Africa Risk Capacity (South Africa) is a pioneering organisation established by the African Union to strengthen disaster resilience across the continent. Over the past decade, it has played a pivotal role in enabling African governments and communities to mitigate the impacts of natural catastrophes through innovative insurance mechanisms, contingency planning, and strategic partnerships. Its approach combines advanced risk transfer solutions with capacity building, creating a robust framework for managing disaster risks and promoting long-term sustainability.

Africa Risk Capacity (ARC) was created to address a pressing gap in the disaster risk financing landscape, offering African countries a pathway to transfer their catastrophe risks efficiently. The organisation operates as a risk pool structure, wherein participating countries join annually to collectively manage disaster-related financial challenges. This model ensures financial stability and preparedness, making it a critical lifeline for nations vulnerable to climate-induced and natural disasters.

ARC’s initial focus was on providing sovereign-level insurance for food security and post-disaster recovery. However, its scope has expanded significantly over the years…