Malawi has received a drought insurance payout of $14.2 million from the African Development Bank through the Risk Capacity Limited to support drought affected households in the country.
President Lazarus McCarthy Chakwera, on receiving the payout, said it is his administration’s obligation to support those whose crops did not do well due to natural disasters that hit the country early this year.
“When I went around the country on a crop inspection tour and assured Malawians that the country had enough food for everyone and that even those few whose crops had not done well would be provided for. My confidence came from the fact that we had taken this insurance policy to support Malawians in this time of need.”
ARC Group board chairperson Mothae Anthony Maruping expressed optimism that the payout would provide relief to the vulnerable people.
“Such payouts enable countries to immediately provide the relief after disasters to ensure that people, particularly vulnerable groups do not suffer after disasters such as droughts, floods or any other forms of disaster caused by extreme weather,” he said.
Malawi is a signatory of the ARC Treaty established by African Risk Capacity, a specialised agency of the African Union, aimed at helping AU member States improve their capacities to plan, prepare and respond to extreme weather events.