About African Risk Capacity
The African Risk Capacity (ARC) is a Specialized Agency of the African Union established to help African governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters.
Latest updates
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ARC Signatories for Pool I
What we do
Drought Insurance
ARC’s initial product offering and the first parametric insurance product for drought in the world, the drought risk model and insurance product helps African countries to quantify drought risk and respond early to the impacts of drought events.
River Flood Insurance
Responding to pressing climate risks on the continent, African Risk Capacity is developing a risk model and parametric insurance product for river floods.
Tropical Cyclone
African Risk Capacity has been developing a product to provide rapid financing and early response to tropical cyclones and the wind, storm surge and wave damage that they cause.
Outbreaks & Epidemics Insurance
African Risk Capacity is developing a parametric model and insurance product to address countries’ financing needs in containing outbreaks of viruses and diseases.
Extreme Climate Facility (XCF)
ARC is developing the Extreme Climate Facility (XCF), a data-driven, multi-year, insurance-like vehicle that will provide financial support to eligible AU countries based on a multi-hazard index.
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ARC Member States
African Risk Capacity is run by 34 African Union Member States that signed the ARC Establishment Treaty to create a Specialised Agency dedicated to helping African governments improve their disaster risk management capacities.
Our Impact
$
30000000
in payouts for early responses
>
2000000
vulnerable people assisted
>
2000000
in drought risk coverage provided
More Success Stories
Our main services
Drought Insurance
River Flood Insurance
Tropical Cyclone
Outbreaks & Epidemics Insurance
Extreme Climate Facility (XCF)
How we work
African Risk Capacity provides capacity building for and access to a comprehensive disaster risk management & financing system. Working with closely with African governments, we implement efficient and sustainable solutions that address country needs.

Customised Early Warning
Africa RiskView is a state-of-the-art drought risk model & software that helps countries quantify their disaster risk & monitor drought impacts.

Contingency Planning
African Risk Capacity works with governments and in-country experts to create coordinated contingency plans before catastrophe strikes.

Parametric Insurance
African Risk Capacity disburses financing to fund pre-approved contingency plans to respond rapidly and predictably to disasters.

Risk Pooling & Risk Transfer
Employing innovative financing mechanisms, ARC Insurance Company Limited pools risk across Africa and transfers it to international risk markets.
What others say about our work
We need better policies and planning to allocate water resources and to distribute the risks arising from water‑related disasters in a more equitable way. One successful example is the African Risk Capacity, which has created a risk pooling facility to meet the needs of communities hit by severe drought.
Amina J. Mohammed
Deputy Secretary-General of the United Nations
What we would like to see is more African governments taking advantage
of this institution – of our institution. This is solidarity combined
with innovation in practice.
Thomas Kwesi Quartey
Deputy Chairperson of the African Union Commission
Africa contributes no more than 2-3% of greenhouse gas emissions but suffers disproportionately from the negative impacts of climate change. Africa has been shortchanged by the climate financing architecture. Therefore, we need instruments that will help mitigate climate risks.
Akinwumi Adesina
President of the African Development Bank
Our Impact
$
30000000
in payouts for early responses
>
2000000
vulnerable people assisted
>
2000000
in drought risk coverage provided
More Success Stories