News / National
Zimbabwe gets US$31.8 million drought insurance cover
06 Jul 2024 at 07:04hrs | Views
Zimbabwe has received US$31,8 million from the African Risk Capacity, an arm of the African Union, to help mitigate the effects of the devastating El Nino induced drought.
Receiving the insurance cover, Finance Minister Mthuli Ncube said the funding is a boost to Zimbabwe's resilience against climate-induced adversities.
Zimbabwe became a member of the African Risk Capacity (ARC) Agency in 2012.
It offers innovative disaster risk financing solutions and assists member states develop contingent measures for natural disasters.
"Today, I am honoured, to, on behalf of the Government of Zimbabwe, receive the ARC drought insurance pay-out amounting to US$16.8 million.
"The pay-out is complemented by pay-outs to our ARC replica partners amounting to US$6.1 million to the WFP and US$8.9 million to Start Network.
"Zimbabwe will therefore, receive a total pay-out of US$31.8 million.
"The insurance pay-out will be distributed to approximately 508,435 vulnerable households in 27 districts across the country," he said.
Ncube said the pay-out will ensure that all seven million starving citizens get food aid.
"The ARC Pay-out therefore complements government efforts in ensuring food security, and the immediate response is crucial for the resilience of our communities, ensuring that no household will suffer from hunger," he said.
The El Nino induced drought has seen AU paying out US$60 million to Zimbabwe, Malawi, Mozambique and Zambia.
Receiving the insurance cover, Finance Minister Mthuli Ncube said the funding is a boost to Zimbabwe's resilience against climate-induced adversities.
Zimbabwe became a member of the African Risk Capacity (ARC) Agency in 2012.
It offers innovative disaster risk financing solutions and assists member states develop contingent measures for natural disasters.
"Today, I am honoured, to, on behalf of the Government of Zimbabwe, receive the ARC drought insurance pay-out amounting to US$16.8 million.
"The pay-out is complemented by pay-outs to our ARC replica partners amounting to US$6.1 million to the WFP and US$8.9 million to Start Network.
"Zimbabwe will therefore, receive a total pay-out of US$31.8 million.
"The insurance pay-out will be distributed to approximately 508,435 vulnerable households in 27 districts across the country," he said.
Ncube said the pay-out will ensure that all seven million starving citizens get food aid.
"The ARC Pay-out therefore complements government efforts in ensuring food security, and the immediate response is crucial for the resilience of our communities, ensuring that no household will suffer from hunger," he said.
The El Nino induced drought has seen AU paying out US$60 million to Zimbabwe, Malawi, Mozambique and Zambia.
Source - zimlive
