disasters require financing that can respond to different types of impact and at different moments of a crisis. The activations supporting Madagascar illustrate how combining complementary solutions can provide rapid initial liquidity while also ensuring sustained support for recovery. This is central to ARC’s mission to help countries strengthen their financial resilience to climate shocks."

Madagascar’s Minister of Economy and Finance, Dr. Ramiarison Herijantovo Aimé, stated that, "The rapid mobilisation of financing following these cyclones has provided important support to Madagascar’s national response. Continued collaboration with ARC, the World Bank and partners strengthens our capacity to respond effectively to disasters and support affected communities."

This activation represents an example of REPAIR’s layered financing architecture in practice, demonstrating how such financing can help channel resources to governments quickly, reducing reliance on ad hoc budget reallocations and enabling a more timely response to severe climate shocks.

Source of Quotes and Image: With thanks to article published by African Risk Capacity - Link here