AU to establish financial entity to manage climate risk

22 November 2012, Sweetcrude/African Press Organization (APO), ADDIS ABABA, Ethiopia  — Mandated by African Union (AU) Heads of State in July 2012, delegates from 41 countries across the continent will convene on Friday at DIRCO’s O.R. Tambo building to sign the African Risk Capacity (ARC) Establishment Agreement.

The ARC is a groundbreaking extreme weather insurance scheme designed to help African Union member states resist and recover from the ravages of natural disasters. This African-owned, AU-led financial entity will use advanced satellite weather surveillance and software – developed by the UN World Food Programme (WFP) – to estimate and disburseimmediate funds to African countries hit by severe weather events. More relevant than ever in light of the lingering effects of the drought in the Horn of Africa last year and the ongoing crisis in the Sahel, this pioneering new mechanism will decrease Africa’s reliance on external aid.

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