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Monday, June 17, 2024

Zimbabwe to receive US$32 million drought insurance payout

Story by Yolanda Moyo

AS the government continues to implement various strategies to mitigate the impact of the El-induced drought, Zimbabwe is set to receive a US$32 million payout from the African Union Climate Insurance Agency, Africa Risk Capacity (ARC).

This was revealed by the Minister of Finance Economic Development and Investment Promotion, Professor Mthuli Ncube.

The payout is part of a larger $60 million insurance package offered by the ARC agency to four Southern African nations impacted by the El Niño weather pattern.

“Last year, we took insurance as a country and will be receiving a payout of US$32 million soon. We will then distribute to those who are affected heavily by this drought situation in the form of cash transfers in both urban and rural areas. The government has taken a different approach in dealing with the drought situation. First, we opened borders to allow those with free funds to import grain or the finished product. Secondly, by declaring a state of disaster, President Mnangangwa has allowed well-wishers to donate to the country. As the government, we will be importing some food to give to our citizens,” said Professor Mthuli Ncube.

The government is set to commence the distribution of cash to urban households who have been identified as being food insecure by the recently concluded 2024 ZimLAC Urban Livelihoods and Nutrition Assessments.

The Minister of Public Service, Labour and Social Welfare, Honourable July Moyo said, “1.7 million people need assistance in urban areas. We will be working with the same social partners to assist. Millers and other shops are guaranteed that the market forces will be working very properly because the government last year allowed the importation of food by the private sector.”

Zimbabwe’s decision to partake in the ARC insurance scheme demonstrates the government’s commitment to building resilience against climate shocks.

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