The African Risk Capacity (ARC), an agency of the African Union, and the United Nations Economic Commission for Africa (ECA) on Tuesday announced a new partnership which will ensure an increase insurance coverage against climate risks for African states.
The deal, which was announced at the 30th African Union Summit in Addis Ababa, commits ARC and ECA to build the capacity of their 33 common Member States by sharing expertise and financial resources. The two groups will also work together in areas of economic and climate risk research in order to promote risk transfer instruments, the UN Economic Commission for Africa said.
The UN estimates that Africa will see the adaptation costs of climate change rise to $50 billion per year by 2050.
“This partnership marks a bold new phase of heightened collaboration on combating the effects of climate change in Africa,” said Mohamed Beavogui, Director-General of ARC Agency.
“The future of disaster risk management is an increasingly urgent economic issue, and ECA’s unique expertise will complement ARC’s work serving its member states and building preparedness and resilience on the continent,” he added.
ARC has paid more than $34 million in the four years that it has offered insurance coverage to its member states affected by drought.
Over 2 million people have benefited from the resources.ECA Executive Secretary, Vera Songwe said that climate change is a major threat to Africa’s economic and social development hence efforts like those of the two partners will help move the needle.