Thursday, July 25, 2024

ARC Pays Out USD10 Million To Government

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Government through the Disaster Management and Mitigation Unit has received the 2023 /2024 Drought pay out of 10 million United States Dollars from the African Capacity Limited (ARC) Group.

Minister of Finance and National Planning, Situmbeko Musokotwane says the payout by ARC includes a 3.3 million United States Dollars to the World Food Programme to help in the mitigation of drought effects in the eight affected districts in the country.

Dr Musokotwane said the Zambian government is obligated to continue paying the premium yearly to ARC Group in order to continue benefiting from the insurance.

Speaking during the 2023/2024 Drought Insurance Payout ceremony in Lusaka, the Minister expressed commitment by the government to become ambassadors to the scheme to encourage other member countries to join the ARC Group.
“Paying of the premium makes sense because we are the ones at risk. As we can see, the scheme works when faced with a disaster, there is a payout hence the need to be prepared and the government is ready to pay the full premium so that we benefit in the future. Obviously, there will be years when we will pay the premium and we won’t have droughts but that’s fine because that’s how insurance works,” he said.

He further thanked ARC Group and other stakeholders for their support t
owards complimenting the government’s efforts in ensuring that no Zambian dies of hunger due to the drought.
And speaking at the same event, African Risk Capacity Group Board Chairperson, Anthony Maruping commended the Zambian government for collaborating with ARC following the drought that the country recently faced.
Dr Maruping said the collective goal of the ARC Group is to enhance Africa’s resilience by providing African Union States services through diverse solutions to cover risks like droughts, floods, disease outbreaks and other disasters.

He expressed ARC Group’s commitment to continue providing new solutions in response to its member states apart from the drought insurance

Meanwhile, World Food Programme Country Director for Zambia, Cissy Kabasuunga expressed gratitude to ARC Group and the Zambian government for their efforts in responding to the impacts of the El Nino induced drought.
Ms Kabasuunga said WFP is excited to be part of the ARC Group innovative Disaster Risk Financing Instrument to mitigate the impact of climate shocks on the most vulnerable populations in the country.
She noted that the organisation’s participation in the ARC Group insurance risk pool for the first time in Zambia, demonstrates its dedication to leveraging innovative strategies to address food insecurity and advance sustainable development goals.

Among those present at the event, included the African Development Bank (AfDB) Chief Country Economist, Nathaniel Agola, Disaster Management and Mitigation Unit National Coordinator, Gabriel Polllen, European Union Delegation to Zambia, Head of Sector, Bogdan Stefanescu, Nerthalands Ambassador to Zambia, Margret Verwijk and Swiss Agency for Development and Cooperation (SDC) Deputy Head of Mission, Stefano Berti.

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