The African Risk Capacity (ARC) Group has announced that it is targeting to serve 200 million people in Africa for the next period, as they help African governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters.
Addressing the media today in Victoria Falls the group Chief Executive Officer Lesly Ndlovu announced that they are increasing their financial capacity to cover more African countries as they cover them against natural disasters.
Zimbabwe which is a member of the group recently drew down $1 .7 Million last year .The African Risk Capacity Insurance Company Limited (ARC Ltd) today made payouts of USD 1.4 million to the Government of Zimbabwe and another US$ 290,288 to UN World Food Program (WFP), in parametric drought risk insurance payouts to support the extensive drought response efforts in Zimbabwe.
Mr Ndlovu said that ARC works with Governments to understand their risk profile and capacity building where necessary providing the risk transfer mechanism, their assurance company under the ARC underwrites and places the risk under the global international market.
While Africa predominantly is at higher risk to natural disasters like drought , the group noted that they also work with the global market as a fall back to cushion them against potential huge risk and the response to join from member states has been encouraging.
“Since inception, 35 African member states of the total 55 have already subscribed to the ARC insurance where a total of $100 million premiums have been paid already and $65 million has been paid out in terms of insurance claims,”.
Mr Ndlovu said that they have made good strides since inception and looking into signing more countries aboard , as some may have been delayed by bureaucratic processes while there was overwhelming interest from the continent .
The organization is also working with a donor community that is supporting their cause to continuously support various African countries .
Adding her voice on the latest developments , Emily Jones from World Food Program said that they are continuously making pro-active responses to mitigate natural disasters
“We have been in Zimbabwe since 2019, We are rolling out various pro- active programs
We are worried about the climate crisis which is coming up with food security and humanitarian needs to levels that are unprecedented. With ARC replica is one of the replica programs we support with contingency plan that compliments that of the government to increase the number of protected people in the country,” Ms Jones said
A total of 155 000 Zimbabweans have benefited from this past ARC -WFP program as they responded to Zimbabweans who fell victim to the last drought.
The ARC is currently covering insurance against drought and looking forward to cover against other natural disasters like floods and hurricanes.
The ARC works with government to understand their risk capacity to work a risk transfer mechanism for the countries
Created in 2012, the African Risk Capacity (ARC) Group is a Specialized Agency of the African Union established to help African governments improve their capacities to better plan, prepare, .and respond to extreme weather events and natural disasters.
Dr Veronika Bertram, their financial partner with KFW said that they have provided mostly granting to the organization to the tune of over $80 million as they continuously fund ARC group .