Countries in the Horn of Africa (HoA) are vulnerable to climatic shocks and their impact can have a devastating effect on agricultural production. The most vulnerable regions are arid and semi-arid areas that receive low rainfall and depend on pastoralism as the main economic activity. Elevated levels of food insecurity and conflict resulting from increased competition for pasture and water among pastoral communities is a concern for governments of HoA countries.

Strategies for increasing resilience need to be customized to different sub-regions and microclimates. Initiated in 2019, The Horn of Africa Initiative brings together 6 countries – Djibouti, Kenya, Ethiopia, Eritrea, Somalia and Sudan – to deepen economic integration and promote regional cooperation. The countries agreed that regional cooperation and economic integration should remain key to the overall recovery efforts of the sub-region.

The project described here focused on “Identifying Climate-Smart Digital Opportunities with Scaling Potential under the Horn of Africa Initiative”.

The findings in this report will contribute towards achieving the objectives of the HoA programme, which include:

1. Strengthening the resilience of pastoral and agro-pastoral production systems to climate change

2. Enhancing agribusiness and enterprise across value chains

3. Strengthening climate services and applications for enhanced adaptive capacity

This report was intended to contribute to the project design by ensuring that activities supporting investments under the HoA programme maximize complementarity around the application of digital technology to ensure efficiency, quality and real-time exchange of data, advisories and related services.

The report was also designed to produce a number of recommendations towards the identification of climate-smart digital opportunities; for example, the importance of establishing strong coordination mechanisms to implement digital solutions at a regional scale.

An in-depth understanding of the existing climate-smart digital opportunities with scaling potential under the HoA Initiative, including (but not limited to):

• Emerging insurance innovations

• Mainstreaming digital solutions to climate risk finance into country programmes

• Application of digital technology to solve challenges in delivering agricultural insurance

• Critical success factors for a successful regional drought insurance scheme

The output of this report advances the objectives of the Africa Adaptation Acceleration Programme (AAAP) of GCA and the African Development Bank, which was developed to help implement the vision of the Africa Union’s Adaptation Initiative. To accelerate adaptation, the AAAP will use a triple-win approach and implement climate resilience activities that address COVID-19, climate change and the economy. AAAP intends to mobilize over US$25 billion to support adaptation between 2020–2025.