The financial performance of the Pan African Mutual Risk Management Company (ARC Ltd), a subsidiary of the pan-African umbrella organization, has been bearish over the last 5 years with a sharp decline in net income from $ 22.4 million in 2014, at a negative amount of $ 6.2 million as at December 31, 2018.
The information is contained in a general folder provided to delegates participating since Sunday in the seventh edition of the Conference of the Parties to the ARC (CoP7) in Addis Ababa. According to the data, the participation of the Member States in the company and the turnover associated with the premiums have steadily decreased since then.
In addition, the group of countries insured against risks increased from a maximum of 7 countries in 2015 to 3 in 2018, despite the increase in the number of countries with Certificates of Conformity and Good Practice (CCBP). A situation that worries the officials of the ARC whose Treaty has so far been signed by only 33 countries of the African Union (AU).
The document also indicates that the company’s capital has been reduced by approximately $ 18 million between 2016 and 2018. The reasons are, among others, basic risk payments, write-offs and non-payment of premiums. in 2018.
It should be noted that the Pan African Risk Management Mutual (ARC) was established in 2012 by the AU to help Member States build their capacity to plan, prepare and respond more effectively to extreme climate events. to natural disasters.
By Nephthali Messanh Ledy, Special Envoy to Addis Ababa
