African Union insurance agency injects US$1.4 million as Zim’s drought risk payout

By Staff Reporter

A specialised agency of the African Union has injected a US$1.4 million to Zimbabwe’s under the drought risk insurance payouts to support extensive drought response efforts in Zimbabwe.

The payout extended by Africa Risk Capacity  (ARC) are a result of drought insurance policies bought by Zimbabwe and United Nations World Food Program to cover the 2019/20 rainfall season.
Zimbabwe’s finance minister, Mthuli Ncube said the funds will go a long way to assist starving citizens.

“These payouts will contribute in funding the early response measures put in place by government and the WFP. Our objective during the pandemic is to save lives and livelihoods. Approximately 155 000 families in the highly vulnerable districts of Buhera, Uzumba Maramba Pfungwe, Chivi, Binga and Bulilima will receive support,” he said.

Ncube said the payout extension is evidence that the government of Zimbabwe is taking measures of cushioning its fiscus against natural disasters in the country and underscored that the payout will complement existing social safety nets in place to counter drought effects.

Mr Mohamed Béavogui
Director-General and United Nations Assistant Secretary General

Commenting on the ARC payout, UN assistant secretary general and outgoing ARC director general, Mahommed Beavogui said the payout is cause for celebration.

“Although we can never celebrate a disaster, it calls for celebration when a government is evidently taking steps of hedging its investments in food security against natural risks to broaden fiscus flexibility when a disaster strikes,” he said.
Zimbabwe experienced a severe drought which left around 7.7 million of the populace in need of food aid.

Natural disasters like Cyclone Idai and the current Covid19 pandemic combined with an eroding local currency and hyperinflation which have wiped out incomes have further weakened the citizens position to recover from the droughts impact.

Several development partners continue to work closely with the Zimbabwean government to support the communities.