The Government of Senegal is set to receive at least $22 million from the African Risk Capacity Insurance Limited (ARC Ltd) to cover losses from crop failures driven by drought in the 2019 agricultural season.
In August 2019, Africa RiskView, the software underpinning the Arc parametric model, informed the Government of irregular and insufficient rainfall in western regions of Senegal, warning that at least 964,000 people will be impacted by this year’s rain deficit.
Pre-agreed parameters under the insurance arrangement means that the number of people that will be affected is above the threshold for the triggering of an ARC Ltd insurance payout.
The end of the farming season is on November 21st, 2019 and the payout is expected to happen two weeks after this. Of the $22 million, the Government of Senegal will receive at least $12 million and the Start Network, a consortium of international NGOs that works with the Government, will receive $10 million. An announcement explains that this is in line with an existing policy signed with the government for early and expedited response in the event of a drought.
“We were among the first countries to embrace the African Risk Capacity mechanism for the protection of our people from recurring droughts. This is the second time the Government of Senegal is receiving payout from ARC Insurance Ltd. With the expected payout, we will have the resources to ensure that our people get relief on time to better secure their livelihoods,” said Abdoulaye Noba, Director of Civil Protection, and Programme Supervisor for the Government of Senegal’s work with African Risk Capacity.
The most recent payout will take the total disbursements by ARC Ltd to the Government of Senegal to $38 million since 2014.
