The African Import-Export Bank (Afreximbank) has signed a memorandum of understanding with the African Risk Capacity (ARC) group, a specialized agency of the African Union (AU), with the aim of jointly strengthening resilience initiatives and financing of disaster risk in Africa. The ultimate goal is to provide adequate disaster and resilience responses using available banking and insurance products tailored to localized challenges.
Through the protocol, Afreximbank will provide a financing mechanism for food emergencies (FECONTRAF) to joint member countries participating in the African Risk Capacity sovereign / macro-disaster risk transfer program, national capacity building and development of food security policies, notes a press release from the institution published this Friday, November 19.
According to the United Nations Deputy Secretary General and Director General of the African Risk Management Capacities Group (ARC), Ibrahima Cheikh Diong, the partnership with Afreximbank will help reduce the negative impacts of natural disasters on lives and resources. subsistence of Africans.
At the end of 2020, Afreximbank’s total assets and collateral stood at US $ 21.5 billion and its shareholder funds amounted to US $ 3.4 billion. The Cairo-based institution disbursed more than $ 42 billion between 2016 and 2020.
Since 2014, 62 policies have been signed by ARC member states for cumulative insurance coverage of US $ 719 million for the protection of 72 million vulnerable populations in participating countries.
