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Lesotho’s Efforts to Mitigate Climate-Related Disaster Risks Through Risk Management in Finance

As climate-related disasters continue to wreak havoc on communities around the world, governments are being forced to rethink their approach to disaster risk financing (DRF). The Kingdom of Lesotho, a small country in Southern Africa, is no exception. Despite its vulnerability to droughts, heatwaves, and floods, Lesotho is taking steps to prepare for the impacts of climate-related disasters by incorporating DRF into its plans and budgets.

Shift from Reactive to Anticipatory Approaches

According to recent research, a significant shift has occurred in Lesotho’s disaster management landscape, moving from reactive to anticipatory approaches. This change is evident in the 2020 Disaster Risk Management Bill and the Memorandum of Understanding signed between the Government of Lesotho and the African Risk Capacity.

Key Areas of Focus

Two key areas of focus include:

  • Making two disaster contingency funds fit for anticipatory action
  • Developing shock-responsive social safety nets that can be scaled up and out

Efficiency and Effectiveness of DRF Payment Mechanisms

In addition, the country’s social protection programs are undergoing a transformation from manual cash transfers to digital cash transfers. This shift is expected to improve the efficiency and effectiveness of DRF payment mechanisms.

Topics for Further Research

Several topics remain ripe for further research in Lesotho:

  • Scaling out social protection safety nets for anticipatory action
  • Evaluating the outcomes of existing DRF payment mechanisms, including the timing of receipt

About the Research

This research was conducted as part of the Academic Alliance on Anticipatory Action (4As), a consortium of universities working to inform and enhance anticipatory action. The 4As Consortium is funded by USAID and led by Tufts University in partnership with:

  • Bangladesh University of Engineering and Technology
  • Eduardo Mondlane University in Mozambique
  • Makerere University in Uganda
  • National University of Lesotho
  • University of Namibia
  • University of the Philippines