By Rudo Saungweme
Minister of Information, Publicity and Broadcasting Services, Honourable Monica Mutsvangwa said Cabinet approved the signing of the Insurance Policy Agreement between Africa Risk Capacity Limited (ARC Ltd) and the Government of Zimbabwe.
Minister Mutsvangwa said this yesterday during the 43rd cabinet meeting at Parliament of Zimbabwe.
“Following the presentation by the Minister of Finance and Economic Development, Cabinet approved the signing of the Insurance Policy Agreement between ARC Ltd and the Government of Zimbabwe, as well as the Memorandum of Understanding (MoU) between the Government of Zimbabwe and the World Food Programme,” she said.
The Minister said that the ARC Ltd seeks to provide participating Member States of the African Union (AU) with access to financial resources to help them to respond to Extreme Weather Events.
Minister Mutsvangwa informed the Cabinet that Government through Treasury would purchase a drought insurance premium of US $1 003 571, which will unlock a maximum coverage of US $5 345 668.
She also said that the World Food Programme (WFP) will pay a premium amount of US $200 000 which will unlock a maximum coverage of US $1 065 329 for this coming 2019/20 season.
This move by Government will help in mitigating the drought induced hunger which is a major threat to sustainable livelihoods.
