The African Risk Capacity (ARC) has commended the African Development Bank (AfDB) for its approval of the Africa Disaster Risk Financing Programme (ADRiFi) Programme.
Giving the commendation shortly after the AfDB announced the funding arrangement for the programme, the Director-General of ARC, Mohammed Beavogui, said that “this is one of those moments when one feels very proud as an African.”
He enthused: “The faithfulness and commitment of President Adesina and his team to the realisation of this initiative begs for emulation by other regional and multilateral partners. This is critical for us to achieve food security in the continent through ensuring that Africa’s vulnerable populations are insured against the often-overwhelming impacts of climate-induced natural disasters.”
Saluting the unstinting support of the AfDB’s President, Dr. Akinwunmi Adesina, and tenacious hard work of the AfDB and ARC teams involved in birthing the ADRiFi programme, the Board Chairperson of African Risk Capacity, Dr Ngozi Okonjo-Iweala, said: “The disaster risk financing landscape in Africa has received an empowering shot in the arm…let us now move quickly to extend our disaster risk insurance coverage to more member countries which, before now, could not join the ARC pool owing to fiscal constraints.”
In her remarks, the Chief Excutive Officer of African Risk Capacity Limited, Dolika Banda, appreciating the huge commitment from both institutions that went into the realisation of the trailblazing initiative.
She said:“We now know that collaborative partnerships work when there is good fidelity. ARC will leverage on the crest of this great achievement to connect with other institutions towards a more inclusive disaster risk insurance coverage for Africa.”
It would be recalled that the discussions to establish the ADRiFi as a mechanism to enhance the resilience and response to climate shocks and natural disaster risks in Regional Member Countries (RMCs) was formalized in March 2017.
Since then, the African Development Bank and the African Risk Capacity, under the signed technical collaboration agreement began to orchestrate activities to enhance risk management infrastructure and policy across Africa as well as supporting countries in building resilience against climate shocks.
During the African Development Bank Annual Meetings 2018 in Busan, South Korea, a special session on ‘Climate and Disaster Risk Financing’ gave a fresh impetus to the realization of the set objectives.
The ADRiFi programme is a timely response for a premium financing support request from a number of RMCs to bridge the resource gap impeding the necessary participation in the African Risk Capacity insurance pool.
The ADRiFi Programme will focus on national institutional strengthening, policy development, risk profiling, and contingency planning for disasters for participating RMCs.
In line with the agreed structure, it will support countries in developing climate risk profiles, strengthen contingency plans and support risk transfer through premium subsidies of up to 50% over a five-year period. By the fifth year of the programme, the country will be paying the full premium.
The ADRiFi programme is open to all AfDB regional member-countries that are ARC member-states and signatory to the ARC Establishment Treaty.