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reliefweb - 29 days ago

Multiple benefits of DRR investment: Reducing risk and building resilience in Sub-Saharan Africa - Angola

Country: Angola Source: UN Office for Disaster Risk Reduction Executive Summary This study aims at quantifying the multiple benefits of disaster risk reduction (DRR) investments and building a knowledge base for risk-informed decision-making on DRR investment in Angola. The present report describes the methods of direct and indirect benefit assessment and their application to flood and drought risk management and is released as part of the project Building Disaster Resilience to Natural Hazards in Sub-Saharan African Regions, Countries and Communities . For the direct benefit assessment, a multi-model analysis showed that the existing multi-purpose dams have flood regulating benefits, reducing the annual average losses (AAL) of floods by approximately US$ 6 million in Angola. When combined with the additional benefit of power generation, the indicative benefit cost (BC) ratio was estimated at 1.12 using a discount rate of 7%. Additional direct benefits included drought tolerant and shorter-cycle varieties of Maize, with the potential of reducing drought AAL from the original level of US$ 12.7 million to US$ 1.1 million and US$ 3.9 million, respectively. When combined with the yield enhancement potential due to the introduction of new seed varieties, the indicative BC ratio for these two DRR investment options are estimated at 2.52 (drought tolerant variety) and 2.48 (shorter-cycle variety), respectively, using a discount rate of 7%. Within the indirect benefit assessment, DRR investment implied multiple benefits beyond a mere reduction of disaster damage. When compared to the reference scenario, the DRR policy scenario (in which additional multi-purpose dams are constructed) reduced the damage to productive capital while fostering a safer environment that promoted savings and investment, leading to the creation of more productive capital such as buildings and machinery. When taking into account the co-benefits in terms of additional power production and better access to water, DRR investment is estimated to accelerate GDP growth. The Total Growth Effect (TGE) of this DRR investment is estimated at 8.5% of GDP at period 30. Similarly, the indirect benefit assessment of improved crop varieties underscored the potential for DRR investment to foster national economic growth. The TGE of drought risk reduction policy is estimated at 3.6 % at period 30 for the 40% improved variety scenario and 4.5% of GDP for the 60% improved variety scenario. The indirect benefit analysis provides substantial evidence that in addition to reducing the immediate impact of disasters (e.g., loss of lives and destruction of capital assets), DRR investment helps cultivate a safer environment where undamaged infrastructure and productive assets enable future earnings and promote further investment.


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