[ACCI-CAVIE] The United Nation’s World Food Programme (WFP) has received $15.4m worth of insurance payouts from African Risk Capacity (ARC) Limited to help 490,000 people in West Africa impacted by drought in 2022.
The ARC was established in 2021, it is a provider of parametric disaster insurance products to countries and risk transfer services through risk pooling and access to reinsurance markets to countries and other entities in Africa.
WFP is receiving payouts of $7.2m for Burkina Faso, $187,600 for The Gambia and $8m for Mali. Assistance will also include nutritional support for children aged 6-23 months and pregnant and nursing women.
According to the announcement, affected people in these countries will receive a cash transfer from March to May 2023.
“Communities in Mali contribute very little to the climate crisis, yet the impacts are forcing them into a food crisis,” says Eric Perdison, WFP Country Director in Mali. “This funding will enable WFP to reach hundreds of thousands of food-insecure people affected by climate-induced negative impacts, with cash and nutrition assistance.”
Farmers in West Africa suffered losses and damages to their crops and livelihoods due to extensive drought impacting the 2022 agricultural season.
This has knock-on effects throughout the region as food availability is reduced and prices soar. Climate insurance enables communities to recover from losses and damages, preventing them being pushed into hunger.
Since 2019, WFP has protected 4.8 million people in six African countries with insurance policies from ARC. To date, WFP has received eight payouts totalling US$25.4 million for five countries, which provided cash and food assistance, nutrition support and emergency asset creation to more than 790,000 people.
By Kassandra Jimenez-Sanchez and LB