Risk Pools

The African Risk Capacity risk pools aggregate risk from across the continent each season to take advantage of the natural diversity of weather systems across Africa. The risk pool then takes on the risk profile of the group rather than the risk profile of each individual country, combining the uncertainty of individual risks into a calculable risk for the group. 

Since it is unlikely that droughts, floods and tropical cyclones will occur in the same year in all parts of the continent, not every country participating in the pool will receive a payout in a given year. Because a continental risk pool’s exposure to covariant risk would be significantly smaller than a given country’s or region’s exposure, an ARC pool could manage climate risk with fewer funds than if each country financially prepared for its own worst case scenario individually.

 

Pooling
Risk Pool VI (2019/2020)

ARC’s risk pool covering the 2019/2020 agricultural season included 11 countries: The Gambia, Mali, Cote D’Ivoire, Niger, Senegal, Chad, Zimbabwe, Madagascar, Togo,  Burkina Faso, Mauritania

Risk Pool V (2018/2019)

ARC’s risk pool covering the 2018/2019 agricultural season included 3 countries: BURKINA FASO, SENEGAL, THE GAMBIA

Risk Pool IV (2017 - 2018)

ARC’s risk pool covering the 2017/2018 agricultural season included five countries: Senegal, the Gambia, Mauritania, Burkina Faso, and Mali.

Risk Pool III (2016 - 2017)

Entering its third year, ARC welcomed one new member. The risk pool for the 2016/2017 agricultural season included the following countries:

Burkina Faso, Niger, Senegal, The Gambia,  Mali, Mauritania

Risk Pool II (2015 - 2016)

The risk pool for the 2015/2016 agricultural season included the following countries: Kenya, Mauritania, Niger, Senegal, The Gambia, Mali, Malawi

Risk Pool I (2014 - 2015)

The African Risk Capacity’s inaugural risk pool launched in 2014 and covered the 2014/2015 agricultural season. The risk pool consisted of four countries: Kenya, Mauritania, Niger, and Senegal.