BY ZBC Reporter
More than 150 thousand vulnerable families are expected to benefit from a 1,5 million United States dollars financial injection for drought response activities.
Zimbabwe is increasingly becoming vulnerable to severe droughts resulting in treasury resorting to budget reallocations, donations, development partners, and insurance schemes to shield the people against negative effects of climate change.
The Africa Risk Capacity Insurance Company (ARC) announced during a virtual meeting on Thursday, that families from highly vulnerable communities of Buhera, UMP, Chivi, Binga, and Bulilima will be key beneficiaries of the facility through unconditional cash transfer allocations.
Finance and Economic Development Minister, Professor Mthuli Ncube said the resources are coming at the right time and will also be channelled towards providing relief to treasury currently strained by the demands of the Covid-19 pandemic.
“ I hereby commend the ARC for such innovative sovereign products and I am confident that these products will provide further instruments which governments can employ to mitigate against natural disasters,” said Prof Ncube.
Africa Risk Capacity offers innovative disaster risk financing solutions and helps member states to develop mitigation measures for natural disasters.
Zimbabwe took part in the purchase of the ARC drought insurance policy to provide relief packages and minimise the risk of drought.
The African Risk Capacity (ARC) 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.
Through collaboration and innovative finance, ARC enables countries to strengthen their disaster risk management systems and access rapid and predictable financing when disaster strikes to protect the food security and livelihoods of their vulnerable populations.
The African Risk Capacity is comprised of two entities: the African Risk Capacity Agency and the ARC Insurance Company Limited. Together, they provide ARC Member States with capacity building services and access to state-of-the-art early warning technology, contingency planning, and risk pooling and transfer facilities.
African Risk Capacity provides capacity building for and access to a comprehensive disaster risk management & financing system. Working closely with African governments, we implement efficient and sustainable solutions that address country needs.
Customised Early Warning-Africa Risk View is a state-of-the-art drought risk model & software that helps countries quantify their disaster risk & monitor drought impacts while Contingency Planning. African Risk Capacity works with governments and in-country experts to create coordinated contingency plans before catastrophe strikes.
The Parametric Insurance-African Risk Capacity disburses financing to fund pre-approved contingency plans to respond rapidly and predictably to disasters while Risk Pooling & Risk Transfer-Employing innovative financing mechanisms, ARC Insurance Company Limited pools risk across Africa and transfers it to international risk markets.