Germany Helps African Countries Maintain Drought Insurance in View of COVID-19
In response to the COVID-19 crisis, the German government is covering premium payments of around EUR 19 million for drought insurance for African Risk Capacity (ARC). This will reliably insure up to 20 million poor people who are particularly vulnerable to crises from drought damage in the coming agricultural season.
Mitigating the negative consequences of drought by taking out an ARC policy prevents more far-reaching economic, food and health crises. However, with comparatively small national budgets, African governments often face the challenge of providing solid financing for the annual insurance premiums. This problem has become even more acute for the current year with the COVID-19 pandemic.
The BMZ is responding to this situation with its COVID-19 aid package: Zimbabwe and five West African countries, which have to take out insurance cover as early as the beginning of June, will be provided with EUR 8.5 million for premium payments under ARC Replica. This will enable the World Food Programme or the START Network – an association of 40 humanitarian aid organizations – to take out ARC policies for Burkina Faso, The Gambia, Mali, Mauritania, Senegal and Zimbabwe. The BMZ is making a further EUR 10.5 million for premium subsidies to countries in the south and east of the continent, where the insurance policy will not be taken out until the second half of the year due to the later planting season.
Get more information in the Press Release here