AfDB, agency partner in financing insurance against Africa climate disasters

The African Development Bank (AfDB) and African Union agency African Risk Capacity Agency (ARC) will finance insurance against adverse weather to the tune of at least Sh9.4 billion.

The bank said it will pay Sh7.75 billion ($76 million) while the ARC contributes Sh1.6 billion ($16 million) – making a total of Sh9.4 billion.

African countries have already contributed Sh3.2 billion (31.5) to the project but are expected to put more in future given the long-term nature of the project.

The money is intended for countries on the continent that are members of the ARC. Currently ARC has 33 members including Kenya, Rwanda and Burundi.

The ARC was established as a specialised agency of the AU to help member states improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters.

“The bank has stepped up and will support African countries to pay for insuring themselves against catastrophic weather events that displace their public expenditures,” said the AfDB in the statement.

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“It plans to provide $76 million (Sh7.75 billion) in 2018 for payment of insurance premiums, with participating countries providing $31.5 million (Sh3.2 billion) and the African Risk Capacity Agency (ARC) providing $16 million (Sh1.6 billion),” added the bank.

AfDB president Akinwumi Adesina asked the United Nations to invest in renewable energy in Africa through the Green Climate Fund.

“These three (environmental degradation, extreme poverty and youth unemployment] elements are present, there is a ‘Triangle of Disaster’, in which unemployment, poverty and environmental degradation chase each other in a downward spiral to dereliction, terrorism, violence and conflict,” Mr Adesina said.