Coopbank and UNDP Sign MoU to Strengthen Climate Risk Management in Agriculture
The Cooperative Bank of Oromia (Coopbank) and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) to strengthen climate risk management in Ethiopia’s agricultural sector through innovative financial solutions.
The partnership aims to bridge the agricultural financing gap by embedding climate insurance into Coopbank’s lending operations, thereby enhancing resilience for smallholder farmers facing climate-related shocks.
Under the agreement, UNDP will provide technical assistance including the establishment of a dedicated Insurance Desk at the bank, climate risk analytics for loan portfolios, co-design and piloting of credit-linked insurance products, capital mobilization support, and capacity building in climate risk and insurance product development.
Speaking at the signing ceremony, Coopbank CEO Mr. Deribie Asfaw highlighted the importance of the partnership in leveraging UNDP’s global expertise to strengthen financial inclusion and expand support for farmers across Ethiopia. The initiative, supported by UNDP’s Insurance and Risk Finance Facility (IRFF) under the Financial Resilience in Agriculture (FRA) program, represents a key step toward integrating insurance into agricultural lending and building a more climate-resilient agricultural finance system in Ethiopia.