By Lisca Philo
Following an El-Nino induced drought that hit the Southern African region in the 2023-2024 agricultural season, on April 3, President Emmerson Mnangagwa declared the season a State of National Disaster and appealed to stakeholders to come on board to ensure that Zimbabwe is food secure.
1,7 million hectares that had been planted maize and other cereals, which would have guaranteed bountiful harvest, were ravaged by the unprecedent heat and low rainfall.
Since the announcement, there has been significant response with local and international stakeholders coming on board to bail the country during this difficult time.
On 4 July 2024, the African Risk Capacity Insurance Company Limited (ARC Ltd) stepped in with a whooping US 16, 8 million given to the government of Zimbabwe being a drought insurance payout meant to cushion the citizens.
The ARC also allocated US6,1 million to the World Food Program and US$8.9million to Start Network.
The ceremony was attended by a highly powerful delegation that included f diplomats, government officials, NGOs, members of the media, among others.
According to Prof Mthuli Ncube, Zimbabwe’s Finance and Economic Planning minister, the payout will help 509 thousand households in 27 districts nationwide who have been affected affected by the climate disasters.
This financial injection is there to bolster the country’s capacity to mitigate the effects of drought on vulnerable communities.
The funds are part of parametric drought risk insurance payouts, designed to kick in when specific predefined conditions (such as drought severity) are met.
The ARC’s proactive approach demonstrates the importance of risk management and preparedness.
The ARC Group Chairperson H. E Dr Anthony Maruping applauded the Zimbabwean government in their decision to partner with ARC Group to mitigate impacts of drought in Zimbabwe.
Furthermore, the CEO of ARC Lesley Ndlovu said “We are deeply honoured to partner with the Zimbabwe Government and with different organizations during this time of crisis. The lnsurance payouts are testament of the value of ARC instrument in facilitating response”.
Through collaboration and innovative financing, the ARC Group 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.
Zimbabwe’s participation in ARC climate risk insurance was made possible by an insurance premium paid in part by the government, with premium support contribution from the Swiss Agency for Development and Corporation (SDC); the KfW Premium Finance Facility; and the Africa Disaster Risk Financing Programme Multi-Donor Trust Fund (ADRiFi-MDTF). The ADRiFi-MDTF is a framework developed as a collaboration between the African Development Bank and the ARC Group.
