Droughts have long decimated communities and livelihoods in Africa. This year alone, more than 45 million people in Africa, mainly in eastern and southern Africa, are food insecure due to prolonged droughts.
Mohamed Beavogui, Under-Secretary-General of the United Nations and Director-General of the Pan-African Mutual Risk Management Institution, and Ibrahim Thiam, Deputy Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification, brandishing copies of the Memorandum of Understanding.
The Pan African Mutual Risk Management Organization (ARC) and the United Nations Convention to Combat Desertification (UNCCD) announced their collaboration to support the development of financial tools for Africa to adapt and withstand future droughts and other extreme weather events.
The partnership will help African countries manage the impact of extreme weather events, including drought. It will also seek to mobilize private sector resources through the development of new financial instruments that can provide insurance protection and other financing to mitigate these risks.
This announcement was marked by the signing of a Memorandum of Understanding by UNCCD Executive Secretary Ibrahim Thiam and ARC Director General Mohamed Beavogui during a two-day technical workshop October 22nd and 23rd in Bonn, Germany.
The workshop examines the proposed principles and work of the Extreme Climate Control Facility (XCF), a new financial vehicle to tap capital market resources to provide financial support to countries affected by weather events. extremes.
The technical experts gathered during the workshop explore the robustness of the central elements of the XCF device. These include financial products and their underlying index, viable alternative solutions based on the market and the partnerships needed to achieve the product and objectives.
The process for the XCF began in March 2014 when the AU Conference of Ministers of Finance asked the CRA, under decision no. 927 (XLVII), at the seventh annual joint AU-ECA meeting held in Abuja, Nigeria, to establish a financial mechanism to strengthen the response of Member States to the effects of weather.
The first Special Report on Climate Change and Land published just three months ago by the authoritative Intergovernmental Panel on Climate Change (IPCC) warns that droughts could increase in frequency and intensity in much of Africa.
“The message is clear. We will see an increasing number of droughts of unprecedented severity, exacerbated by climate change. No country or region, rich or poor, is safe from the vagaries of drought. The ARC-led XCF will become an important tool to help African countries cope effectively with the impacts of drought, “said Ibrahim Thiaw during the ceremony.
“Currently, under the Drought Initiative, the United Nations Convention to Combat Desertification is helping 35 of the 57 African countries to create the mechanisms they need to take swift action to prevent disasters caused by disasters. Drought. Today, Africa is intensifying its preventive actions as a unified front against future drought and climate-induced disasters in the region, “said Thiaw.
“Reducing the effects of drought and other natural disasters by helping Member States improve their resilience to climate change through innovative risk mitigation and financing instruments is at the heart of our mandate,” said Secretary-General of the United Nations, Mr. Beavogui.
“The agreement signed today with the UNCCD will create a functional synergy in our efforts to help countries better understand their risk profiles, improve their knowledge and build their capacity for climate change adaptation and food security, “concluded Beavogui.
The XCF, as it is currently designed, has a three-point program: access private sector financing, encourage best public policy practice, and integrate climate science into its functions.
Additional statements about the XCF
Mohamed Beavogui, Under-Secretary-General of the United Nations and Director General of the ARC Agency, said, “Since the launch of the XCF program in 2014, this is the first Technical Review Forum in which the global framework is reviewed and reviewed in its entirety. Our guiding principle since the creation of the ARC is to challenge our concepts by subjecting our models to the best experts in the field. We did it with our drought management tool, the Africa RiskView software, which remains the best of its kind so far for Africa. We are grateful to all our partners and industry experts who have joined us in this process. ”
“The World Bank is helping countries to adapt to climate change and is committed to working with them to build financial resilience to climate shocks and disasters,” said Miguel Navarro-Martin, Product Manager. Bank at the Treasury Department of the World Bank. “Our goal is to help countries protect their fiscal accounts against external risks. The concept of the XCF system developed by the ARC offers African countries the opportunity to access financial solutions to manage disaster risk and finance a portfolio of climate resilient investments, “he added.
Dr. Astrid Zwick, Head of the InsuResilience Program Secretariat, congratulated the ARC and UNCCD on this initiative: “Our collaboration with countries is focused on ensuring a faster and more reliable response to disasters. . Preparation and availability through the use of climate risk insurance and financing solutions are key elements. XCF promises to be an instrument that can complement ongoing efforts in countries to prevent, minimize and manage climate disaster risks by strengthening resilience and resilience at the local level. We are happy to be part of this process. ”
Declarations concerning the Memorandum of Understanding
UN Deputy Secretary-General and Director General of the ARC, Mohamed Beavogui, remarked that “The mandate of the Convention to Combat Desertification echoes the mission of the ARC. Reducing the effects of drought and other natural disasters by helping Member States improve their resilience to climate change through innovative risk mitigation and financing instruments is at the heart of our mandate. The agreement will create functional synergy in our efforts to help countries better understand their risk profiles, improve their knowledge and build their capacity for climate change adaptation and food security. ”
Executive Secretary Ibrahim Thiaw said, “Today marks the beginning of a unified front against drought and climate-related disasters in the African region. We are currently managing programs closely related to climate change adaptation and natural disaster risk, including the Drought Initiative. Our main objectives are to support the establishment and implementation of national drought plans and to mobilize innovative financial instruments to better mitigate the risks of extreme climate situations. ”
About the Pan-African Risk Management Mutual:
The ARC Agency is leading the ARC Group, a development finance institution that provides financial tools and infrastructure to help countries manage disaster risk and adapt to climate change. The Institution currently has 34 member states of the African Union (AU) and is overseen by a Ministerial Board of Directors elected by the Conference of the Parties. The Pan African Risk Management Mutual is a locally produced, innovative and cost-effective model that demonstrates that it is able to assist Member States in building their capacity to better plan, prepare for, and cope with extreme weather events and disasters. natural resources, thus ensuring the food security of their populations. Since 2014, Member States have signed 32 insurance contracts worth US $ 73 million in premiums for cumulative insurance coverage of US $ 553 million for the protection of 55 million vulnerable people in participating countries.
About the UNCCD:
The United Nations Convention to Combat Desertification (UNCCD) is an international agreement on sound land management. It helps people, communities and countries to create wealth, grow economies and secure enough food, water and energy by ensuring land users an environment conducive to sustainable forest management. land. Through partnerships, the 197 Parties to the Convention have put in place robust systems for early and effective drought management. Good land management based on sound science and science helps to integrate and accelerate the achievement of sustainable development goals, strengthen resilience to climate change and prevent biodiversity loss.
