Norway provides $4.5m to ARC’s SACPIP-Africa to strengthen climate resilience

Norway, through the Norwegian Agency for Development Cooperation, has provided NOK 50 million (approximately $4.5 million) to the African Risk Capacity Limited’s (ARC Ltd) Supporting Adaptation Capacity Through Increased Parametric Insurance Penetration in Africa (SACPIP-Africa) initiative.

The partnership was formalised during a signing ceremony at the CARICOM Pavilion at COP29 on November 13, 2024.

Climate change disproportionately impacts Africa’s economy and society. More than 95% of the continent’s food production depends on rainfed agriculture, which supports over 70% of the population, making them vulnerable to unpredictable weather. Disasters like droughts and floods worsen food insecurity, damage infrastructure, and reverse years of development.

Current humanitarian aid systems are often slow, reactive, and insufficient, with many African countries lacking the resources to respond effectively. This results in delays that heighten human suffering and economic loss.

In response, ARC Ltd’s SACPIP-Africa initiative aims to strengthen disaster risk preparedness by enhancing governments’ capacity to forecast, assess, and plan for crises. The program equips African nations with the tools, knowledge, and financial resources needed to address the growing impact of climate change.

By utilising parametric insurance, the initiative ensures fast payouts, enabling vulnerable countries to respond swiftly to emergencies.

Lesley Ndlovu, CEO of ARC Ltd, said, “The SACPIP-Africa initiative reflects a deep commitment to building a resilient and self-reliant Africa. By leveraging innovative tools like parametric insurance and developing local expertise, this program will protect livelihoods and ensure sustainable development in the face of climate challenges.”

SACPIP-Africa will be implemented over the next four years in Cameroon, Cape Verde, the Democratic Republic of Congo, Ghana, Kenya, Malawi, Mozambique, Rwanda, South Sudan, and Zambia.

Through capacity-building workshops for government officials, civil society organisations, and local leaders, SACPIP-Africa will embed disaster risk management knowledge at the grassroots level. These efforts will focus on building institutional frameworks, creating risk profiles, and developing contingency plans for effective response mechanisms, leading to $134 million in additional coverage and protecting 13.4 million vulnerable people over the next three years.

Anne Beathe Tvinnereim, the Norwegian Minister of International Development, commented, “Climate change is having a devastating impact on communities in Africa, as we have witnessed this year with the drought affecting several countries in Sub-Saharan Africa.

“We are excited to be partnering with ARC Ltd. Their work allows more countries in Africa and small-holder farmers to be insured against risks related to drought, flooding, or tropical cyclones.

“This project will also help countries assess the severity of risks and make sure that those most vulnerable in communities, including women and children, have their livelihoods protected.”

Looking ahead, ARC Ltd. aims to provide insurance coverage to more than 150 million vulnerable Africans annually by 2025.

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