The African Risk Capacity (ARC) Insurance Company will be paying Senegal at least $22 million in drought insurance compensation. The pay-out is expected to cover losses from crop failures caused by the severe rainfall deficits in the 2019 agricultural season, the African Union (AU) agency said in a press release.
ARC also reiterated its strong commitment to working with member states in building resilience and reducing vulnerability against natural disasters in the continent.
“The vision of (the) African Union in establishing ARC was to … help member states better understand their disaster risk profiles, access viable early warning tools, and develop a preparedness plan for protecting livelihoods of their vulnerable population from predictable natural disasters,” ARC Director General, Mohamed Beavogui, said.
The agency further revealed that a consortium of international NGOs that collaborates with the government would receive the balance of $10 million, in line with an existing policy signed with Senegal for expedited response in the event of a drought.
Read more on: The East African