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Tuesday, January 31, 2023
HomeBusiness€18 Million German Climate Insurance Facility for Africa

€18 Million German Climate Insurance Facility for Africa

The Government of the Federal Republic of Germany during the ongoing United Nations 2021 United Nations Climate Change Conference (COP26) announced an €18million subside to help Africa ensure climate change.

By Tendai Mujeyi

The fund which shall be distributed through the African Risk Capacity, ARC, an African Union initiative consisting of 35 AU Member States, providing insurance for droughts and tropical cyclones, will seek to facilitate preparedness in meeting the risks of climate change.

“This prevents humanitarian needs from escalating, ultimately saving lives, protecting livelihoods and assets, and safeguarding development gains. Since 2014, 62 policies have been signed by the Member States for cumulative insurance coverage of US$720 million for the protection of 72 million vulnerable populations in participating countries.” A press statement issued by ARC emphasised.

The support shows Germany’s commitment to meeting the African humanitarian crisis which has been heightened by the toll COVID mutations have had on government budgets as development partners and the government’s failure to meet the escalating humanitarian needs.

“Germany has been a long-standing supporter of the African Risk Capacity. Earlier this year, in Germany we were affected by devastating floods – we have experienced ourselves the importance of preparedness and the vital role that insurance can play in recovery. We are therefore delighted to be able to extend support to African nations who have been so badly affected by the covid-19 pandemic so that they can take steps to prepare well to face the rising challenges of climate change.” Christian Krämer, Member of the Management Committee at KfW Development Bank emphasised that

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The grant was commended for meeting the needed support in climatic disaster risk management by Germany in Africa, with calls for the support ARC’s aim of facilitating an insuring culture among African states.

“We are extremely delighted about the consistent support of the German Government to disaster risk reduction and mitigation in our Member States. The grant is a clear testimony of the value of smart partnerships for smart disaster risk management and financing for early action. Through this assistance, we are optimistic that other partners will embrace our pitch for a Continental Premium Support Facility to help institutionalize sovereign parametric insurance culture in the region” Ibrahima Cheikh Diong, United Nations Assistant Secretary-General / Director-General of the African Risk Capacity Group

African Risk Capacity (ARC) Group is an AU specialist agency consisting of the ARC Agency and ARC Insurance Company Limited (ARC Ltd) established on the principle of fostering disaster preparedness and early warning mechanisms for disaster risk management.

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