HARARE, Zimbabwe, January 11, 2022 – / The African Information Agency (AMA) / – A global network of humanitarian agencies today announced the purchase of an innovative insurance policy in partnership with African Risk Capacity (ARC) and the Government of Zimbabwe. The policy aims to protect more than 800,000 people in Zimbabwe from drought risks during the 2021/2022 agricultural season.
The $2.5 million insurance policy purchased by the Start Network and offered by African Risk Capacity is built on the basis of standard insurance. This means that it pays before the crisis, according to pre-agreed scientific triggers, based on, for example, rainfall data. Unlike the standard humanitarian model, where relief agencies receive funding only after a crisis has struck, this approach enables governments and their partners to plan and respond before the worst effects of drought are felt, thus saving more lives and livelihoods.


The Start Network members involved in this initiative in Zimbabwe and potential implementing partners (in the event of a payout) are; Action Aid Zimbabwe, Action Contre La Faim/Action Against Hunger, CAFOD, Catholic Relief Services, GOAL, Plan International, Tearfund, Trocaire and World Vision Zimbabwe (WVZ). Local NGOs are involved in planning and will also lead the response to further strengthen locally led humanitarian action. These include the Zimbabwe Project Trust (ZIMPRO), The Evangelical Fellowship of Zimbabwe (EFZ), Family AIDS Advisory Fund (FACT) Zimbabwe, Nutrition Action Zimbabwe (NAZ), Simukai Children Protection and Caritas Bulawayo / Gokwe / Hwange / Masvingo / Mutare .




All planning will be done in conjunction with the government of Zimbabwe and the United Nations World Food Programme, who have also signed a policy with the African Risk Management Organization. If policies are prompted, the Government of Zimbabwe, members of the Start Network, other development partners and NGOs will provide complementary support programs to ensure that the greatest number of people most at risk are supported.
The Honorable Minister of Finance and Economic Development Professor Mtholi Ncube welcomed the support provided by the Start Network. He highlighted how the Government of Zimbabwe continues to promote the shift from a reactive response to a proactive approach to managing disaster risks such as drought. Hon Im Ncube said, Standard insurance provides timely financial relief before natural disasters strike. After receiving complementary support from UN-WFP as a replica partner in clusters VI and VII, the partnership with the Start Network will make Zimbabwe the first ARC member country to have two partners in the current cluster VIII replica. This demonstrates the confidence of our partners in Zimbabwe’s disaster risk management approach with the ARC Group.”
Speaking on behalf of the African Risk Resilience Group, Ibrahima Cheikh Diong, Director-General/Assistant Secretary-General of the United Nations, praised the strong consensus among partners that made the initiative possible. He said, “The human impact of natural disasters can only be meaningfully mitigated through smart partnerships that harness the resources of multiple actors for comprehensive solutions. We applaud the strong leadership of the Government of Zimbabwe in demonstrating continued confidence in the ARC mechanism. Standard insurance, such as that provided by ARC Limited, remains , one of the best risk transfer tools because it ensures rapid mobilization of relief efforts when a disaster strikes. We are very optimistic that the rest of the continent will adopt a culture of preparedness and early action as we march in solidarity towards an Africa resilient to climate change.”
Start Network Disaster Risk Financing Coordinator in Zimbabwe / Startup Fund Regional Advisor – Eastern and Southern Africa, Nelly Mundy, commenting on the initiative said, “It is time to direct more support towards proactive models and not just reactive humanitarian action. We have seen great success after two years of running a similar program in Senegal and expect the same success for Zimbabwe. We have seen for a long time the consequences of waiting for the threat to turn into a crisis first before we act – This only leads to suffering. Through proactive disaster risk management, more lives can be saved, more livelihood assets can be protected, and vulnerable groups can be spared from resorting to negative coping strategies that undermine their future potential and resilience.”
Asan Gulua, National Director of World Vision Zimbabwe (WVZ), said, “We are delighted to host the network coordination in Zimbabwe. As WVZ, we have responded through the Start Network several times including the typhoid response under WASH in Bulawayo, the urban cash response in Norton and particularly during Cyclone Idai, one of the most unprecedented disasters in Zimbabwe. Received Several other Start Network members in Zimbabwe have funded Start Network funds for various other emergency responses and proactive actions, contributing to saving lives and reducing suffering for Zimbabweans. We look forward to continued collaboration between Network members and other disaster risk financing initiatives in Zimbabwe.”




A similar policy was procured in Senegal for the 2019/2020 growth season and the payment of US$10.6 million meant that over 300,000 people were supported. The signing of the new policy in Zimbabwe is part of the Start Network’s goal to revolutionize the aid sector by stimulating new ways of preparing for crises and thus helping to create more resilient communities.
This initiative is funded by the Kreditanstalt für Wiederaufbau (KfW) Development Bank on behalf of the German Ministry of Economic Cooperation (BMZ) and the UK Foreign and Commonwealth Office and Development (FCDO).
Start Network consists of around 55 members worldwide with 20 workers in Zimbabwe.
distributed by African media agency On behalf of StartNetwork.
Notes to editors
For more information, contact:
Helen James, Head of Communications and Digital, Start Network +44 (0) 7887853071 Helen.James@startnetwork.org | Skype: helenjames.com
Available for interview:
Nelly Mundy, DRFC Coordinator/Regional Adviser to Startup Fund – Eastern and Southern Africa | nelly.maonde@startnetwork.org | Skype: cw_nelly.maonde | +263 772881526
Ibrahima Sheikh Diong, UN African Risk Capacity and UN Secretary-General / GDG | chinadu.moghalu@wfp.org +27833087068
Network start: www.startnetwork.org | startnetwork
Start Network is a global network of NGOs, consisting of more than 55 national and international aid agencies from five continents. Its mission is to create a new era of humanitarian action that will save more lives through innovation, rapid funding, early action and localization. Start Network believes that preventive climate risk financing can revolutionize the aid sector and spur a new way of preparing for crises, helping to create more resilient communities. Visit our website to see a full list of members.
African Risk Capacity: www.africanriskcapacity.org
The African Risk Management Capacity (ARC) group consists of ARC Agency and ARC Insurance Company Limited (ARC Ltd). ARC was established in 2012 as a specialized agency of the African Union to help member states improve their capacities to better plan, prepare for and respond to weather-related disasters. ARC Limited is a mutual insurance facility providing risk transfer services to member countries through risk pooling and access to reinsurance markets. ARC was founded on the principle that investing in preparedness and early warning through an innovative financing approach is extremely cost-effective and can save up to four dollars for every dollar invested up front.
With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the European Union, the Rockefeller Foundation and the United States, ARC assists Member States of the African Union in reducing the risk of loss and damage from severe weather events affecting the population of Africa by providing, through sovereign risk insurance, against Disasters, purposeful responses to natural disasters in a timely, cost-effective, objective and transparent manner. ARC is now using its expertise to help tackle some of the other most important threats facing the continent, including floods and epidemics.
Since 2014, 62 insurance policies have been signed by Member States to cover a cumulative insurance amount of $720 million to protect 72 million vulnerable populations in participating countries.
For more information, please visit: www.africanriskcapacity.org/ Please follow us on social media:
Twitter: @ARCapacity
LinkedIn: https://www.linkedin.com/company/african-risk-capacity/
The subsequent insurance policy purchased to protect up to 800,000 people in Zimbabwe from drought risks first appeared on the African Information Agency.
Adsgeni code is : 748912