The UN Resident and Humanitarian Coordinator to Zimbabwe His Excellency Mr Edward Kallon (top Picture) and Professor Mthuli Ncube Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion (File Photos)
By George Swarei
Harare, Zimbabwe – At a pivotal ceremony on July 4, 2024, held at the Monomotapa Hotel, His Excellency Mr. Edward Kallon, the UN Resident and Humanitarian Coordinator, and Honourable Professor Mthuli Ncube, Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion, underscored the critical role of the African Risk Capacity (ARC) drought insurance payouts in mitigating the severe impacts of climate-induced droughts on Zimbabwe’s small farmers and SMEs.
Attended by notable figures including Dr. Anthony Mathae Maruping, ARC Group Board Chair, the event emphasized the importance of insurance in safeguarding small farmers and SMEs against climate-induced adversities.
“I am very pleased to officiate at this long-awaited handover ceremony of the drought insurance payout cheque by the African Risk Capacity (ARC) Group,” said Professor Ncube. “The payout is a result of joint efforts by the Government, UN World Food Programme (WFP), and Start Network, who participated in the sovereign insurance risk pool for the 2023/2024 agricultural season. This ceremony marks a monumental occasion in our endeavors to mitigate the negative impacts of drought and to solidify our nation’s resilience against climate-induced adversities.”
Mr. Kallon highlighted the severe impact of El Niño-induced droughts on millions of farming households in Zimbabwe, stressing the vulnerability of small farmers and SMEs. He praised ARC for providing timely financial assistance, which helps these crucial sectors recover swiftly and maintain their operations.
“Embracing the ‘Build Back Better’ paradigm is essential,” Mr. Kallon stated, referring to the Sendai Framework for Disaster Risk Reduction. He stressed the need for comprehensive insurance schemes, strengthened early warning systems, and capacity building to foster resilience and safeguard developmental gains.
Professor Ncube provided background on Zimbabwe’s engagement with ARC, noting that the country became a member in 2012. “The Agency offers innovative disaster risk financing solutions and assists member states in developing contingent measures for natural disasters, enabling countries to strengthen their disaster risk management systems and access rapid and predictable financing in the event of a disaster,” he explained. This motivated Zimbabwe’s participation in the ARC drought insurance risk pool, with the country receiving significant payouts in past seasons to support vulnerable households.
The payout ceremony saw the disbursement of approximately US$32 million, benefiting the Government of Zimbabwe, the World Food Programme (WFP), and the Start Network. This financial support aims to bolster ongoing drought mitigation efforts and enhance food security and livelihoods.
“I am honoured to receive the ARC drought insurance payout amounting to $16.8 million on behalf of the Government of Zimbabwe,” Professor Ncube announced. “This payout, along with $6.1 million to the WFP and $8.9 million to Start Network, will be distributed to approximately 508,435 vulnerable households in 27 districts across the country.”
Mr. Kallon concluded by urging for a holistic approach to Disaster Risk Management, emphasizing the importance of prevention, mitigation, and political engagement to embed insurance in national strategies and budgets. He reaffirmed the UN’s commitment to supporting Zimbabwe’s sustainable development and resilience against climate-related hazards.
The event highlighted the collective efforts of the government, UN, and development partners in strengthening Zimbabwe’s disaster risk management framework and ensuring a sustainable future for its agricultural sector. Professor Ncube expressed gratitude to various development partners and commended the ARC for their innovative products, confident that these measures would significantly mitigate the effects of natural disasters.
