Press Release issued by ARC Ltd|JOHANNESBURG, 13 February 2024 – African Risk Capacity Limited (ARC Ltd.) and the United States Government (USG) have entered into a landmark US$11.7 million partnership to safeguard food security and strengthen climate resilience in Africa by increasing access to parametric insurance. Parametric insurance provides rapid payouts based on pre-agreed triggers, allowing timely responses to natural disasters. Firstly, governments will be assisted with capacity building to manage climate change-induced disasters through the effective use of parametric insurance. It will also focus on aligning domestic policy frameworks with regional policies to embed parametric insurance in existing climate adaption frameworks. The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.
