Recovering from Financial Implications of Flood Impacts—The Role of Risk Transfer in the West African Context

Simon Wagner, Sophie Thiam, Nadège I. P. Dossoumou, Michael Hagenlocher, Maxime Souvignet and Jakob Rhyner
Additional contact information
Simon Wagner: Agricultural Faculty, University of Bonn, Meckenheimer Allee 174, 53115 Bonn, Germany
Sophie Thiam: Center for Development Research (ZEF), Zentrum für Entwicklungsforschung, Genscherallee 3, 53113 Bonn, Germany
Nadège I. P. Dossoumou: West African Science Service Center on Climate Change and Adapted Land Use (WASCAL), Lomé P.O. Box 1515, Togo
Michael Hagenlocher: Institute for Environment and Human Security (UNU-EHS), United Nations University, Platz der Vereinten Nationen 1, 53113 Bonn, Germany
Maxime Souvignet: Institute for Environment and Human Security (UNU-EHS), United Nations University, Platz der Vereinten Nationen 1, 53113 Bonn, Germany
Jakob Rhyner: Agricultural Faculty, University of Bonn, Meckenheimer Allee 174, 53115 Bonn, Germany

Sustainability, 2022, vol. 14, issue 14, 1-20

Abstract: In many West African river basins, households regularly experience floods and the associated impacts. In the absence of widely accessible formal risk transfer mechanisms (e.g., insurance), households often have to cope with financial impacts. Only a few studies have explored the financial effects of floods on agriculture-dependent households in the region and the role formal and informal risk transfer plays in their mitigation. This study addresses this gap, explores flood impacts with financial implications for households, and researches the existing strategies to mitigate them. Moreover, it aims to better understand how different measures influence the recovery process. The study draws on primary data from a household survey (n = 744) in the Lower Mono River basin, combined with stakeholder workshops and semi-structured interviews, and applies a generalized linear model to the survey data. The results reveal four flood impact types with financial implications: agricultural, material, health, and trade. Moreover, a shortened recovery time is significantly associated with assistance from savings groups and cooperatives—groups originally not formed to help during floods. In light of the severe and frequent flood impacts, effective and publicly accepted adaptation measures are needed to enable favorable conditions for creating sustainable and accessible risk transfer mechanisms.

Keywords: financial; flood impacts; households; risk transfer; coping; insurance; recovery; Togo; Benin (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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