Harare, (New Ziana) – Zimbabwe has received a drought insurance payout of nearly US$32 million from the African Risk Capacity (ARC) as mitigation for vulnerable people.
ARC is a specialised agency of the African Union established to help African governments improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters.
Zimbabwe is an ARC member since 2012.
The government received US$16.8 million, a drawdown on the US$31.8 million facility, set to assist 508 435 most vulnerable households in 27 districts countrywide. The other tranches went to ARC replica partners, the World Food Programme (WFP) which got US$6.1 million and the Start Network US$8.9 million.
WFP is a United Nations food relief agency while Start Network comprises the Zimbabwe Project Trust (ZimPro), Catholic Relief Services (CRS), Family Aids Caring Trust and Action Against Hunger (ACF).
Receiving the payout in Harare on Thursday, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube said the funds will immensely complement the early drought response intervention measures taken by the government.
The government is carrying out a food distribution blitz targeting six million food insecure vulnerable household through grain distribution in rural areas and urban cash transfer for about 1.7 million people in urban areas.
Prof Ncube said the payout is a result of joint efforts by the government, WFP and Start Network that took part in the sovereign insurance risk pool for the 2023/2024 agricultural season.
ARC offers innovative disaster risk financing solutions and assists member states develop contingent measures for natural disasters, 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.
Prof Ncube said Zimbabwe spoke to the ARC group representative, Dr Anthony Maruping for a multi-year arrangement to be able to cover all the country’s 64 districts.
In 2019/20 agricultural season, Zimbabwe experienced drought and received a payout of US$1.4 million which benefitted 180 000 households.
He said the government has since 2019/20 collaborated with KfW, a German development bank, Swiss Development Cooperation and Africa Development Bank and purchased sovereign policies, such as the one complemented by replica policies from the WFP and Start Network.
Prof Ncube announced that the UN High Commission for Refugees has expressed interest to become an ARC replica partner for Zimbabwe, a move expected to increase the number of households covered under the drought sovereign policy.
“I must admit that the 2023/24 agricultural season was particularly challenging, characterized by the severe El-Niño induced drought conditions that have tested the fortitude of our communities and our agricultural sector,” he said.
New Ziana
