The African Risk Capacity, ARC, is facilitating preparedness for African governments to deal with Disaster and Risk Management, DRM, challenges in an era climate change has enhanced risks.
The ARC system is an African Union coordinated means to facilitate for African country preparedness in meeting the challenges of DRM through its Agency and Insurance arm.
“Historically, Africa and its partners have lacked the appropriate financial mechanisms to respond effectively to natural disasters. As currently structured, the system for responding to natural disasters is not as timely or equitable as it should or could be.” Francois Tantely the ARC Country Engagement Manager said.
“ARC Insurance Company Limited (ARC Ltd) is the financial affiliate of ARC Agency. It was established in 2013 to provide insurance to participating sovereigns” Tantley also said.
Dependency on International structures to fund DRM has always been cumbersome and the budgetary constraints DRM has brought on National budgets has left eyesores on the development space.
“International assistance through the appeals system is secured on a largely ad hoc basis after disaster strikes, and governments are forced to reallocate funds in national budgets from essential development activities to crisis response.” Tantley also said.
ARC facilitates for country preparedness in DRM through availing insurance that is immediately available once Disaster strikes.
“ARC provides governments with access to immediate funds for early and planned responses to natural disasters. It brings together four critical elements: early warning, contingency planning, insurance and adaptation finance.” Tantley also emphasised.
“In order to participate in ARC, countries must undertake several processes, including signing a Memorandum of Understanding for in-country capacity building. This involves customisation of RiskView software to define the risk profile for the country, preparing a contingency plan for ARC payouts, and determining risk transfer parameters.” Tantley also said.
“Since 2014, ARC Ltd has disbursed $36.8 million to ARC Ltd policyholders as a result of drought events, often ahead of the UN appeal. These funds have gone towards assisting over 2.1 million people whose livelihoods rely on agriculture, preventing the loss of hard-earned developmental gains.” Tantley also emphasised.