ARC Receives $27 Million from Dutch Government

ARC Receives $27 Million from Dutch Government
African Risk Capacity (ARC) has announced it has received a $27 million contribution from the Dutch Government to help boost climate resilience in Africa and further promote parametric insurance across the continent.

Per the announcement, the funding will be channelled through the African Development Bank’s Africa Disaster Risk Financing Programme (ADRiFi) Multi-Donor Trust Fund.

The Netherlands has now become the sixth country to contribute to the Fund. Parametric insurance is seen as key to fighting climate change; payouts are based on pre-agreed parameters, such as the intensity of a cyclone, specific drought conditions, or excess rainfall. This allows for rapid disbursement of funds, ensuring that impacted communities receive timely assistance to recover and rebuild.

The partnership was established in 2019 to help increase risk insurance coverage across the continent and further cement the capacity to respond to unexpected climate shocks. Since its establishment, the ADRiFi partnership has had a significant impact, helping to protect over 6,000,000 people financially.

The programme has received support from various international donors, including the United Kingdom, Switzerland, the United States, Canada, Norway, and now the Netherlands. The Bank has invested more than $100 million and supported 16 African countries in accessing sovereign insurance and financial protection against climate hazards.

Lesley Ndlovu, (pictured), CEO of ARC Ltd., commented: “We are grateful for the generosity of the Netherlands, and we welcome the country as a new donor to the ADRiFi programme to help reduce the protection gap and assist us in making parametric insurance more accessible and affordable through premium support.”

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