By Senior Reporter
Harare- The decision by Zimbabwe to join the African Risk Capacity (ARC) Group and contribute towards ARC.s drought insurance risk pool has paid dividends as approximately 508,435 vulnerable households in 27 districts across the country are set to benefit from the insurance pay out accrued from the drought insurance pool.
The US$ 16.8 million pay out by ARC is complemented by pay-outs to the country’s ARC replica partners amounting to $6.1 million to the WFP and $8.9 million to Start Network. Zimbabwe will therefore, receive a total pay-out of US$31.8 million, a shot in the arm as the country continues to make progress in its effort to mitigate the impact of the El-Nino induced drought on its citizens.
Officiating at the handover ceremony at the handover ceremony of the insurance pay out, Finance and Economic Development Minister Mthuli Ncube hailed the disbursement which is coming at an opportune time.
“This pay-out will contribute immensely towards complementing the early drought response intervention measures which Government has put in place As most of you are aware, His Excellency, the President of the Republic of Zimbabwe, Dr. E. D. Mnangagwa, approved a blitz food distribution to ensure no one goes hungry as we wait for the ZimLAC Assessment results, he said.”
“The blitz food distribution is targeting all food insecure vulnerable households in Zimbabwe and is currently supporting approximately 6 million people through grain distribution. The ARC Pay-out therefore complements Government efforts in ensuring food security, and the immediate response is crucial for the resilience of our communities, ensuring that no household will suffer from hunger,” he added.
Minister Mthuli acknowledged the impact of the drought on the country , thanking various partners who have shown unwavering support to the country.
“I must admit that the 2023/24 agricultural season was particularly challenging, characterized by the severe El Niñoinduced drought conditions that have tested the fortitude of our communities and our agricultural sector. Allow me at this juncture to express our most sincere gratitude to the African Development Bank (AfDB), the Swiss Agency for Development and Cooperation (SDC), KfW, replica partners 6 (WFP and Start Network) and the ARC Group for their unwavering support and solidarity.”
Zimbabwe became a member of the African Risk 4 Capacity (ARC) Agency in 2012. The Agency offers innovative disaster risk financing solutions and assists member states develop contingent measures for natural disasters, thus enabling countries to strengthen their disaster risk management systems, and to access rapid and predictable financing in the event of a disaster, thereby, ensuring food security and livelihoods of vulnerable populations.