According to African Risk Capacity’s statement, Malawi, Zambia, Zimbabwe, and Mozambique are projected to receive insurance payouts at the end of the harvesting season due to the El Niño-driven drought.
The weather pattern has significantly impacted the region’s corn harvests, leading to increased food insecurity.
According to reports, El Niño has caused significant d@mage to corn harvests across Southern Africa, leading to a severe decline in Zimbabwe’s corn production this year compared to 2023. As a result, Malawi, Zambia, and Zimbabwe have declared a national state of dis@ster.
While insurance payouts are expected for the affected countries, the payments may not be sufficient to address the region’s needs. Last year, disbursements to Malawi, Zambia, and Zimbabwe totaled $20.9 million, but this year’s payments have not yet been disclosed.
The agency known as ARC uses a parametric insurance model, which triggers drought compensation payments according to the impact of timing, amount and distribution of rainfall. ARC also provides cover for cycl0nes and river fl00ds.
SOURCE : NEW ZIMBABWE
