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African Risk Capacity

Organization's Acronym:
Web Address:
Email Address:
Published by:
Focus Region:
Middle East & North Africa
Sub-Saharan Africa
Focus Country:
South Africa

The African Risk Capacity (ARC) is a Specialized Agency of the African Union established to help African governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters. Through collaboration and innovative finance, ARC enables countries to strengthen their disaster risk management systems and access rapid and predictable financing when disaster strikes to protect the food security and livelihoods of their vulnerable populations.

ARC is comprised of ARC Agency, a Specialized Agency of the African Union, and the ARC Insurance Company Limited (ARC Ltd), a financial affiliate that delivers risk transfer services. Together, they offer a comprehensive and continental solution to enable early and targeted responses to natural disasters in Africa through capacity building and innovative financing mechanisms [link].

As currently structured, the international system for responding to natural disasters is not as timely or equitable as it could be. Funding is secured on a largely ad hoc basis after disaster strikes, and only then can relief be mobilized toward the people who need it most. In the meantime, lives are lost, assets are depleted, and development gains suffer major setbacks – forcing more people into chronic destitution and food insecurity in the world’s least developed countries.