By Favour Nnabugwu
The African Risk Capacity, ARC, established by African Union (AU) to help member countries improve their risk capacities, said it has paid a total of $36 million (about N11 billion) to member countries affected by drought.
Speaking on the payment, Director-General, Mohamed Beavogui, explained that the ARC concept is based on the fundamental rationale that responding earlier to a disaster before it develops into a crisis is financially efficient and more economical.
He stated: “Till date, ARC has paid a total of US $36 million to member countries affected by drought which has directly helped 2.1 million people and over 1 million livestock.
“Our early intervention helps to save lives and livelihoods with every dollar invested with ARC, saving nearly four and a half dollars spent after a crisis evolves.
“As the international organization leading dialogues for public-private cooperation, the World Economic Forum (WEF) is uniquely positioned to enable ARC join other key global stakeholders in useful and mutually benefiting dialogue on climate and natural disaster risk financing and management.
“The ARC model works by linking early warning systems with contingency planning and supported by modern financial mechanisms (specifically insurance). This enables governments to provide targeted responses to disasters in a more timely, cost-effective, objective and transparent manner.”
Also speaking, Community Lead and Business Engagement Manager for Africa, WEF, Mr. Bertrand Assamoi said: “We are pleased to welcome ARC as a new member of World Economic Forum.
“The innovative approach of ARC in helping African countries build capacities to better understand and manage natural disaster risks is critical in developing the necessary tools and financing to bridge humanitarian needs within a broader development and resilience framework.”