ABSTRACT
Natural catastrophes caused by climate change harm an estimated 200 million people worldwide. Droughts, flooding, pollution and other meteorological phenomena pose a particular hazard to developing countries such as Namibia, which lack the resources to deal with them. The poor and marginalised are the most vulnerable within those countries, as climate change increases the cost of food, poses health risks from waterborne disease and extreme weather (particularly in areas with poor infrastructure and sanitation) and limits farmers' ability to create and maintain sustainable livelihoods. The impoverished are ill-equipped to deal with the financial shocks that come with harsh weather. Farmers in Namibia have consistently tried to adjust to weather fluctuations by modifying irrigation and crop choices but only recovered minimal lost revenues. Farmers may be unable to adjust successfully to the negative effects of climate change due to significant financial hurdles. Farmers, for example, may not have the funds or credit to invest in more hardy seeds or irrigation technologies. Furthermore, they may lack access to cheap insurance policies that might help offset losses caused by extreme weather. As the effects of climate change become more severe, it is vital to assist the poor in adapting to these problems and empowering them to lessen their environmental impact. This chapter will explore ways in which financial services and products may address the threats that climate change poses to the poor in Namibia.
