ARC Risk Pools

The African Risk Capacity risk pools aggregate risk from across the continent each season to take advantage of the natural diversity of weather systems across Africa. The risk pool then takes on the risk profile of the group rather than the risk profile of each individual country, combining the uncertainty of individual risks into a calculable risk for the group. 

Since it is unlikely that droughts, floods and tropical cyclones will occur in the same year in all parts of the continent, not every country participating in the pool will receive a payout in a given year. Because a continental risk pool’s exposure to covariant risk would be significantly smaller than a given country’s or region’s exposure, an ARC pool could manage climate risk with fewer funds than if each country financially prepared for its own worst case scenario individually.



The African Risk Capacity’s inaugural risk pool launched in 2014 and covered the 2014/2015 agricultural season. The risk pool consisted of four countries: Kenya, Mauritania, Niger, and Senegal. 

To join the ARC Risk Pool, countries must have approved Contingency Plans that stipulate how payouts would be utilized. The plans for each country are included below.

Kenya
Kenya Mauritania Niger Senegal

In response to a drought in West Africa, ARC paid out US $26 million to Senegal, Niger, and Mauritania. Read more about the payout and ARC’s successes in building resilience and safeguarding agricultural livelihoods.

Following the success of ARC’s first risk pool, ARC’s second risk pool included three new members. ARC’s risk pool for the 2015/2016 agricultural season included seven countries:

To join the ARC Risk Pool, countries must have approved Contingency Plans that stipulate how payouts would be utilized. The plans for each country are included below.

Kenya Mauritania Niger Senegal The Gambia Mali Malawi
Kenya Mauritania Niger Senegal The Gambia Mali Malawi

In response to the drought in Southern Africa, ARC paid out US $8.1 million to Malawi. Read more about the payout and ARC’s successes in building resilience and safeguarding agricultural livelihoods.

Entering its third year, ARC welcomed one new member, Burkina Faso, into its risk pool for the 2016/2017 agricultural season.

To join the ARC Risk Pool, countries must have approved Contingency Plans that stipulate how payouts would be utilized. The plans for each country are included below.

Burkina Faso Niger Senegal
Burkina Faso Niger Senegal The Gambia Mali Mauritania

In response to a drought in the Sahel, ARC disbursed US $2.4 million to Mauritania. Read more about the payout and ARC’s successes in building resilience and safeguarding pastoral livelihoods.

ARC’s risk pool covering the 2017/2018 agricultural season included five countries: Senegal, the Gambia, Mauritania, Burkina Faso, and Mali.

Burkina Faso Senegal
Burkina Faso Senegal The Gambia Mali Mauritania