This archive report was first published on 10 November 2019.
On October 30 and 31, the African Risk Capacity (ARC) announced the rollout of country-specific insurance products at a workshop in Zimbabwe for the East and Southern Africa (ESA) region.
These new products will cover tropical cyclones, disease outbreaks, epidemics, and flooding, expanding the ARC's scope beyond traditional insurance against droughts.
Since 2014, 32 member states have signed policies, with $73 million paid in premiums for a cumulative insurance coverage of $553 million, protecting 55 million vulnerable individuals in participating countries.
The ESA region has recently faced severe droughts, floods, tropical cyclones, disease outbreaks, and epidemics, including Cyclone Idai, which hit Mozambique, Malawi, and Zimbabwe in March, claiming at least 750 lives and causing $9 billion in damage in Mozambique alone.
The Democratic Republic of Congo has been grappling with an Ebola epidemic for over a year, raising concerns about a possible spread to neighboring countries.
ARC, a specialized agency of the African Union, was established in 2012 to improve member states' capacity to plan and respond to natural disasters and protect food security.
According to a report tabled in Addis Ababa at the 32nd Ordinary Session of the Assembly of the African Union, only eight of the 34 ARC founding members have ratified the treaty and paid annual premiums, making them eligible for compensation.
