US$32m to boost drought mitigatory efforts

Ivan Zhakata Herald Correspondent

AFRICAN Risk Capacity (ARC) Group has unveiled US$32 million to complement the ongoing drought mitigation and response efforts by the Government through the United Nations (UN) Flash Appeal programme.

Through the programme, Government received US$16,8 million, while US$6,1 million was given to the World Food Programme (WFP) and US$9 million went to Start Network.

Speaking at the African Risk Capacity 2023/24 drought insurance payout ceremony in Harare yesterday, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said the payout was a result of joint efforts by Government, the UN World Food Programme (WFP) and Start Network, who participated in the sovereign insurance risk pool for the 2023/2024 agricultural season.

Minister Ncube said the ceremony marked a monumental occasion in the country’s endeavours to mitigate the negative effects of drought and to solidify the nation’s resilience against climate-induced adversities.

He said Zimbabwe became a member of the African Risk Capacity (ARC) Agency in 2012.

“The Agency offers innovative disaster risk financing solutions and assists member states develop contingent measures for natural disasters, thus enabling countries to strengthen their disaster risk management systems, and to access rapid and predictable financing in the event of a disaster, thereby, ensuring food security and livelihoods of vulnerable populations,” Minister Ncube said.

“This motivated our participation in the ARC drought insurance risk pool for the 2019/20 agricultural season, where we paid a premium of US$1 million towards the ARC drought insurance cover. Incidentally, the drought experienced during the 2019/20 agricultural season triggered a payout amount of US$1,4 million which was extended to the Government, whilst the World Food Programme replica policy received US$290 000.

“Over 180 000 households in the highly vulnerable districts benefited from this payout. Since the 2019/20 agriculture season, we have not looked back and in collaboration with development partners namely KFW, Swiss Development Co-operation and Africa Development Bank, Government has been purchasing sovereign policies, complemented by Replica Policies from the World Food Programme and Start Network.”

Minister Ncube said the United Nations High Commission for Refugees (UNHCR) has expressed interest to become an ARC replica partner for Zimbabwe, bringing the number of replica partners to three, the highest in Africa.

“Indeed, this is a welcome development, as it will increase the number of households covered under the drought sovereign policy,” he said.

“I am hopeful that other partners will come on board in support of our drought insurance through direct purchase or the Replica approach. I am honoured, to, on behalf of the Government of Zimbabwe, receive the ARC drought insurance payout amounting to $16,8 million.

“The payout is complemented by payouts to our ARC replica partners amounting to us$6,1 million to the WFP and US$8,9 million to Start Network. Zimbabwe will therefore receive a total payout of US$31,8 million.

Minister Ncube said the insurance payout will be distributed to approximately 508 435 vulnerable households in 27 districts across the country.

“This payout will contribute immensely towards complementing the early drought response intervention measures which Government has put in place,” he said.

“As most of you are aware, President Mnangagwa approved a blitz food distribution to ensure no one goes hungry as we wait for the ZimLAC Assessment results.

“The blitz food distribution is targeting all food insecure vulnerable households in Zimbabwe and is currently supporting approximately 6 million people through grain distribution.

“The ARC payout therefore complements Government efforts in ensuring food security, and the immediate response is crucial for the resilience of our communities, ensuring that no household will suffer from hunger.”

Mr Edward Kallon, UN Resident and Humanitarian Coordinator, said the money will significantly complement the ongoing drought mitigation and response efforts of the Government of                          Zimbabwe.

“Congratulations to the Government of Zimbabwe, WFP and Start Network for the foresight and strategic investment made with support from Development Partners,” he said.

“Going forward, the Africa Risk Insurance Facility exemplifies the pivotal role of insurance in nurturing climate adaptation, resilience, and sustainable development within Africa’s agricultural sector.”

“The significant economic damage inflicted by climate change on Africa in 2022, exceeding US$8,5 billion according to recent reports, underscores the urgent need for targeted climate insurance solutions and anticipatory action plans.

“Today’s ceremony underscores collective commitments to bolster resilience against climate-related hazards. By advocating for ARC’s innovative disaster risk management and financing strategies, there is scope to expand participation in ARC’s risk financing mechanisms, urge the ratification of the ARC Treaty by the Government of Zimbabwe and other governments, and showcase the efficacy of collaboration among all stakeholders involved.”