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€18 million climate insurance available for African countries

By BUUMBA CHIMBULU

GERMANY  has announced a €18 million premium support to subsidise climate insurance for African Risk Capacity (ARC) Member States.

This was announced on the margins of the ongoing United Nations 2021 United Nations Climate Change Conference (COP26) this week.

The grant is a clear testimony of the value of smart partnerships for smart disaster risk management and financing for early action, according to Ibrahima Cheikh Diong, United Nations Assistant Secretary-General and Director-General of the ARC Group

“We are extremely delighted about the consistent support of the German Government to disaster risk reduction and mitigation in our Member States.

“Through this assistance, we are optimistic that other partners will embrace our pitch for a Continental Premium Support Facility to help institutionalise sovereign parametric insurance culture in the region,” he said.

Given that climate change is threatening to bring more frequent and extreme weather events, the Premium Support Facility will be crucial for the most vulnerable African countries.

Following the Covid-19 pandemic, many African governments have severely constrained budgets and humanitarian agencies are struggling to meet unprecedented levels of need.

This new funding will subsidise insurance premiums, decreasing in future years as countries and organisations are able to take over the costs using their national budgets and long-term sustainable financing.

Germany’s support will catalyse effective risk management and help protect the poorest and most vulnerable people across the continent.

Christian Krämer, Member of the Management Committee at KfW Development Bank said Germany had been a long-standing supporter of the ARC.

“Earlier this year, in Germany we were affected by devastating floods – we have experienced ourselves the importance of preparedness and the vital role that insurance can play in recovery.

“We are therefore delighted to be able to extend support to African nations who have been so badly affected by the covid-19 pandemic, so that they can take steps to prepare well to face the rising challenges of climate change,” Kramer said.

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