UN, AU urge African countries to invest in disaster insurance

HARARE, ZIMBABWE — The U.N. and the African Union are urging countries on the continent to invest in natural disaster insurance because conditions like droughts, cyclones, diseases and floods are becoming more frequent with climate change.


Zimbabwe received an insurance payout of $32 million from the AU’s African Risk Capacity agency, or ARC, for the devastation the country suffered from the El Nino-induced drought.


In a speech Thursday in Harare, Edward Kallon, the United Nations resident coordinator for Zimbabwe, encouraged countries to take part.


“Given the increasing frequency and intensity of climatic shocks, investing in prevention, mitigation and proactive strategies is no longer a choice but an imperative,” he said. “Such investments yield substantial returns by mitigating disaster impacts, safeguarding lives and ring-fencing developmental gains.”




In Zimbabwe, Kallon said, the investment helps expand access to Africa Risk Insurance for small farmers and SMEs, or small-to-medium enterprises, which are the backbone of Africa’s agricultural system. In addition, he said, the investment aids in implementing advanced systems that provide timely alerts and equipping communities with education and training on disaster preparedness.


After the drought caused by El Nino, Zimbabwe is bracing for La Nina. Forecasters predict it will spark flooding in the 2024/2025 rainy season expected by October.




“ARC’s collective goal is to enhance Africa’s resilience by providing Africa Union member states with tailored services to cover risks such as drought, tropical cyclones, floods, and disease outbreaks and to devise sustainable risk financing solutions,” said Anthony Mathae Maruping, chairman of the African Risk Capacity group board.


“ARC will continue to leverage its continental stature, expertise and robust partnerships to bolster Zimbabwe’s readiness to respond to these threats using cutting-edge early warning tools. Similar interventions are and will be accorded to other African member states in similar situations,” he added.


From the $32 million payout, Zimbabwe’s government received $16.8 million, while about $15 million went to two aid organizations: the Start Network and the World Food Program.


"The WFP’s $6 million ARC payout is a vital lifeline for communities in Zimbabwe facing the devastating impacts of the El Nino-induced drought,” said Francesca Erdelmann, the WFP representative in Zimbabwe. "This timely support will enable us to provide essential food assistance and prevent negative coping strategies, ensuring that vulnerable populations can withstand these difficult circumstances. We will be able to support 200,000 people in three districts."


Mthuli Ncube, Zimbabwe’s minister of finance, said the government will take care of other districts hit by the drought.