Since 2014 and over four risk pools, ARC Ltd has paid out US $64 million to countries affected by drought.
The Government of Madagascar received on July 2nd a symbolic cheque in the amount of USD 2,13 million from the African Risk Capacity Insurance Company Limited (ARC Ltd) to cover anticipated losses to livelihoods of its vulnerable population from the crop failure in the just concluded farming season.
he African Risk Capacity Insurance Company Limited (ARC Ltd) today made payouts of USD 1.4 million to the Government of Zimbabwe and another US$ 290,288 to UN World Food Programme (WFP), in parametric drought risk insurance payouts to support the extensive drought response efforts in Zimbabwe.
ARC Ltd disbursed US $2.4 million to the Government of Mauritania, which paid a premium of US $1.4 million for drought coverage. The ARC Ltd payment was the first international funding the Government of Mauritania received in response to a progressively severe drought, and the funds subsidized livestock feed for pastoralists in the most affected areas.
In 2017, Malawi received a US $8.1 million payout from ARC Ltd and had paid a premium of US $4.7 million for drought coverage. The Government of Malawi used the funds to support over 800,000 Malawians by filling gaps in the scale-up on cash transfers and replenishing its strategic grain reserves.
We were able to eat just one meal a day. However, we are now able to eat twice a day with this assistance.
Enegentsi Mitha, 70 years old with 5 grandchildren
We would have had a huge problem this year without the extra assistance. There would have been no food and it would have been difficult to continue sending our children to school.
Holesi Kalonga, 72 years old with a household of 10 people
Three countries in the Sahel – Mauritania, Niger and Senegal – received a US $26.3 million payout from ARC Ltd. The governments paid a combined premium of US $8 million for drought insurance coverage, and the payout benefitted an estimated 1.3 million people and over half a million livestock. The funds, disbursed ahead of the UN appeal, were used to deliver quick and much-needed relief to affected populations.
Senegal received US $16.5 million for food distribution and animal feed subsidies. 927,416 people were assisted and 600,000 cattle were fed. Over 3,200 metric tonnes of food were pre-positioned in food insecure areas, and 14,180 metric tonnes of cattle feed were provided in joint efforts with six local companies.
Mauritania received US $6.3 million for food distribution to families in food insecure areas, serving 250,000 people whose livelihoods were sensitive to climate impacts. 11,000 metric tonnes of rice were procured from local suppliers to provide rapid assistance to vulnerable households.
Niger received US $3.5 million for conditional cash transfers and food distribution to support vulnerable families in drought-affected areas. In total, 157,000 people were assisted with ARC-funded interventions: 115,000 received cash support and 42,000 people benefited from rice distribution.