Home Sci-TechEnvironment Zimbabwe: Zim to Unlock Insurance Against Extreme Weather Risk

Zimbabwe: Zim to Unlock Insurance Against Extreme Weather Risk

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Germany’s state development bank KfW and the World Food Programme (WFP) have committed to contribute US$2 million each, to African Risk Capacity Insurance Company Limited (ARC) to support premium financing of insurance against risks caused by extreme weather events in Zimbabwe, Treasury has said.

Zimbabwe will contribute US$500 000 and this will unlock maximum insurance cover of US$20 million. The ARC provides capacity building on preparedness for climatic shocks, as well as insurance against risks such as droughts.

Following the Government’s participation in the ARC drought risk insurance policy, complemented by the United Nations WFP Replica Policy for the 2019/20 agricultural season, Zimbabwe received a total pay-out of US$1,75 million in June last year.

The pay-out assisted a substantial number of the country’s vulnerable households in selected districts, through disbursement of unconditional cash transfers to food insecure and labour-constrained households (chronically ill, older person headed households) in the worst drought-affected wards. According to the Treasury, a total of 77 767 households from Chivi, Binga, Bulilima, Buhera and Uzumba.

“Zimbabwe is committed to participate in the 2020/21 ARC programme,” said the Treasury.

“To relieve fiscal challenges that member states face in paying their premiums compounded by the effects of the Covid-19 pandemic, ARC has facilitated application of premium subsidy from KfW of German Government towards premium funding for the 2020/21 agricultural season.