Zimbabwe has received a total of 31.8 million U.S. dollars in drought insurance payout from the African Risk Capacity (ARC) Group to help alleviate the effects of the El Nino-induced drought.
The payout follows the joint participation of the Zimbabwean government, the UN World Food Program (WFP), and Start Network, a non-governmental organization, in the ARC sovereign insurance risk pool for the 2023/2024 agricultural season.
Of the 31.8 million dollars, the Zimbabwean government received 16.8 million dollars while the WFP and Start Network got 6.1 million and 8.9 million dollars, respectively.
Speaking at the handover ceremony in Harare, Zimbabwe’s capital, Finance Minister Mthuli Ncube said the insurance payout will be distributed to about 508,435 vulnerable households in 27 districts across Zimbabwe.
“This payout will contribute immensely towards complementing the early drought response intervention measures which the government has put in place,” Ncube said.
According to the government, Zimbabwe was affected this year by one of the worst El Nino-induced droughts in decades, which cut cereal production by 77 percent and left 60 percent of the country’s population food insecure and in need of food aid.
In April, Zimbabwean President Emmerson Mnangagwa declared a state of disaster over the drought, and the government has appealed for more than 3 billion dollars to respond to the drought crisis.
Ncube said the ARC payout, the second for Zimbabwe after the initial 2019 drought insurance payout, will complement the government’s efforts in ensuring food security.
“The 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. This immediate response is crucial for the resilience of our communities, ensuring that no household will suffer from hunger,” he said.
Ncube commended the African Union (AU) for establishing the ARC, noting that it is a quick-win solution to disaster risk management and financing for many African countries.
The ARC is a specialized agency of the AU that was established in 2012 to assist member states in preparing for and responding to natural disasters, particularly droughts and other extreme weather events.
Source: Xinhua
