A $7.1m payout from Africa Risk Capacity is to be used by the UN’s World Food Programme to help over 200,000 Malians currently suffering a food crisis following droughts and shortages.
The payment, understood to be just the first, is reportedly part of an assurance mechanism to support the implementation of a national disaster risk management policy and strategy.
In 2021, Mali experienced the most severe lack of rains in five years caused by periodic dry spells and low rainfall, putting 1.9m people across the country at risk of severe food insecurity, mostly in the regions of Kayes, Gao, Mopti, Segou, and Timbuktu. In the case of Mali, however, the impacts of drought have been particularly exacerbated by 10 years of conflict and COVID-19.
Lesley Ndlovu, CEO of ARC, has reportedly said that having such a plan dramatically increases the speed of execution because receiving governments already have plans on its distribution.
Malvern Chirume, CUO of ARC, went further, saying that the collaboration was a good example of how the public and private sectors can work together.
He added: “These solutions require a multi-faceted approach and as a parametric insurer, our role extends beyond simply getting money into the hands of those institutions that can help vulnerable people affected by these events. Our role as ARC includes building resilience and embedding a proactive approach to disaster risk management.”
With this climate insurance payment, WFP will provide early food assistance through cash transfers to 161,000 women, men and children affected by climate shocks. Over 20,000 children aged from 6 to 23 months, and pregnant women and breastfeeding mothers will receive nutritional support and services.
To reinforce communities’ resilience to climate shocks, 23,000 people will benefit from community asset building programmes such as pastoral wells, water towers and fishponds that will help diversify their production and livelihoods and reduce the impact of future rains deficiencies.
