Ghana’s premium to Continental Insurance paid for by facility

A crop insurance premium worth $1 million has been paid to a Continental Insurance entity, African Risk Capacity (ARC), to safeguard farmers whose crops were affected by a dry spell this year.

The insurance premium was funded by Global Shield Solution Platform (GSSP), an international non-profit organisation that aims to increase protection for vulnerable people.

The ARC was set up in 2012 at the request of the African Union Heads of State due to the increasing frequency and severity of natural disasters. It works with African countries to plan, prepare and respond to natural disasters.

The Director for Climate Change Adaptation and Disaster Risk Reduction at the National Disaster Management Organisation (NADMO), Charlotte Norman, disclosed this at a side event organised by the GSSP at COP29 in Baku, Azerbaijan.

She said the GSSP would be supporting in paying the crop insurance premium for the next three years after which the government would be expected to continue.

Ms Norman explained that working with other relevant stakeholders, a database had been established to facilitate the registration and payout process as indicated in the contingency plan.

The payment by GSSP would provide a financial buffer, where funds would be made available after a drought to help stabilise the economy and reduce the need for emergency budget allocations.

Emergency

It would allow for more predictable and planned responses to droughts rather than relying on uncertain financial aid or emergency funding.

Ghana recorded a shortage in cereals this season due to dry spells in northern parts of Ghana which led to the loss of livelihood of farmers. 

The dry spell has resulted in significant losses for farmers, with an estimated investment loss of GH¢3.5 billion and a revenue loss of GH¢10.4 billion, the Ministry of Food and Agriculture has estimated. 

Claims

The Chief Executive Officer of ARC Limited, Lesley Ndlovu, said since its inception in 2012, more than $230 million in claims had been paid to countries.

He stated that beneficiary countries, including Zimbabwe, Zambia, Mozambique and Malawi had been paid claims close to $70 million as a result of disaster.

The Head of Global Shared Solutions Platform, Annette Detken, said 17 more countries were in line to receive funding to address their climate risk.

She called on donors to contribute to the kitty to support countries in distress, adding that the platform had €200 million from six donors, Germany, Denmark, Ireland, France, European Union and Luxemburg. – GNA