Malawi received a $11.2 million insurance payout on August 2, 2024, from the African Risk Capacity (ARC) Group and the African Development Bank. This financial support aims to assist the country in recovering from a severe drought brought on by the 2024 El Niño, which has caused widespread food shortages and hardship. The payout is part of Malawi’s drought insurance policy and was made possible through the African Development Bank’s Africa Disaster Risk Financing (ADRiFi) Programme Multi-Donor Trust Fund.
The funds will be used to provide essential food assistance to approximately 235,000 households in Malawi’s Lower Shire and Southern regions, areas most affected by the drought. Additionally, the payout will support cash transfers to 118,000 households in the Central region, offering critical aid to the country’s most vulnerable populations. President Lazarus McCarthy Chakwera, who received the cheque, highlighted the significance of this support, describing it as a vital lifeline for those suffering from the drought’s impacts.
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The 2024 El Niño has been one of the strongest on record, severely impacting Southern Africa and exacerbating food shortages in Malawi. In response to the crisis, the Malawian government declared a state of disaster in March 2024 and launched a National El Niño Response Appeal in April to gather resources for immediate humanitarian interventions and to bolster food production in affected areas.
The ARC Group and the African Development Bank have emphasized the importance of preparedness and strategic planning in responding to climate-related disasters. Ibrahima Cheikh Diong, ARC Group Director General, acknowledged the role of the ARC mechanism in enabling timely interventions, while Dr. Yero Baldeh of the African Development Bank stressed the link between climate change, food security, and fragility in vulnerable regions.
By September 2024, the ARC Group is expected to disburse a total of $62 million in disaster risk insurance payouts to El Niño-affected countries in Southern Africa, including Malawi, Mozambique, Zambia, and Zimbabwe. This insurance payout to Malawi underscores the critical need for regional collaboration and foresight in addressing the growing impacts of climate change on the continent.