Action instead of reaction: KfW supports innovative drought insurance for emergency aid organisations in Africa

Frankfurt am Main (ots) -

- EUR 10 million for ARC Replica, the new approach by African Risk
Capacity drought insurance
- Insurance agreements concluded with the World Food Programme and
START Network
- More emergency aid measures and faster effective aid possible

On behalf of the German Federal Ministry for Economic Cooperation
and Development (BMZ), KfW has for the first time provided EUR 10
million to emergency aid organisations within the framework of a
two-year pilot phase for the innovative ARC Replica insurance
instrument. The United Nations World Food Programme (WFP) and the
non-governmental organisation START Network (START) have concluded
the first insurance agreements for Mali, Mauritania and Senegal. They
are benefiting from a new auxiliary insurance instrument from African
Risk Capacity (ARC) for damage caused by drought in Africa. It offers
countries early warning systems and emergency aid planning. As soon
as an African state has acquired an insurance policy at its own
expense through ARC, international emergency aid organisations can
increase the insured amount, which means that they can conclude a
policy in the same amount with their funds. As a result, more
emergency aid can be financed than was previously possible in the
event of a disaster, and aid can be provided more quickly and
effectively.

"The ARC Replica model could fundamentally change the system of
international emergency aid. The motto is 'action instead of
reaction'. By concluding an insurance policy with ARC, aid
organisations know that they quickly have the funds at their disposal
to help those affected right away should a disaster occur," said Dr
Joachim Nagel, Member of the Executive Board of KfW Group.

According to the ARC concept, to conclude an insurance policy,
countries are required to draw up detailed emergency aid plans. Two
satellites continuously measure how much rainfall occurs in specific
regions. Software calculates if and when a drought is expected within
the framework of the early warning systems. If there is insufficient
rain fall or if rain fall is inconsistent, the insurance is triggered
based on a threshold value defined in the policy.

If an international organisation obtains additional insurance
coverage for a country through ARC Replica, it coordinates its
emergency aid plans with the country's plans. This enables national
and international organisations to coordinate their measures with one
another, which leads to more effective aid for the people affected by
drought.

More information on KfW Development Bank is available at:
http://ots.de/13e5nY

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Charis Pöthig
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: charis.poethig@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell