Since GRiF formally moved into implementation phase in January 2019, the program has awarded over $110.8 million as of August 2020 of the $286.6 million pledged by Germany and the United Kingdom to support pre-arranged financial solutions and improve the quality of data and analytics in vulnerable countries. This is in addition to the $4.7 million awarded during the design pilot phase (February – October 2018) prior to its launch.
Nine projects were approved for $107.9 million. These include seven country grants to Afghanistan, Indonesia, Jamaica, Malawi, Morocco, Mozambique, Sierra Leone; one regional grant to strengthen financial resilience in Southeast Asia; and one global public goods grant for crisis risk analytics. Another $1.5 million grant was awarded in the pilot phase to support disaster risk financing and insurance in Sri Lanka and Maldives.
Exploration of new projects is ongoing in 11 countries for total expected grants of $121 million, 10 of which have scoping grants worth $2.15 million to explore feasibility for larger programs.
The map shows the geographical distribution the GRiF portfolio (specifically project grants approved) as of August 2020.
Crisis Risk Finance Analytics
This project supports the World Bank and GRiF in scaling up risk financing operations and impact with innovative risk information. It also selectively supports upstream analytical capacity to develop new risk financing operations for new perils or territories/countries, and contributes to building the foundation that will enable bringing scale to risk financing solutions for years to come. The project supports the World Bank–European Space Agency partnership for risk finance analytics as well as multi-hazard crisis risk analytics. The technical assistance provided under the project leverages innovative analytics, including Earth Observation remote sensing, big data, and predictive analytics to support global identification of risks; national and sectoral diagnostics; the development of objective, timely, reliable risk metrics and triggers; and innovative approaches to assess overlapping risks in complex situations.
Design of the Start Financing Facility – Supporting Humanitarian Financing Reform for NGOs
This project supports the design of a financial infrastructure with an operational NGO counterpart to deploy donor funds efficiently and effectively to frontline humanitarian NGOs, specifically by using blended approaches that combine pre-arranged funds and leverage insurance. The grant finances a bottom-up, participatory design process; the inception phase involves a stakeholder mapping and stocktaking exercise, as well as a detailed design and feasibility study. The financial architecture is intended to support NGOs, which typically rely on ex post funds to deliver humanitarian relief, in moving toward ex ante funding approaches.
Famine Early Action Mechanism
The primary objective of the Famine Early Action Mechanism (FAM) is to help drive global efforts to prevent and respond to famine risks. The GRiF grant provides financing for famine risk monitoring and analytics focused on identifying data that can be used for triggers for financial disbursements; the grant also supports a feasibility study on possible private sector financing solutions to mitigate famine risks. The project connects early warning indicators with existing and innovative financing solutions to promote fast and effective famine risk mitigation and response and pre-arranged implementation arrangements—mechanisms that are currently missing in the international space.
The Challenge Fund: Innovations in Risk Financing
This project aims to provide grants to projects that support the development of innovative risk financing mechanisms and align management actions with on-the-ground user needs. The project finances grants to develop innovative tools and approaches alongside capacity building of target beneficiaries. This Challenge Fund focuses on three thematic areas that are known to be challenges for DRF and that require innovative solutions: implementing early action in DRF, machine learning and big data for DRF, and DRF mechanisms to manage food insecurity.
The Challenge Fund: Applications of the Challenge Fund Open Data Framework
The objective of the project is to promote and expand the application and use of an open, standardized data schema for hazard, exposure, vulnerability, and loss data. The grant funds the demand-led development of the Risk Data Library, which makes user-ready data sets readily available so that risk experts can spend less time looking for data and more time working with it. The project is also building a global community of users. The project fills a gap identified by a Global Facility for Disaster Reduction and Recovery (GFDRR) and FCDO report, Solving the Puzzle: Innovating to Reduce Risk, which reveals that in many developing countries, the development of risk-reducing policies is constrained by the dearth of available data related to risk.
Global Risk Finance Capacity Strengthening Program
This project aims to support countries in implementing and scaling up comprehensive DRF strategies, including implementation of instruments cofinanced through GRiF, by embedding DRF Fellows in ministries of finance or other relevant ministries and departments in developing countries. The scoping grant finances exploratory conversations with relevant partners to understand the demand for such a program, review the experience of comparable initiatives, and propose an appropriate program design.
Assessing the Financial Impacts from Covid-19 and Disaster Shocks on Small and Medium Enterprises to Target Shock-Responsive Liquidity Support
The aim of this activity is to carry out an assessment of the financial impacts of COVID-19 and disaster shocks on small and medium enterprises in vulnerable countries and to use the findings to inform the design of financial and technical support programs to client countries. The GRiF grant finances the development of a framework and methodology for the assessment, a user-friendly model to quantify impact, and pilot testing in four countries. The activity will contribute to better understanding by client countries and World Bank teams of firms’ funding needs and gaps, so that economic recovery operations can be targeted and longer-term financial preparedness and risk management integrated into these operations.
Analytics for Preparing a Potential Water Liquidity Facility by Assessing the Financial Impacts of COVID-19 on Water Service Providers in Albania, Colombia, and Brazil
The objective of the project is to support water service providers in efforts to quantify the impact of the COVID-19 crisis and related emergency measures taken, explore options for improving their financial health, and build resilience for responding to future crises, including natural disasters. The activity will use the information from this exercise to explore the creation of a liquidity facility—at the national, regional, or global level—that would provide timely liquidity support to water service providers in ensuring continued delivery of service and in protecting against various risks and shocks in the future. The scoping grant finances impact assessments in Albania, Brazil, and Colombia; planning support to task teams at the country level; and the conceptual design of a liquidity global facility.
$5.5 million grant awarded to support the development of public goods on crisis risk finance. Activities financed through this grant will leverage satellite data, innovative technology, and analytics to create an enabling environment for improved risk management and risk financing.
$200,000 scoping grant awarded for the feasibility assessment and design of a Capacity Strengthening Program to provide flexible, customized, and real-time training to government officials on financial planning for emergencies. Another $200,000 scoping grant was awarded to support assessment of the financial impacts from COVID-19 and disaster shocks on small and medium enterprises to target shock-responsive liquidity support.
These grants join the analytical awards granted in 2018 during the design pilot phase of GRiF, which set up two Challenge Funds and supported analytical work in Armenia as well as work with the Famine Early Action Mechanism (FAM) and the Start Network.