The African Risk Capacity (ARC) has partnered with the UN Economic Commission for Africa (ECA) to increase insurance coverage against climate risks for African states
The multilateral deal, which was announced at the African Union’s Annual Summit in Addis Ababa, aims to build the capacity of ARC and ECA’s 33 common Member States by embedding risk management investments into government planning through policy development.
ARC and ECA will share expertise and commit financial resources to joint analytical work in areas of economic and climate risk research to promote risk transfer instruments.
The UN estimates that Africa will see the adaptation costs of climate change rise to US$50bn per year by 2050.
“This partnership marks a bold new phase of heightened collaboration on combating the effects of climate change in Africa,” said Mohamed Beavogui, director-general of ARC Agency.
“The future of disaster risk management is an increasingly urgent economic issue, and ECA’s unique expertise will complement ARC’s work serving its Member States and building preparedness and resilience on the continent,” he added.
In the four years that ARC has offered insurance coverage to its Member States, it has paid out more than US$34mn million to Member States affected by drought events. These resources have assisted more than two million people affected by climate disaster.
“Climate change is one of the biggest threats to Africa’s economic and social development,” said Vera Songwe, executive secretary of ECA. “We believe that efforts like our partnership with ARC will help move the needle, so that African countries can be well-guarded against these threats, and they can thrive.”
