Senegal will receive at least $22 million drought insurance compensation from continental firm, the African Risk Capacity Insurance Company (ARC).
ARC, in a press release, said the pay-out will cover losses from crop failures caused by the severe rainfall deficits in the 2019 agricultural season.
The African Union agency reiterated its strong commitment to working with member states to build resilience and reduce vulnerability against natural disasters in the continent.
It disclosed that a consortium of international NGOs that collaborates with the government, would receive the balance of $10 million, in line with an existing policy signed with Senegal for expedited response in the event of a drought.
“The vision of African Union in establishing ARC was to present a powerful value proposition that will help member states better understand their disaster risk profiles, access viable early warning tools, and develop a preparedness plan for protecting livelihoods of their vulnerable population from predictable natural disasters. The Government of Senegal has been exemplary in participating in various ARC risk pools since 2014,’” the statement quoted ARC Director General Mohamed Beavogui, as saying.
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 pay-out from ARC Insurance Ltd. With the expected pay-out, we will have the resources to ensure that our people get relief on time to better secure their livelihoods,’” he was quoted saying.
The expected pay-out will bring the total disbursements by ARC Ltd to the Government of Senegal to $38 million since 2014.
ARC assists member states to strengthen their capacities to better respond to extreme weather events and natural disasters, thereby achieving the food security for their populations.
Since 2014, 32 policies have been signed by member states with $73 million paid in premiums for a cumulative insurance coverage of $553 million for the protection of 55 million vulnerable population in participating countries.