Sharm El Sheikh, 14th November – The European Union (EU) Commission announced funding of EUR 9 million in the form of grants to the African Risk Capacity (ARC) at a special COP 27 event as part of marking the 10th anniversary of the specialized agency of the African Union.
With the world’s poorest climate mitigation and adaptation infrastructure, Africa is exposed to a wide range of weather-related disasters and climate-related outbreaks and epidemics, both of which are increasing in severity and frequency across the continent.
The EUR 9 million funding from the EU, which stems from the 11th EDF Intra-ACP Natural Disaster Risk Reduction Programme, will support the ARC’s efforts to strengthen disaster risk financing and insurance responses to the impact of natural disaster hazards in Africa to ensure its member states can better protect their vulnerable populations against climate-induced disasters and outbreaks and epidemics.
Speaking on behalf of the European Union, Ms. Carla Montesi, Director for Green Deal and Digital Agenda, Directorate-General for International Partnerships at the European Union Commission, declared that strengthening disaster risk financing responses to the impact of natural hazards is one of the strategic priorities of the EU cooperation with African countries. “Through ARC, our programme will facilitate continued support to African governments in strengthening their capacities to better plan, prepare and respond to effects of natural hazards related disasters.”
“We are extremely grateful for this funding from the EU as it will enhance our efforts to support our member states to ensure that we are able to provide world-class solutions at a time like this when the climate crisis is demanding attention,” said UN ASG and ARC Group Director-General Ibrahima Cheikh Diong. “As we celebrate our decade of existence as an African-Union-mandated organisation, we recognise the tremendous contribution and support received from the EU and are looking forward to building a stronger partnership to the benefit of the African people.”
About the African Risk Capacity Group
The African Risk Capacity Group consists of ARC Agency and ARC Limited. ARC Agency was established in 2012 as a Specialized Agency of the African Union to help its member states improve their capacities to better plan, prepare and respond to climate-related disasters. ARC Ltd, the financial affiliate, is a mutual insurance facility providing risk transfer services to member tates through risk pooling and access to reinsurance markets. ARC was established on the principle that investing in preparedness and early warning through an innovative financing approach is highly cost-effective and can save upward of four Dollars for every Dollar invested ex-ante approaches.
With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the European Union, the Rockefeller Foundation, and the United States, ARC assists the AU Member States in reducing the risk of loss and damage caused by extreme weather events affecting Africa’s populations by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, cost-effective, objective, and transparent manner. ARC is now using its expertise to help tackle some of the other most significant threats faced by the continent, including floods and outbreaks & epidemics.
Since 2014, 90 policies have been signed by the member states for cumulative insurance coverage of US$900 million for the protection of 90 million vulnerable populations in participating countries.
For more information, please visit: www.arc.int