ERCS launches Forecast Based Financing

5 October 2018, Addis Ababa With the aim of better supporting people experiencing drought and flood, the Ethiopian Red Cross Society (ERCS), in partnership with the Netherlands Red Cross (NLRC), have established a ground-breaking forecast-based financing system based on early warning information. The Innovative Approach to Response Preparedness (IARP) which is supported by Data Preparedness and Cash Transfer Programming enables vulnerable communities to take early action following weather prediction to mitigate, reduce and avoid human suffering.

Investing in early preparedness and anticipatory action before a hazard hits will save both time and money, minimize loss and damages caused by climate related disasters which will significantly reduce the need for humanitarian assistance in the aftermath.

The project will be implemented by ERCS in close collaboration the National Disaster Risk Management Commission and the National Metrology Agency at a national level.

The NLRC, British Red Cross, Kenya Red Cross, Red Cross Red Crescent Climate Centre and 510-Global Initiative will provide technical support in the course of the implementation of the project. .

The project duration is from 2018 – 2022, and target the most vulnerable to the devastating effects of climate change, such as refugees and internally displaced people.