Declaration of the African Risk Management Capacity (ARC) on the occasion of the International Day for Disaster Risk Reduction



Declaration of the African Risk Management Capacity (ARC) on the occasion of the International Day for Disaster Risk Reduction

One of the issues to be addressed is the affordability of premiums, as it is quite expensive to insure against natural disasters.

JOHANNESBURG, South Africa, October 13, 2021 / APO Group / –

As COP26 approaches, we should focus on the devastating impact of climate change as we mark today the International Day for Disaster Risk Reduction, celebrated annually to raise awareness of the risks associated with disaster risk reduction. disasters.

That’s the word of Lesley Ndlovu, CEO of African Risk Capacity (ARC) Limited, a specialist insurance company that provides parametric coverage to African countries against extreme weather events and natural disasters.

Alarm bells for humanity have been sounded around climate change issues, following the recent publication of the Intergovernmental Panel on Climate Change and increased media interest in the talks on the UN on the climate in November.

In Africa, the UN Special Report on Drought has warned that drought may well be the next pandemic as Africa faces “exponential collateral damage” posing systemic risks to its economies, its investments in infrastructure, water and food systems, public health, agriculture and livelihoods, and threatening to reverse its modest development gains and sink into higher levels of extreme poverty.

There is simply no time to waste in “taking decisive action”.

Changing the disaster risk architecture

Advocating for a change in the current disaster risk architecture, Ndlovu believes the response is unacceptably slow, ineffective and reactive, as climate disasters increasingly threaten Africa, a continent that is suffering the most climate change, but which contributed the least to climate emissions.

“It is taking far too long for African countries to mobilize the immediate resources they need for relief efforts, to save lives and livelihoods. The traditional response to disasters is extremely slow and inefficient, and by the time governments and NGOs have raised enough money to respond significantly, the problem has worsened and additional funding is needed, ”says Ndlovu.

The role of the ARC Group as a parametric insurer is of crucial importance in building resilience and ensuring that a country is able to bounce back quickly from a natural disaster. “We monitor the rainfall of the countries in the risk pool and ARC Limited’s sovereign insurance payments are triggered when the system reveals that there has not been enough rain, before the droughts reach a stage. crisis, farmers are left with nothing and people are starving, ”says Ndlovu.

The program also helps countries build their capacity to manage climate-related risks. In this way, he tries to transform the disaster risk management architecture to be proactive and not reactive, explains Ndlovu.

“When it comes to mitigating and managing risk, you have to look at why governments don’t act. On the insurance side, one of the problems to be solved is the affordability of premiums because it is quite expensive to insure against natural disasters and the payment of premiums competes with other national priorities ”, explains Ndlovu.

Sovereigns who participate in the ARC program must also develop a contingency plan that sets out at a very high level how the government would spend any insurance payments they receive from ARC Limited.

“With this plan, we are making sure that the funds reach the intended beneficiaries. Having a plan dramatically increases the speed of execution because at some point the government has received the funding, they already have a plan on how to disburse it, ”he says.

Insurance builds resilience

Emily Jones, Climate and Disaster Risk Finance Advisor for WFP, highlights the challenges of convincing authorities to be more proactive than reactive in preventing human suffering and hardship when events such as drought occur.

“Unfortunately, no single person or organization can effect the necessary change on their own. Change begins with building resilience and assurance plays an important role in this regard, especially in climate change,” Jones said.

Governments pay a premium each year and receive the agreed payment if and when a predicted disaster occurs. “This money can then be used to help those affected, with the remainder of the payment going to cover other consequences that might not have been expected, such as conflict or loss of progress in terms of important development projects. local development, ”she says.

“Humanitarians strive to emphasize the need to anticipate crises and act before they occur to avoid human suffering. After all, why wait if you don’t have to?

ARC Limited is the first African company to join the Net-Zero Asset Owner Alliance organized by the UN. With $ 100 million in its kitty, the organization has the largest balance sheet dedicated to climate risks in Africa.

Short Link:


NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @

Recent Posts

Zimbabwe commemorates World Food Day Consensus candidates win at Niger APC congress WFP and Khalsa Aid International enter into partnership to help the most vulnerable in two critical food crises 90% of schools in Nigeria lack hand-washing facility for children – UNICEF Borno APC returns executives for a second term Visit of Minister of State for External Affairs Shri V. Muraleedharan to the Republic of Sudan and the Republic of South Sudan (October 18-22, 2021) APC Congress: Omotoso emerges Ekiti chairman NGO boss decries rising crime wave Misuse of social media, a trigger of post-election crises – ECOWAS Police Chiefs Africa, a reliable friend, partner of China – Envoy FCTA set to attract youths to agriculture for sustainable livelihoods – Secretary Divided Nigeria will not survive – FG Statement attributable to the Spokesman for the Secretary-General – on the Central African Republic New Tin-Can-port jetty to take 2m off Lagos gridlock daily – FG Capacity building for yellow fever laboratory screening in South Sudan Russia tops 1,000 daily virus deaths for first time APC state Congress: Borno returns executives for second term Hundreds protest in Sudan’s capital against government There is hope; Northeast is at turning point – UN Cape Verde ready for credible elections Oct. 17, official tells ECOWAS mission N20bn bailout: Kogi govt demands apology from EFCC UK provides nearly £ 30million for humanitarian disaster in northern Ethiopia UN-Nigeria Jubilee Fellowship: 350,000 youths, 9,000 coys register in 10 days – Yahya PDP Congress: Atiku, Fintiri, 2,612 other delegates cast votes in Adamawa Accept election results to prevent violence – Police Chiefs tell ECOWAS politicians Insecurity: Coalition, author sue for unity, progress Myanmar junta chief excluded from ASEAN summit Abdullahi Abbas, Danzago set emerge factional chairmen as Kano APC holds parallel congresses Navy ship USS Hershel “Woody” Williams visits Maputo, Mozambique Security review after British MP stabbed to death in ‘terror’ attack Mozambique becomes first country to receive emissions reduction payments from the Forest Carbon Partnership Fund Slapfight Nigeria commences training for athletes, officials France pays tribute to teacher beheaded over Mohammed cartoons MEDIA INVITATION: update on the ongoing consultation process on the future of women’s football Bali earthquake kills three, injures seven U.S. Embassy Chargé d’Affaires and USAID National Representative Participate in Food Distribution to Commemorate World Food Day NASA launches Lucy probe to explore Jupiter asteroids IMF staff completes virtual mission to Lesotho Peace Corps helps launch vaccination campaign in Mantasoa commune Macron marks 60 years since Paris Algeria protest massacre Minister of State Annen in North Africa US government launches new project to fight corruption and wildlife trafficking in Madagascar Vibrant Afghan radio reduced to religious relic Thief flees in tractor after bungled Australian robbery CAS tasks troops on professionalism, discipline COVID-19: PSC issues revised international travel protocol into Nigeria World Food Day: Food waste, threat to food security – Minister NYSC tasks 5m ex-corps members on national unity Buhari congratulates newly elected NUJ Executives Hand washing can reduce infections by 50% – Minister