LATEST: Zim optimistic about ARC inclusion

Source: LATEST: Zim optimistic about ARC inclusion | The Herald January 30, 2017

From Victoria Ruzvidzo in ADDIS ABABA, Ethiopia

Zimbabwe, which failed to raise a $500 000 premium last year to qualify for funding from the African Union’s Africa Risk Capacity for drought and floods mitigation programmes, could soon be back in the fold.

ARC is working on a five-year programme with the African Development Bank for the release of funds to help countries facing financial constraints.

Zimbabwe has already signed the agreement with ARC but failed to raise the required $500 000 that would have unlocked at least $10 million.

Responding to questions here at the weekend, ARC director general Mohamed Beavogui said it was unfortunate that Zimbabwe failed to raise the money but was optimistic the ADB would come to the rescue.

“It was unfortunate for your country (Zimbanwe ) that we had done all the paperwork and the technical stuff but it failed to raise the money, ” he said.

Malawi, for instance, paid a $700 000 premium and received $8,4 million. Amounts vary depending the needs of a country and its capacity to pay.

ARC is a risk- management and resilience-building platform that provides financial tools and infrastructure to help AU member states manage natural disaster risk and to adapt to climate change.

Over the last few years Zimbabwe and the entire region has suffered droughts that have left thousands of people in need of food.