Mali receives African Risk Capacity climate risk insurance pay-out
09-03-2022 14:55:30 | by: Pie Kamau | hits: 4008 | Tags:

Over 204,000 vulnerable people in drought-affected regions of Mali will benefit from a $7.1 million climate risk insurance pay-out by African Risk Capacity (ARC) through the United Nations World Food Programme (WFP).

The ARC Replica pay-out is the first of its kind in Mali, aimed at providing emergency and resilience-building support to populations vulnerable to the impacts of climate-change-induced disasters. In 2021, Mali experienced the most severe lack of rains in five years caused by periodic dry spells and low rainfall, putting 1.9 million people across the country at risk of severe food insecurity – mostly in the regions of Kayes, Gao, Mopti, Segou, and Timbuktu. In the case of Mali, however, the impacts of drought have been particularly exacerbated by 10 years of conflict and COVID-19.

As an ARC-Replica technical partner, the WFP has been subscribing to the climate insurance policy in Mali since 2017 to finance early emergency response. In 2021, WFP’s insurance premium was funded by the United States Agency for International Development (USAID) and the Government of Germany.

Lesley Ndlovu, CEO,  ARC: “Speed is of the essence and the ARC Replica programme requires of governments and partners, such as the WFP, to develop a contingency plan which sets out at a very high level how the government would use any insurance pay-out received from ARC. Having a plan increases dramatically the speed of execution because at a point the government received the funding, it already has a plan on how to disburse this. We work with member states to provide disaster risk insurance to promote resilience and provide financial protection the vulnerable population when perils, such as the Mali drought, occur.”

With this climate insurance payment, WFP will provide early food assistance through cash transfers to 161,000 women, men and children affected by climate shocks. Over 20,000 children aged from 6 to 23 months, and pregnant women and breastfeeding mothers will receive nutritional support and services. To reinforce communities’ resilience to climate shocks, 23,000 people will benefit from community asset building programmes such as pastoral wells, water towers and fishponds that will help diversify their production and livelihoods and reduce the impact of future rains deficiencies.

DICKO Bassa Diane, Deputy Minister Commissioner of the Food Security Council: “ARC Replica is a valuable programme that complements and supports the efforts of the Malian Government in the fight against food insecurity and malnutrition. The government strategy is to provide half rations to populations in food crisis situations to contribute to national solidarity. Our common interest is to always work together to relieve the populations affected by drought and strengthen their resilience to climate shocks, with innovative solutions such as those offered by the ARC mutual insurance company.” 

Established to help governments improve their capacities to plan, prepare and respond to natural disasters caused by extreme weather events, ARC-Replica is an innovative approach to climate risk management which allows countries – like Mali – to extend their climate insurance coverage to more vulnerable people in their countries.

www.arc.int