ARC to pay Côte d’Ivoire Sh76 million

ARC assists AU member states in reducing the risk of loss and damage caused by extreme weather.

The African Risk Capacity Insurance Limited (ARC Ltd) will pay out $738,835 (about Sh76 million) to Côte d’Ivoire following poor rainfall experienced in the central region during the agricultural season.

The funds will help vulnerable families to better cope and ensure sustenance through a contingency plan developed between ARC Agency and Côte d’Ivoire Government.

Cote d’Ivoire joined the ARC Ltd insurance risk pool in 2019.  This payout will be the first made by the facility to the country. 

The Government has disclosed that its officials will meet with relevant experts and other partners between September 12 and 13 to discuss modalities to ensure that the funds reach the most affected population in line with the contingency plan.

“The Government of Cote d’Ivoire has been consistent in its relationship with ARC. The expected trigger for a payout to the country will, once again, validate ARC’s proof of concept and enable the Government to timeously assist the affected population thereby significantly reducing vulnerability and promoting resilience,” said ARC Insurance Limited Chief Executive Office Dolika Banda.

As early as July 2019, Africa RiskView, the software underpinning the ARC parametric insurance model, signaled irregular and insufficient rainfall in the central region of Cote d’Ivoire providing an early warning that an estimated 400,000 people will be affected by the rainfall deficit by the end of the season.

The end of agricultural season for Cote d’Ivoire central region is set for October 11, 2019.

Commenting on the announcement made by the ARC, Assahoré Jacques, Director General of the Treasury and Public Accounting in Côte d'Ivoire and Supervisor of the ARC-CI programme, lauded President Alassane Ouattara for believing in ARC to enable populations affected by the rainfall deficit to benefit from the compensation.

"Early warning is key in the benefits we derive from our membership of ARC. This is the first time we have received a payment from ARC Ltd and our officials and partners are ready to mobilise quickly in the affected region once the payments are made to ensure food security for the affected population," said  Jacques.

ARC assists AU member states in reducing the risk of loss and damage caused by extreme weather events by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely manner.

ARC is now using its expertise to help tackle some of the other greatest threats faced by the continent, including outbreaks and epidemics.