Amid COVID-19 crises, Germany donates to protect African countries with climate insurance

As the COVID-19 pandemic continues to spread into countries already dealing with the impacts of drought, economic crises and conflict, the German Ministry for Economic Cooperation and Development (BMZ) has provided USD 5.9 million to ensure that the UN World Food Programme (WFP) can continue to protect 1.2 million vulnerable African farmers with climate risk insurance.

“This donation comes at a crucial time. The COVID-19 pandemic keeps colliding with the climate crisis. While the immediate priority of many countries is to protect people and prevent the spread of COVID-19, it is essential to have safety nets in place that protect vulnerable people from the double threat of COVID and climate impacts. Heatwaves, floods, storms and droughts are compounding the economic and public health effects of the pandemic, putting an additional burden on overstretched health services,” says Gernot Laganda, WFP Chief of Climate and Disaster Risk Reduction Programmes.

Germany’s donation will enable these countries to strengthen their safety nets and manage two hazards at the same time.

With funding from BMZ’s emergency COVID-19 response, WFP will be able to purchase policies for Burkina Faso, The Gambia, Mali, Mauritania and Zimbabwe for the 2020/21 agricultural season.

If these countries experience climate shocks that damage crops this year or the next, the impacts of the COVID-19 pandemic will be compounded and less food will be available in the markets, which could lead to food crises. This will create a situation where countries are faced with having to feed more people while at the same time trying to control the spread of COVID-19.

“This is why this insurance could support ‘double resilience’ for vulnerable people. It is protecting them from both hunger and the impacts of COVID-19 on market access,” said WFP Mauritania Country Director Nacer Benalleg.

This German donation will fund insurance coverage for around 108,000 people in Mauritania; 175,000 people in Burkina Faso; 45,000 people in the Gambia; 745,000 people in Mali and 266,000 people in Zimbabwe.

The insurance scheme is part of the African Union’s African Risk Capacity (ARC) – innovative risk management and resilience-building institution that helps African Union Member States manage climate and disaster risk and adapt to climate change. ARC Member States purchase index-based drought insurance that guarantees payouts if rains fall below certain levels. Financial help can reach affected small-scale farmers immediately after the failed harvest. ARC is also offering governments comprehensive technical support for disaster preparedness and disaster risk management.

Original source: WFP
Published on 16 June 2020