Post-COVID-19: FAO estimates 135m to suffer acute food insecure - NaijaAgroNet

NaijaAgroNet:
Following the recent release of the Global Report on Food Crises 2020, the Food and Agriculture Organisation (FAO) has estimated that some 135 million people would suffer acute food insecure, reports NaijaAgroNet.

According to the report, this figure were acutely food-insecure in need of urgent humanitarian food and nutrition assistance.

Addressing COVID-19 impacts on food systems during the launch of its comprehensive COVID-19 Response and Recovery Programme, FAO said its aimed at preventing a global food emergency during and after the COVID-19 pandemic while working on medium to long-term development response for food security and nutrition.

Besides being a major public concern, the COVID-19 pandemic can also be a serious threat to global food security. According to the World Bank's estimates, the pandemic's economic impact could push about 49 million people into extreme poverty. Soaring unemployment rates, income losses and rising food costs are jeopardizing food access in developed and developing countries alike and will have long-term effects on food security.

The latest edition of FAO's report on the State of Food Security and Nutrition in the World, revealed that even before the impacts of the COVID-19 pandemic hit the global food systems and livelihoods of millions of people at the start of the year, 10 million more people were in a condition of undernourishment with respect to 2018 and 60 million more with respect to 2014.

Furthermore, the pandemic may plunge national economies into recession, and countries ought to take urgent measures to mitigate the longer-term impacts on food systems and food security.

Equally urgent is the compounding threat of the pandemic on existing crises - such as conflict, natural disasters, climate change, pests and plagues - that are already stressing our food systems and triggering food insecurity around the globe.

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How AfDB enhances food security for 9m people - NaijaAgroNet

Report@NaijaAgroNet:

The Water Mobilisation Project to Enhance Food Security in Maradi, Tahoua and Zinder Regions (PMERSA-MTZ), implemented between 2011 and 2018 in Niger, has sustainably increased agricultural production and productivity and increased food security for nearly nine million residents of this Sahelian country, according to a report by the African Development Bank (www.AfDB.org).

Financed through a loan of $11 million from the African Development Fund and a grant of $28.7 million from the Global Agriculture and Food Security Programme, the project directly involved 218,000 people in the three regions of south-central Niger, with another nearly 476000 indirectly affected. These three regions are home to approximately 56 percent, or 8.9 million people, of the country’s population.

“The project’s expected effects, as far as food security, increased production and jobs, were achieved overall,” according to the PMERSA-MTZ final report. The team was led by Moustapha Cheick Abdallahi Cheibany, senior agricultural economist for the Bank.

“Grain production goals were 94 percent achieved and those for vegetable production were exceeded (123%). A very clear improvement in the availability of agricultural and livestock products has been demonstrated, and income for the population has been increased due to higher yields, commercialised agricultural production and the revitalization of production areas,” notes the report team.

The average expected level of grain production (15,000 tonnes/year) was achieved and surpassed in 2017 and 2018 to reach 16 000 and 21 156 tonnes, respectively. With 16 000 tonnes annually, vegetable production surpassed its goals in 2017 (122%) and 2018 (179%).

The project entailed establishment of various types of infrastructure (irrigation projects, including 47 sills (small dams) and 11 mini-dams, water and soil conservation techniques on 3 700 ha, and the construction of 74 wells and 273 km of rural tracks) with the goal of developing and securing agricultural production (on 18 800 ha irrigated and decreasing). It also supported product commercialisation and, more broadly, improving living conditions of the rural residents involved.

*Editor
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FAO launches the new COVID-19 response, recovery - NaijaAgro

NaijaAgroNet:
The Food and Agriculture Organisation (FAO) unveiled today its new comprehensive COVID-19 Response and Recovery Programme, aimed at preventing a global food emergency during and after the COVID-19 pandemic while working on medium to long-term development response for food security and nutrition.

The agency is calling for $1.2 billion in initial investment to support the needs of the new programme.

The Programme was launched today during a virtual dialogue with private and public sectors entitled "Joint action on COVID-19: boosting our food and agricultural response". The event was organised by FAO to provide an agile and coordinated global response that ensures access to nutritious food for all by mobilizing all forms of resources and partnerships at country, regional and global level.

In line with the UN approach to "build back better" post COVID-19, and in pursuit of the Sustainable Development Goals (SDGs), the new programme aims to mitigate the immediate impacts of the pandemic while strengthening the longer-term resilience of food systems and livelihoods.

"We cannot employ a ‘business as usual' approach anymore," highlighted FAO Director-General QU Dongyu in his opening remarks, adding that "We must work very hard to limit COVID-19's damaging effects on food security and nutrition. We need to be more country-driven, innovative and work closely hand in hand. This is how FAO has built its COVID-19 comprehensive response and recovery programme, and today we are asking you to join us."

Isaac Oyimah/Editor

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post–COVID-19: Indigenous Peoples crucial partners to better world says Houngbo - NaijaAgroNet

NaijaAgroNet:

The Indigenous Peoples and their unique knowledge are essential to address the COVID-19 outbreak and to build a more sustainable, resilient world as we recover from the pandemic, the President of the International Fund for Agricultural Development (IFAD) has said, reports NaijaAgroNet.

“The COVID-19 pandemic shows us that we need to rethink the way we interact with nature, as well as how we produce and consume food. The continuous use of unsustainable agricultural practices, and the devastation of forests and wildlife, are part of what has brought us into closer contact with the virus that causes COVID-19,” said IFAD President, Gilbert F. Houngbo. “Indigenous Peoples have long warned of the consequences of exactly these kinds of practices”.

Houngbo was speaking ahead of today’s event focused on the importance of partnering with Indigenous Peoples to achieve the Sustainable Development Goals and build a more resilient future, to be held on the margins of the United Nations High-Level Political Forum on Sustainable Development (HLPF). The event is co-convened by Canada, Finland, the Food and Agricultural Organization (FAO) and Indigenous Peoples Major Group (IPMG) for Sustainable Development.

“We must recognize and acknowledge the important role that Indigenous Peoples play in supporting and protecting sustainable livelihoods. They provide sound stewardship of our environment, and help build greater biodiversity and sustainable food systems,” said Minister Karina Gould, Canada’s Minister of International Development who is opening the event.

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Desilting of Waterways: Buhari, Lawan, Gbajabiamila must stop N15bn fraud payment - NaijaAgroNet

NaijaAgroNet:

The President, General Muhammadu Buhari, retired, and President of the Nigerian Senate, Ahmed Lawan as well as the Speaker of the House of Representatives, Rt. Hon Femi Gbajabiamila have been urged to stop the payment of N15 billion to contractors over "desilting of waterways" by the Niger Delta Development Commission (NDDC), reports NaijaAgroNet.

This call was made at the weekend by a legal practitioner, Mr. Godwin Ojeh, lamenting what he called corruption of self-enrichment in NDDC.

"The Interim Management Committee of the Niger Delta Development Commission has thrown caution to the winds. It is about to pay for jobs not done. The committee is processing the payment of a whooping amount of N15billion on spurious contracts in the name of "Desilting of Waterways".

He particularly decried the misappropriation in the management of the funds of the commission.

"Is the 2020 budget of the commission ready? Where are they spending from? ’Recently, the Senate set up an ad hoc committee to probe the Interim Management Committee of the Niger Delta Development Commission (NDDC) over alleged mismanagement of N40billion. The Senate also requested for 2019 budgetary performance. The commission doesn’t have power to expend public money. There is no budgetary provision."

In a tone suggestive of his hatred for corruption, the Benin based lawyer asked the National Assembly and the executive arm of the government to stop the commission from wasting the country’s resources.

In a statement in Benin, Ojeh described the intention of the NDDC Interim Management Committee as "a move that will endanger development of the region."

This, he said, poses a greater danger to the development of the Niger Delta region than the payments for fictitious contracts.

He also harped on the need for transparency in government organizations, saying "it is necessary for the National Assembly and the executive arm of government to adopt a collective position on the allegation of corruption in the Niger Delta Development Commission (NDDC)."

*Isaac Oyimah with additional report by Ebireri Henry Ovie

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Post-Pandemic: OLADE, IRENA put renewables at heart with MoU - NaijaAgroNet

NaijaAgroNet:

The International Renewable Energy Agency (IRENA) and the Latin American Energy Organization (OLADE) will boost ties to put the renewables-driven energy transformation at the heart of Latin America and the Caribbean’s economic recovery following the COVID-19 outbreak. The efforts build on an existing Memorandum of Understanding (MoU) originally signed by the two organisations in 2012.

Accelerating the development of sustainable energy could provide the Latin-American region with a long-term strategy to address social inequality, energy access and energy security. Renewables can also stimulate the growth of clean technology utilisation within the industrial, agricultural, manufacturing and transport sectors, while reducing the carbon emissions in the region by 21 per cent by 2030 compared to today’s levels, contributing towards global decarbonisation efforts in line with the Paris Agreement. In this context, OLADE and IRENA will promote renewable energy investment and financing, as well as energy integration in the region.

Under IRENA’s Global Renewables Outlook, accelerating the renewable energy driven transformation in Latin America and the Caribbean could create more than three million jobs across the region by 2050, while offering economic returns of between USD $3 and USD $8 dollars on every dollar invested the energy transformation. Investment needs in the region are estimated at USD $45 billion per year between now and mid-century – an increase of more than 10 per cent over current plans and policies.

“It is our core priority to help OLADE member countries improve energy access and security of energy supply in socially, technically and economically convenient conditions, promoting the incorporation of clean energy resources and efficient technologies,” said Alfonso Blanco Bonilla, Executive Secretary of OLADE. “It is in this context, strengthened collaboration between OLADE and IRENA can support the achievement of deeper energy transitions in the region, accounting for a diverse set of national circumstances and in line with the sustainable development objectives.”

“We stand together with OLADE in ensuring there is collective regional recognition of the socio-economic potential of a green recovery built around the energy transformation,” said Francesco La Camera, Director-General of IRENA. “While the region is diverse, all countries within it seek to benefit from higher shares of renewables, from enhanced energy security and lower system costs to widespread job creation, improved health and economic growth. The decisions made by policymakers today must seek to build a future of stability and prosperity, rather than prolong the unsustainable systems of the past.”

The Lima Declaration, approved during the XLIX Meeting of OLADE Ministers in November 2019, established energy complementarity and integration as a regional priority, promoting the creation and revitalisation of regional energy markets, including renewable energy. Additionally, the Declaration, ratified the commitment made by OLADE Member Countries to harmonise energy transition with economic growth and the reduction of greenhouse gas emissions in line with the 2030 Agenda for Sustainable Development and the United Nations Framework Convention on Climate Change.

Latin American countries possess vast and untapped renewable energy potential. In addition several countries in the region have developed robust electricity markets which results in an appealing destination for RE project developers and investors looking for geographical diversification and clean investments. Countries such as Argentina, Brazil, Chile, Costa Rica, Mexico and Uruguay have grown renewable energy capacity significantly in recent years. In 2019, total regional capacity increased by around 12 gigawatts (GW) and IRENA’s recent ‘Future of Solar Photovoltaic’ report highlighted that the region’s solar energy capacity alone could grow by a factor of 40 by 2050 to more than 280 GW thanks to an abundant resource endowment and strong enabling policies. In addition, geothermal, wind and bioenergy all play an increasingly important role in the region’s low-carbon energy mix.

In September last year, Colombia led a region-wide initiative called Renewable Energy in Latin America and the Caribbean (RELAC) to increase the share of renewables for electricity generation to at least 70 per cent by 2030. 10 countries are already part of this initiative and several entities have confirmed their support. This initiative may offer an additional area of collaboration between OLADE and IRENA.

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Ekiti commences renovation of Primary Healthcare facilities - NaijaAgroNet

NaijaAgroNet:

The Ekiti State government has commenced the renovation of Primary Health Care (PHC) facilities across the state, reports NaijaAgroNet.

The state governor, Dr Kayode Fayemi disclosed this last Friday while inaugurating the state’s health Insurance scheme aimed at ensuring that all residents of the state have access to quality and affordable health care services in Ado-Ekiti,.

Dr Fayemi said his administration would continue to ensure that all residents of the state have direct and unbridled access to quality healthcare at an affordable price.

The flag off ceremony was witnessed by the deputy Governor, Otunba Bisi Egbeyemi, Wife of the Governor, Erelu Bisi Fayemi; Commissioner for Health and human Services, Dr Moji Yaya-Kolade as well as stakeholders in the health sector.

The Governor also disclosed that his administration had commenced renovation of 16 primary healthcare facilities across the state in order to ensure effectiveness of the insurance scheme.

He urged Ekiti indigenes to prepare for the future by keying into the programme saying “the act of insurance simply implies getting ready or prepared for future unforeseen happenstances, that is saving in readiness for unforeseen losses even though nobody prays for one”

Dr Fayemi said he was confident that the programme will ensure protection of Ekiti families from financial hardships of huge medical bills with the aim to ensure sound health of children and safe delivery of pregnant mothers.

He assured that nobody would be turned away from any of the health services on account of poverty, adding that money has been released to take care of specific vulnerable group especially pregnant mothers and children under five years to participate in the scheme at the point of care.

The governor stated further that the other groups would be gradually incorporated into the scheme as they register and fulfill the requirements.

He said, “The launch of this scheme is very important, considering the prevailing precarious health situation human race is facing worldwide, the launch of Ekiti state Health Insurance Scheme today shows our continued quests to strengthen and sustain quality healthcare delivery in our dear state.

“We are therefore gathered here to prepare for qualitative healthcare for our people even though we do no pray to fall sick, our actions today show that we as a government and people are making provisions for accessible, qualitative, effective and efficient healthcare delivery through the launch of the Ekiti state Health Insurance Scheme. Many of you here would recall that Ekiti state Health Insurance scheme was initiated and piloted under our maternal child health programme in my first term in office, this was eventually passed into law as part of this administration’s dynamic and sustained health financing system.

“As we all know, health insurance guarantees unlimited healthcare funding with the view to achieving universal healthcare coverage with little or no financial burden on both the government and the people of the state.

“The mission of this scheme therefore is to put in place appropriate health plans and programmes that will ensure continuous access of all Ekiti residents to qualitative and affordable healthcare services through collective pulling and redistribution of our financial resources

“As a responsible government, we have also commenced the renovation of primary healthcare facilities across the state starting from here at Okeyinmi Comprehensive health Centre as well as fifteen others to prepare adequate infrastructural facilities for the provision of basic healthcare services at selected locations.”

The governor noted that his administration had recorded successes especially in the area of women protection and empowerment; in construction and industrial development, knowledge economy; security of lives and property; restoration of values as well as the health sector.

He explained further that his administration was committed to supporting the health sector to ensure quality healthcare delivery with the aim of boosting the health status of the state and its entire population.

The highpoint of the event was the distribution of medical kits to some registered expectant mothers at the Okeeyinmi Primary health centre. The distribution was made by Erelu Fayemi, whom also urged the women to take full advantage of the new initiative.

Also speaking at the event, the State Commissioner for Health and Human Services, Dr (Mrs) Mojisola Yaya-Kolade commended Governor Fayemi for restoring values and worth of lives of Ekiti residents adding that the scheme would provide them with easy access to healthcare with no discrimination to financial status or class.

The commissioner restated that the scheme was introduced to provide universal healthcare and improve access to preventive care as well as provide early effective diagnosis and quality treatment.

She congratulated Ekiti residents who would no longer need to wait for 30 days before maturation of the insurance policy as Dr Fayemi administration had reduced it to 14days.

In their goodwill messages, the representatives of the World Health Organization (WHO), National Health Insurance Scheme (NHIS) and National Health Care Development Agency (NHCDA) all commended that state government for the launch of the scheme which they described as being long awaited.

They urged residents of the state to key into the scheme as a way of bringing better improvement to the health status.

Isaac Oyimah/Editor

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Extensive Drought: ARC, WFP respond to Zimbabwe with $1.7m - NaijaAgroNet

NaijaAgroNet:

The African Risk Capacity Insurance Company Limited (ARC Ltd) Thursday paidout the sum of USD 1.4 million to the Government of Zimbabwe and another US$ 290,288 to UN World Food Programme (WFP), in parametric drought risk insurance payouts to support the extensive drought response efforts in Zimbabwe, reports NaijaAgroNet. 

The payouts announced via a virtual ceremony were the result of drought insurance policies bought by Zimbabwe’s National Treasury and UN World Food Programme (WFP) to cover the 2019/20 rainfall season. 

These payouts will contribute in funding the early response measures put in place by Government and WFP through the ARC Operational Plan mechanism. The payout to the Government will be used to support over 155 000 families in the highly vulnerable districts of Buhera, UMP, Chivi, Binga and Bulilima, through direct mobile cash disbursements during the month of August 2020. 8. WFP will use the ARC payout to support around 33,550 beneficiaries with unconditional food assistance in prioritized wards during Sept/Oct’20 and complement the Government’s response efforts through the Food Deficit Mitigation Strategy.

Speaking after the official notification of the ARC payout, the Minister of Finance and Economic Development, Honorable Prof. Mthuli Ncube, said; “This is evidence that the Government of Zimbabwe is taking measures of cushioning its fiscus against natural disasters, in Zimbabwe. The payout will complement existing social safety nets that Government has structured to counter droughts but also to respond to the emergence of the COVID 19 pandemic.”

Zimbabwe is increasingly vulnerable to severe drought events, and other calamities such as floods and tropical cyclones. Given the unpredictable nature of occurrence of these disasters, Government has had to resort to National Budget reallocations to cushion vulnerable populations against their impacts. In that sense the Government of Zimbabwe has moved to revamp its disaster risk financing systems. 

The ARC parametric risk insurance facility has been identified as a low hanging opportunity. With adequate insurance coverage against droughts, floods and outbreaks and epidemics at sovereign level, Government stands a better chance to cushion its fiscus against natural disasters now and in the future. 

Speaking on the ARC payout to Zimbabwe, Dr. Ngozi Okonjo-Iweala, the Chairperson of African Risk Capacity (ARC) Agency said, “it is helpful that this payout is coming at a time when there is a compounded effect of COVID 19 pandemic; and we hope that in addition to assisting the population affected by the drought, it will enable the Government in easing the financial pressure of supporting affected communities. Although disasters are not to be celebrated, when a Government takes steps of hedging its investments in food security against natural risk to broaden fiscus flexibility when a disaster strike, it should be commended. “The payout signifies the policy direction that Zimbabwe and other Governments across the continent are taking towards a transformative culture to disaster risk management and financing for the benefit of the population that is vulnerable to climate change’, Dr. Okonjo-Iweala concluded.

The Government has also called upon Development Partners to complement its efforts to increase insurance coverage at sovereign level. This support can either be direct or indirect. The ARC insurance products can be accessed by non-government entities such as UN Agencies, INGOs and private sector entities. 

Mr. Niels Balzer, the (a.i) UN World Food Programme Country Director and Representative for Zimbabwe, said, “The ARC payout to the Government of Zimbabwe and WFP through the Replica initiative is proof that the concept works as an innovative instrument to finance early response and lifesaving actions in the aftermath of extreme droughts. When combined with other instruments such as micro-insurance for smallholder farmers and Forecast-based Anticipatory Action, it provides powerful combined approach that has the potential to accelerate progress towards zero hunger in Zimbabwe.” He urged other Governments and Development Partners especially in the SADC region to capitalise on this instrument for enhancing climate resilience and food security in the region. 

Development Partners running resilience projects in disaster prone regions of Zimbabwe can directly secure their investments by purchasing insurance coverage from ARC, whilst micro-insurance companies can either act as insurance aggregators of small-holder farmers to allow bulk purchase of crop insurance from ARC or can purchase re-insurance products from ARC on specific terms and conditionalities. The ARC insurance products are highly competitive given that they capitalise on pooling risk across the risk diverse African continent, thus attracting favorable rates on the international re-insurance market. 

Over and above insurance products, these entities can also capitalise on ARC early warning, risk analytics, operational planning for early response and knowledge on disaster risk financing products and capabilities. 

Isaac Oyimah/Editor

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Pix: Representatives of ARC, Government of Zimbabwe, and other partners during the virtual ceremony

Adamawa: BUA cement targets ultramodern 3m plant, 50mw power - NaijaAgroNet

NaijaAgroNet:
BUA Cement, one of West Africa’s largest cement companies has announced that it is set to establish a three million metric tonnes cement plant and 50 megawatts power plant in Guyuk and Lamurde local governments of Adamawa state in the North Easter region of Nigeria. This was revealed when the Chairman of BUA, Abdul Samad Rabiu led the BUA Cement Management team on a courtesy call to the Adamawa State Governor, Ahmadu Umaru Fintiri in the Government House, Yola.

Speaking during the visit, Abdul Samad Rabiu said preliminary findings show that the two local governments of Guyuk and Lamurde are reputed to have good quality of limestone deposits and BUA Cement is ready to begin the investment in the state. He added that the BUA will use new technologies to supply power to the proposed cement plant and communities of Guyuk and Lamurde in addition to providing three thousand direct and five thousand indirect jobs.

The Chairman stressed that the Guyuk Cement Plant will be the major investment in the North East by BUA and solicited for support of Governor Umaru Fintiri to set up the factory in Guyuk. Rabiu said the company made a decision to source its raw materials locally and it has invested billions of dollars in various sectors across Nigeria and therefore urged the state government to support BUA to actualize the Guyuk Cement project. In addition, he praised the commitment of the governor within one year in office in many sectors of development despite the economic challenges in Adamawa.

Responding, Governor Ahmadu Umaru Fintiri said his administration's effort in exploring local contents has started yielding results and thanked BUA for showing interest in establishing the cement plant in Guyuk. He further assured the management team of BUA that government will make whatever is needed and provide the necessary support which will create enabling environment so that the BUA Cement company in Guyuk will become a reality.

He also expressed readiness of the government to protect the investment once it is established and told them that his administration will maintain the good relationship with the company for the benefit of the state.

BUA is Nigeria’s second largest Cement Producer by volume with cement plants in Sokoto and Edo States. The Company’s newest plant in Sokoto is expected to be operational in 2021. When completed, the Guyuk Cement Plant will bring BUA’s total capacity to 14million metric tonnes per annum.

Isaac Oyimah/Editor


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Drought Response: Madagascar receives $2.13m from African Risk - NaijaAgroNet

NaijaAgroNet:

The Government of Madagascar has received a symbolic cheque in the amount of USD 2,13 million from the African Risk Capacity Insurance Company Limited (ARC Ltd) to cover anticipated losses to livelihoods of its vulnerable population from the crop failure in the just concluded farming season, reports NaijaAgroNet.

The ARC payout is the result of drought insurance taken by the country with the support of the African Development Bank (the Bank) through its flagship programme, Africa Disaster Risk Financing (ADRiFi) Programme, which financed 100% of the 2019/2020 insurance premium for sovereign drought risk transfer for the Republic of Madagascar.

The payout held last Thursday, will be implemented to assist the lives and livelihoods of 600,000 vulnerable population affected by the drought, thereby preventing them from resorting to negative coping mechanism including eating their seeds, selling farm implements, internal displacement, forced migration etc.

The Minister of Economy and Finance, Richard RANDRIAMANDRATO, representing the Malagasy Government during the official handover ceremony stated in his speech that: "The drought insurance of African Risk Capacity is one of the sustainable solutions to strengthen the efforts of the Government and partners in the Southern region of Madagascar. It demonstrates the mutual assistance between friendly African countries to respond efficiently to natural disasters, particularly drought." Such a mechanism is beneficial for Madagascar as it will enable us to improve the conditions of farmers and the livelihoods of vulnerable populations in the "Great South" that are victims of recurrent drought, as well as to preserve their production capital. Early interventions to be implemented with this fund will focus on unconditional cash transfer and Cash for Work (CFW) for 15,000 vulnerable households, nutritional support for 2,000 children under 5 years of age, and water supply for 84,000 households. Thus, this insurance mechanism supports the implementation of the National Disaster Risk Management Policy and Strategy, particularly the promotion of financial resilience to climatic hazards.

Madagascar faces disaster risks from an increasingly variable and changing climate, which add to the challenges of widespread food insecurity. Due to its geographical position, the country is vulnerable to various climate shocks. Cyclones, floods, and droughts bring devastating consequences by putting considerable pressure on the country’s public finances as well as real GDP growth.

According to African Development Bank, natural disasters in Madagascar in 2017 caused an estimated USD 420 million in related damages. It is in this context that, in October 2019, Madagascar joined the ARC drought insurance risk Pool VI for the 2019/2020 crop season as one of the pilot countries of ADRIFI programme.

In his remarks, UN-ASG Mohamed Beavogui, the Director-General of African Risk Capacity said, “The payout made by ARC to support the drought-affected population in the Great South” region was made possible thanks to the leadership and commitment of the Government of Madagascar to protect its people. We also thank the AfDB for their laudable support through the ADRiFi programme. This is a vivid testimony that collaboration between African governments and development partners, both within and outside the region, using market approaches can go a long way in saving developmental gains on the continent.

“Our purpose in working with Member States to provide disaster risk insurance is targeted at promoting resilience and providing financial protection to the vulnerable population when perils occur”, remarked Lesley Ndlovu, the CEO of ARC Insurance Limited. “We are glad that this payout will assist the Government in quickly supporting its affected population to rebuild and recover from the effects of the drought and prevent them from resorting to negative coping mechanisms”, he concluded

In establishing a framework for collaboration, ARC and AfDB signed a Memorandum of Understanding (MoU) in March 2017 to support African states to manage disaster risks and to be better prepared to effectively respond to climate related perils that seriously affect the continent. It is within this framework that the Bank provided the financial support to the Government of Madagascar for the payment of its insurance premium over a period of 5 years (2019-2023) through the ADRiFi programme.

“The insurance policy payout is timely, with Madagascar also facing the challenges of dealing with the current COVID-19 pandemic. It demonstrates that risk transfer programmes can help countries manage the risks of climate-related disaster and release pressure on public finances when multiple crises occur,” said Dr. Jennifer Blanke, Vice President for Agriculture, Human and Social Development at African Development Bank.

With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the Rockefeller Foundation and the United States, ARC helps the member states of the Union to reduce the risk of loss and damage caused by extreme weather events affecting African populations by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, economical, objective and transparent manner. ARC is now using its expertise to help tackle other major threats facing the continent, including outbreaks and outbreaks.

Since 2014, 45 insurance contracts have been signed by ARC member states, representing USD 83 million in premiums paid for a total insurance coverage of USD 602 million to protect 54 million vulnerable people in participating countries.

“Madagascar’s accession to the drought insurance mechanism as part of this ADRiFi program is a very encouraging initiative. The collaboration between the Malagasy Government, ARC and the AfDB is still as fruitful in terms of developing a financial protection mechanism in the face of disaster risks. The sustainability of this tripartite collaboration will allow us to open doors of extensions to other risk areas of the country or even for other types of climatic hazards such as cyclones, floods and epidemics,” said General of Air Brigade Mamy Razakanaivo, Executive Secretary of the CPGU (Prevention and Support Unit for Emergency Management) within the Prime Minister's Office and Supervisor of the ARC program in Madagascar.

Isaac Oyimah/Editor

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Pic: Madagascar Minister of Finance, Minister of Foreign Affairs, Minister of Agriculture and ARC Partners during the ceremony.