About DRIVE
Horn of Africa De-risking, Inclusion and Value Enhancement Project
The DRIVE Project
The Challenge
The Horn of Africa, stretching from northern Kenya and Somalia to southern Ethiopia, contains the largest population of pastoralists in the world. It is experiencing its worst drought in four decades – devastating agricultural production, destroying crops, and killing more than three million livestock.
The Solution
DRIVE is a $360.5m project funded by the World Bank and partners, established to enhance pastoralists' access to financial services for drought mitigation, include them in value chains, and facilitate livestock trade in the Horn of Africa.
Project Impact Goals
- 1Impact more than 1.6 million pastoralists from 2,500 pastoralist groups
- 2Enable the region to adapt to climate change impacts
- 3Commercialize livestock production in pastoralist communities
- 4Ensure inclusion of marginalized groups, including women
Project Components
DRIVE is structured into two main components addressing different aspects of pastoralist challenges
Component 1: Financial Services for Climate Resilience
Designing and provisioning pastoralists in Kenya, Ethiopia, and Somalia integrated package of financial services
Key Features
- Building the capacity of the countries' stakeholders and drought insurance awareness
- Designing a sovereign climate insurance policy to be acquired by Djibouti for government protection
- Integrated financial services package for climate resilience
Project Targets
- 1.6 million pastoralists and their dependants covered by financial services
- 2,500 pastoralist groups supported and connected to markets
- 80% of pastoralists in target areas receive training on financial products
- $72 million private capital mobilized through de-risk facility
Component 2: Livestock Value Chains and Trade Facilitation
Upgrading quality infrastructure to ensure compliance of livestock and livestock products with international standards
Key Features
- Building capacity of agencies in charge of quality infrastructure
- Supporting Mutual Recognition Agreements in Horn of Africa
- Supporting trade facilitation and trade logistics
- Establishing facility to de-risk private investment in livestock value chains
Project Targets
- $72 million private capital mobilized through the facility
- 700 National Quality Infrastructure (NQI) professionals trained
- 20 trade facilitation measures supported
- Enhanced livestock product compliance with international standards
Our Role as ZEP-RE
As the reinsurance company for COMESA, ZEP-RE was appointed to implement Component 1 of DRIVE. This assists in fostering cooperation between the four Horn of Africa member countries, helping them pool their drought risk and lower operational and premium costs for insurers.
Project Management
Coordinate and implement the project on behalf of the countries in line with the World Bank standards
Product Design
Review and customise insurance and savings products for a range of contexts, in consultation with stakeholders in different countries
Country and Stakeholder Engagement
Facilitate an engaging policy environment and partnerships across the financial sectors
Awareness Building
Advance deeper understanding and appreciation of IBLI across the livestock value chain in collaboration with appointed implementing agencies
Fiduciary Management
Fiduciary role in line with the World Bank financial management procurement and environment and social standards
Distribution
Leverage technology to optimise distribution and increase access and reach
Monitoring and Evaluation, Knowledge Management
Support monitoring evaluation procedures and capturing lessons learnt and success stories
Join the DRIVE Initiative
Be part of transforming lives across the Horn of Africa through innovative financial services and livestock value chain development.