African Risk Capacity Provides $32M Payout to Zimbabwe

Zimbabwe received a $32 million payout from the African Risk Capacity (ARC) Group due to a triggered parametric drought cover, with $16.8 million going to the country directly and funds also allocated to organizations like the United Nations World Food Programme (WFP) and Start Network. The payout aims to support over 500,000 vulnerable households in 27 districts affected by severe drought, assisting in climate change resilience efforts. The ARC mechanism, designed to aid African states in responding to extreme weather events, has been crucial for Zimbabwe facing food insecurity due to El Niño-induced conditions, impacting millions of people. The government, along with partner organizations, is implementing food distribution programs to address immediate needs and enhance community resilience, emphasizing the importance of such disaster risk financing solutions provided by ARC in strengthening disaster management systems and ensuring food security for vulnerable populations.