AFRICAN Risk Capacity(ARC) Limited intends to invest US$100 million towards agriculture insurance in Zimbabwe, as it broadens its African footprint and interventions to improve the strategically key sector’s resilience in the face of climate change.
ARC is a specialised agency of the African Union (AU) established to help African Governments to enhance their capacities to better plan, prepare and respond to the extreme weather events and natural disasters.
The agency predominantly works with governments, humanitarian agencies and small to medium farmers across the continent, but intends to broaden its services in the country through collaborations with local insurance companies.
Operating across 35 countries on the continent, ARC is one of the largest agriculture reinsurance players in Africa.
Zimbabwe has been a beneficiary of ARC’s initiatives but at the government level, which received US$2 4 million to cover claims from the 2019 drought.
The organisation made notable insurance claim disbursements were recently made towards Madagascar which was paid US$10, 7 million after falling victim to a severe tropical cyclone.
In June ARC paid US$14,2 million claims to Malawi and US$5,3 million to Zambia after two countries experienced drought this year.
According to ARC chief executive Leslie Ndlovu, the agency is motivated to enter the Zimbabwean private sector market given the importance of agriculture to the country, which is the mainstay of the local economy, hence the great potential to be receptive to services.
Announcing the plans on Wednesday, Mr Ndlovu said ACR intended to work with the entire insurance industry, including brokers, but mainly reinsurers, with the overall goal of enhancing the affordability of agriculture insurance products to the generality of the local population.
He said his organisation intended to reinforce the message that Africa needed to be prepared for natural disasters while at the same time availing financing mechanisms that minimise the negative impact of extreme weather conditions when they occur.
“We are in Zimbabwe to meet with our partners to map out ways of cooperation, at the moment we have US$100 million that we put at the service of the market, with our value proposition we then come to the local market, work with local partners with the express intention of increasing the number of farmers that have access to insurance.
-State Media