• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Thursday, July 3, 2025
  • Login
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Business Unlimited

Climate Resiliency & Food Security Combine With ARC & Afreximbank

Staff Reporter by Staff Reporter
November 24, 2021
in Business Unlimited
0 0
0
ARC’ Agric Cover To Deflate Climate Risks In Africa
0
SHARES
55
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

For the developing world and countries highly exposed to climate related risks, resiliency and food security need to go hand-in-hand to enable better responses to climate disasters and the African Risk Capacity (ARC) has partnered with the Afreximbank to provide both together.

Of course, the African Risk Capacity (ARC) already provides parametric drought insurance, alongside some other parametric natural perils covers, to African countries.

The ARC parametric products come with resiliency in mind and governments sign up to an agreement and plan to prepare for climate disasters and heighten resiliency against them when buying the parametric risk transfer.

Now, thanks to an MoU signed with the African Export-Import Bank (AFREXIMBANK), a trade finance bank for Africa, food security is also being thrown into the mix, with the use of a contingent financing product.

The MoU is designed to enable African member states to enhance their disaster response and resiliency initiatives, utilising available banking and insurance products suited for localised challenges, the pair explained.

What this actually means to begin with, is that the Food Emergency Contingent Financing Facility (FECONTRAF) will be provided to countries that are signed up to African Risk Capacity’s sovereign or macro disaster risk transfer programmes, its national capacity building and food security policy development.

The contingent financing facility for food security fits neatly with a parametric drought insurance product.

The Food Emergency Contingent Trade Financing Facility (FECONTRAF) enables physical food (grain) reserves to be substituted with a standby facility, meaning a climate vulnerable African country could finance the commercial imports of grains, or their staple food of choice, if they have a food emergency, such as driven by a drought.

The contingent financing can guarantee the availability of an import financing facility in the event of a crisis, which can be a time when trade finance markets become more challenging to access.

One of the key aims of the FECONTRAF facility is to help alleviate weather-induced food shortages and hunger, boosting the resilience of African countries to drought.

By bringing together parametric insurance risk transfer with contingent financing, it can greatly increase the ability of a government to help its people in times of climate crisis, delivering liquidity to help in disaster response, as well as greater certainty in terms of food supply.

Prof. Benedict Oramah, President of Afreximbank, commented on the MoU signing,“This new partnership with the African Risk Capacity Group will ensure we support member countries to be disaster aware, prepared and solutions oriented. In collaboration with the ARC, we aim to improve their capacities to better plan and respond to natural and man-made disasters that may hamper trade facilitation across the continent and make available the needed support to combat disasters when they strike.”

United Nations Assistant Secretary General (ASG) and Group Director General of the African Risk Capacity (ARC) Group, Mr Ibrahima Cheikh Diong, added, “The alignment of purpose between our two institutions for a food-secure and climate-resilient Africa is fundamental to this partnership. Through providing holisitic solutions we will lessen the negative impacts of natural disasters on lives and livelihoods. Therefore, our collaboration will help strengthen countries’ response systems by promoting the availability, accessibility, and affordability of critical resources for anticipatory climate action.”

One of the benefits of parametric triggers is the responsiveness of the financing and liquidity they deliver.

With this food security contingent facility, it’s not clear whether climate or disaster could be a trigger for activating it, but it does seem possible to align the insurance and contingent trade financing, to ensure the two financial solutions work best together, to the benefit of the African nations that sign up for them.

We’ve covered catastrophe contingent financing solutions, such as the World Bank’s contingent debt products (CAT-DDO’s) for many years now. They provide a valuable source of access to finance when the worst happens, but they could also be more integrated with proactive sources of liquidity like parametric disaster insurance as well.

Here, ARC has a chance to bring together parametrics with contingent food security financing, which would be a very interesting development for its product range and something that could be meaningful when it comes to helping African countries build resilience against, respond to and recover from disaster.

Source: www.Artemis.bm By Steve Evans
Previous Post

Sovereign Trust Rises Above Post Covid Gaps With Double 17% Growth In Profit & GPW

Next Post

How Are US Insurers Faring Amid Economic Instability? – Report

Staff Reporter

Staff Reporter

Related Posts

Leadway Advocates Safety First as Nigerians Embrace The New Year
Business Unlimited

Leadway Group Reinforces Creative Minds Community With Sponsorship Second-Year +234Art Fair

February 25, 2025
FIRS ICAN Members Dominate Profession, ICAN President Inaugurates Chapter, Commends Adedeji’ Leadership
Business Unlimited

No Hiding Place For Binance, FIRS Sues Cryptocurrency Company For $79.51b Over Alleged Economic Losses

February 19, 2025
FIRS ICAN Members Dominate Profession, ICAN President Inaugurates Chapter, Commends Adedeji’ Leadership
Business Unlimited

FIRS ICAN Members Dominate Profession, ICAN President Inaugurates Chapter, Commends Adedeji’ Leadership

February 5, 2025
Next Post
How Are US Insurers Faring Amid Economic Instability?   – Report

How Are US Insurers Faring Amid Economic Instability? - Report

Please login to join discussion
NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

April 27, 2024
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
NCRIB And Universal In Pictures

NCRIB And Universal In Pictures

May 4, 2024
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
ncrib logo

NCRIB Sets The Stage For Adaramola’s Tenure

June 7, 2023
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
Preferred PenCom Logo

PenCom Board Back-To-Work Pass, Gets Tick Over

May 4, 2025
Anchor MD Loses Father

Anchor MD Loses Father

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Inaugurates Discount Rate Committee To Ease Insurance Contracts Under IFRS 17

2
Insurance Mastercard Joe Irukwu Passes On

Insurance Mastercard Joe Irukwu Passes On

2
AIICO Head office

Car Insurance Takes A New Turn With AIICO, ETAP ‘Redefine Partnership’

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

2
Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

2
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

Federal Government & NAICOM Working On New Guidelines For Insuring Government Assets

2
Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

July 2, 2025
Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

July 1, 2025
Image Spin: Insurance Professionals Spill Insurance Potentials to Secondary Schools And Undergraduates

Image Spin: Insurance Professionals Spill Insurance Potentials to Secondary Schools And Undergraduates

July 2, 2025
Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

Nigeria’s Future Gets Insurers Paramount Appeal, Flaunt Bourgeoning Effectiveness And Reliability

June 30, 2025
Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

July 1, 2025
Insurers Improve Performance by 56%, Rake in N1.56tr in 2024, Commitment to Claimants Hit N622bn

Insurers Improve Performance by 56%, Rake in N1.56tr in 2024, Commitment to Claimants Hit N622bn

June 30, 2025
Prof. Bart Nnaji to Chair 2025 Oriental News Nigeria Summit

Prof. Bart Nnaji to Chair 2025 Oriental News Nigeria Summit

June 26, 2025
Investment: Insurance Ace Leads, Downgrades Volatility Where Other Financial Systems Grapple, Holds Over $40tr Assets

Investment: Insurance Ace Leads, Downgrades Volatility Where Other Financial Systems Grapple, Holds Over $40tr Assets

June 25, 2025
The Gambia Central Bank Studies NAICOM Regulation For Insurance Regulatory Upgrade

The Gambia Central Bank Studies NAICOM Regulation For Insurance Regulatory Upgrade

June 23, 2025
SanlamAllianz Flags Off 12-City Roadshow to Deepen Customer Engagement And Awareness

SanlamAllianz Flags Off 12-City Roadshow to Deepen Customer Engagement And Awareness

June 23, 2025
ADVERTISEMENT

Recent News

Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

July 2, 2025
Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

July 1, 2025
Image Spin: Insurance Professionals Spill Insurance Potentials to Secondary Schools And Undergraduates

Image Spin: Insurance Professionals Spill Insurance Potentials to Secondary Schools And Undergraduates

July 2, 2025
Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

Nigeria’s Future Gets Insurers Paramount Appeal, Flaunt Bourgeoning Effectiveness And Reliability

June 30, 2025
Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

Image Spin: Insurance Market Takes The Veil Off, Projects All Risks Commitment, Necessity For Today And Future

July 1, 2025
Insurers Improve Performance by 56%, Rake in N1.56tr in 2024, Commitment to Claimants Hit N622bn

Insurers Improve Performance by 56%, Rake in N1.56tr in 2024, Commitment to Claimants Hit N622bn

June 30, 2025
Prof. Bart Nnaji to Chair 2025 Oriental News Nigeria Summit

Prof. Bart Nnaji to Chair 2025 Oriental News Nigeria Summit

June 26, 2025
Investment: Insurance Ace Leads, Downgrades Volatility Where Other Financial Systems Grapple, Holds Over $40tr Assets

Investment: Insurance Ace Leads, Downgrades Volatility Where Other Financial Systems Grapple, Holds Over $40tr Assets

June 25, 2025
The Gambia Central Bank Studies NAICOM Regulation For Insurance Regulatory Upgrade

The Gambia Central Bank Studies NAICOM Regulation For Insurance Regulatory Upgrade

June 23, 2025
SanlamAllianz Flags Off 12-City Roadshow to Deepen Customer Engagement And Awareness

SanlamAllianz Flags Off 12-City Roadshow to Deepen Customer Engagement And Awareness

June 23, 2025
Tech Innovator, Per Lagerström Takes Centre Stage as Headline Speaker For IMT 4.0

Tech Innovator, Per Lagerström Takes Centre Stage as Headline Speaker For IMT 4.0

June 23, 2025
Preferred PenCom Logo

Pension System Undulating Highs And Lows Creates Open Challenges

June 23, 2025
Generative AI Sweeping Reliance Destructive Without Human Oversight – NGX Chairman

Generative AI Sweeping Reliance Destructive Without Human Oversight – NGX Chairman

June 28, 2025
Public Servants Welfare Capacity Enhanced With Workshop on Group Life Assurance Policy

Public Servants Welfare Capacity Enhanced With Workshop on Group Life Assurance Policy

June 19, 2025
NEM Insurance NEM Insurance NEM Insurance
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel
  • Uncategorized

Recent News

Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

Merger: NAICOM Hands Over New Licenses to SanlamAllianz Life and General Insurance

July 2, 2025
Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

Leadway Health HMO Establishes a Trend With Third Straight HMO of the Year Award

July 1, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In