(Ecofin Agency) - African Risk Capacity Group (ARC), a pan-African mutual risk management organization, announced during a conference in Dakar, Senegal, on September 9, 2020, that it plans to launch a new product to help its member countries fight floods. “This product is already in a pilot phase in Côte d'Ivoire, Ghana, Gambia, and Togo and will be available to all member states,” the institution said in a statement. The solution is expected to be operational next year.
Also, ARC is working with the African Center for Disease Control and Prevention (Africa CDC) on covid-19 modeling tools for Africa to enable its member states to better manage this pandemic and help the populations that need it most.
The recent floods reported in Nigeria, Abidjan (Côte d'Ivoire), Douala (Cameroon), and Dakar (Senegal) are a reminder of how important it is to take this type of risk into account in the future. When they do occur, they very often leave the affected people without an appropriate response. Global insurance deals very often do not specify what to do in the event of flood-related damage.
The agricultural sector needs a particular focus on flood-related damage management. According to estimates, the sector sustains about 70% of people in Sub-Saharan Africa. Heavy rains, floods, and drought periods represent major risks for these poor people who cannot afford conventional insurance services.
In Nigeria, for example, it is reported that floods will reduce rice production by about 25%, exposing the country to more imports.