African Risk Capacity Group (ARC Group) and African Development Bank provide $5.3 million to Zambian government to fight drought – Zambia


Lusaka, Zambia June 15, 2022 – Representatives of the African Risk Capacity Group and the African Development Bank presented a symbolic check for $5.3 million to the Zambian government, to help the country recover from the extreme drought of the 2021 agricultural season/ 2022.

The payout is the result of drought insurance taken out by the Zambian government under the Africa Disaster Risk Financing Program Multi-Donor Trust Fund, a fund supported by UK governments, through the Foreign, Commonwealth and Development Office, and Switzerland. , through the Swiss Agency for Development and Enterprise. The fund is managed by the African Development Bank. The disbursement will enable the country to carry out emergency response activities in drought-affected communities, through the provision of cash transfers and food assistance to ensure food availability for targeted households during the drought. lean season.

The Acting President of Zambia, Her Honor WK Mutale Nalumango, today received the payment check on behalf of the Zambian government. In her keynote address, the Acting President welcomed the ARC disbursement to the Republic of Zambia, saying the funds would help the government meet the relief and livelihood reconstruction needs of the most vulnerable households affected by the the drought of 2021/22.

His Honor WK Mutale Nalumango expressed his gratitude that his government through the Ministry of Finance and the Disaster Management and Mitigation Unit (DMMU) has taken out insurance as a mitigating measure against the drought .

“As the National Treasury experiences unlimited demand for the provision of public goods and services, the government stands ready to support disaster risk transfer initiatives that ease the burden on government. I urge other organizations such as the World Food Program and other international and local civil societies to join us in helping to expand ARC insurance coverage in Zambia by partnering with my government to take action and microinsurance, added the acting president.

The adverse effects of climate change and climate variability have caused droughts in Zambia in 2021 and 2022. The substantial lack of rain affecting agricultural production has led to severe food insecurity in the southern and western districts of the country.

The Zambian government had previously signed a Memorandum of Understanding with the African Risk Capacity Group to participate in the 2021/2022 Drought Risk Pool to better cope with the drought and protect vulnerable populations from its adverse effects. . The Zambian government has taken a budgetary allocation for the premiums from its national budget and has requested additional financial support from the Swiss Agency for Development and Society and the African Development Bank to maintain the insurance policy for the 2021/22 agricultural season.

“The African Development Bank is delighted to see this disbursement from the African Risk Management Group to the Zambian government. We expect this to be the start of continued support to help the country build resilience to the shocks of climate change. The Bank’s support has provided assistance to farming communities hard hit by drought and low crop yields, by enabling the Zambian authorities to provide them with cash payments and prevent them from consuming their seeds as food, abandon agriculture as a means of subsistence or migrate in search of food and non-existent jobs”, said AfDB Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford.

“ARC offers an African solution to one of the continent’s most pressing challenges, climate change shocks, by shifting the burden of climate risk from governments to ARC through sovereign insurance,” said Dr. Abdoulie Janneh, Vice Chairman of the Board of ARC Group and Chairman of the Board of ARC Ltd. “The Zambian government is our trusted partner, and we stand with it to ensure that its vulnerable population and livelihoods are protected from extreme weather-related disasters,” he added

Funds flowing to the Zambian government will also boost the local economy and help communities build back better.

“We are extremely honored by the confidence placed in us by the Zambian government. We are confident that this payout will help the country help its affected population recover from the effects of the drought and prevent them from resorting to negative coping mechanisms,” said UN Under-Secretary-General and ARC Group Director-General Ibrahima Cheikh Diong.

Media Contacts

For the African Risk Capacity Group (ARC Group): Simon Pierre Diouf,
Communications officer, email:

For the Disaster Management and Mitigation Unit (DMMU): Mathews Musukwa,
Senior Information, Education and Communications Officer, Email:

For the African Development Bank (AfDB): Alphonso Van Marsh, Principal Communications and Events Officer, email:

About the Africa Risk Capacity Group

The African Risk Capacity Group consists of ARC Agency and ARC Limited. The ARC Agency was established in 2012 as a specialized agency of the African Union to help its Member States improve their capacities to better plan, prepare for and respond to climate-related disasters. ARC Ltd is a mutual insurance company providing risk transfer services to Member States through risk pooling and access to reinsurance markets. ARC was created on the principle that investing in preparedness and early warning through an innovative financing approach is highly cost effective and can save up to four dollars for every dollar invested in ex ante approaches. .

With support from the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the European Union, the Rockefeller Foundation and the United States, ARC is helping States AU members to reduce the risk of loss and damage caused by extreme weather events. affecting the people of Africa by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, cost-effective, objective and transparent manner. ARC is now using its expertise to help tackle some of the other most significant threats facing the continent, including floods, disease outbreaks and epidemics.

Since 2014, 90 policies have been signed by Member States for a cumulative insurance coverage of US$900 million for the protection of 90 million vulnerable populations in participating countries.

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