The African Risk Capacity (ARC) Group, a provider of parametric disaster insurance products to countries and other entities in Africa, has made a combined parametric insurance payout of just over $5.4 million to support Mozambique’s response to the 2024/25 drought and to Tropical Cyclone Chido.
According to the announcement, the Government of Mozambique received just over $1.8 million for drought response, while Replica partner, the World Food Programme (WFP), which took out two insurance policies for drought and tropical cyclone on behalf of the country through the Replica programme, received $400,000 for drought and $3.1 million to support response to Cyclone Chido.
Due to its geographic location, Mozambique is prone to seasonal cyclone events. The south-east African country also grapples with cyclical drought events, which serves as a stark reminder of the growing climate crisis globally.
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