Drought insurance

The World Bank and the World Food Program are examining a scheme aimed at covering climatic hazards in Ethiopia where 85% of the population lives on farming. For the WFP, that spends 45% of the world food aid in Ethiopia, compensation - for a drought of the same scale as that of 1984- would amount to 1.6 billion USD.

For a first cover of 100 million USD, the premium would amount to 7 million USD.