Climate insurance: the African Risk Capacity Group (ARC) in Malawi and Sudan

Determined to offer its Member States innovative products against the risks of climate disasters, while taking their concerns into account, the African Risk Capacity Group (ARC), headed by its Managing Director, Ibrahima Cheikh Diong, has recently visited Malawi and Sudan.

As a specialized agency of the African Union at the service of its Member States, the ARC is committed, through its new strategy focused on the diversification of its products and the establishment of intelligent partnerships, to play fully its role in helping governments to strengthen their national disaster risk management systems.

The two official visits to Malawi and Sudan thus allowed ARC to meet with the authorities of the two countries in order to share the new vision of the institution and to conduct a review of cooperation with these two Member States.

“In order to be more effective in our role of supporting our Member States, it is important that we can reach out to them to listen to them and receive strategic advice from them that will help improve our collaboration and promote adaptation and resilience to the risks of natural disasters, ”explains Ibrahima Cheikh Diong.

Mr Diong, Under Secretary General of the United Nations and CEO of the ARC Group, together with His Excellency Dr. Sidi Ould Tah, Director-General, BADEA.

Discussions with the authorities revolved, on the one hand, around the general policy of the two countries in terms of disaster management and, on the other hand, on the development of new products that meet the country’s demand. In addition, ARC is already fully involved in the implementation of its drought and tropical cyclone insurance products, two important products for Malawi and Sudan.

The issue of resource mobilization was also discussed during the discussions. To support its Member States, ARC will adopt a personalized approach that will take into account the needs of the countries in order to offer tailor-made insurance premiums. In addition, ARC will explore other innovative financial products that will complement risk transfer through insurance.

The discussions also highlighted the importance of developing strategic partnerships with other sectors, bearing in mind that solutions cannot just come from transferring risk through insurance. We will need to call on other organizations offering the same products and who can make a contribution by sharing their expertise.

Likewise, the discussions brought to the fore the issue of gender, which is a priority for the CRA. The various ministries met are committed to strengthening the integration of the gender dimension in their disaster management programs.

Malawi and Sudan are two historic members of the ARC. The former has played a crucial role since the creation of the ARC in 2012, becoming the first country to sign a pre-participation memorandum of understanding with the ARC and subsequently to subscribe to a security policy. drought insurance in 2014, to cover the 2015/2016 agricultural season. As Malawi prepares to assume the presidency of SADC in the weeks to come, this collaboration with ARC could serve as an example for member states of this organization.

Sudan has also remained a privileged partner of ARC since 2018, when the memorandum of understanding was signed. In order to benefit from the full range of products that the ARC offers, Sudan has also engaged this year in the process of ratifying the ARC Treaty. The Government of Sudan is also chairing the ARC Conference of the Parties for the year 2021, which opens up new prospects for close collaboration in natural disaster risk management.

ARC is determined to continue this momentum, by putting its Member States at the heart of its activities while pursuing the development of innovative solutions to the challenges of extreme climate events for African nations.

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