Donors could assist in clarifying the role, building the capacity, and potentially helping to secure funding of key disaster risk management organizations in Ghana. The Government of Ghana established the National Disaster Management Organization (NADMO)in 1996. However, since then it has had difficulties in securing sufficient funding (amounting considerable debt) and achieving its objectives. Assistance could be provided to clarify the role that such funds will play and what the role of private insurance would be in order to avoid public funds crowding out the development of a domestic private insurance market. Capacity building exercises could also be conducted as well as potentially funding specific projects undertaken by NADMO.
There may be however opportunities for targeted investments in the northern part of the country more prone to drought, aimed at increasing disaster resilience among vulnerable populations using market-mediated solutions. Links could be explored between social welfare programs and market-mediated
insurance solutions. For example, the government plans to expand the coverage of the Livelihood Empowerment Against Poverty Program (LEAP)by over ten-fold in the next three years. These mechanisms could scale up programs against post-flood events or drought events in the north.
Donors could support the integration of market-mediated insurance solutions within the social welfare
programs. Using local insurance capacity to bear some of the risks and develop the insurance products
could also be investigated. Such mechanisms delivered through social welfare programs would create a
critical mass of policyholders, which could spur the development of commercial agriculture insurance.