Drought: ARC to pay out $25 million for Mauritania, Niger and Senegal
The specialised agency has granted this sum as part of an insurance scheme against natural disasters.The African Risk Capacity (ARC) is to pay out $25 million (€22.2 million) to Mauritania, Niger and Senegal as part of an insurance scheme against natural disasters.
These countries paid a combined premium of $8 million and will use the payout to mobilise early interventions in response to drought.
The catastrophe insurance model is tailored to African climate issues, developed by the ARC, a specialised agency of the African Union.
Kenya, Niger, Mauritania and Senegal are the first African nations to adopt this new funding method.
“This African-owned approach is addressing specific country-level climate change concerns, decreasing reliance on external aid, and promoting a sustainable solution to one of our continent’s biggest challenges,” said Dr. Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance and Chair of ARC’s Governing Board.