Ghana satisfies requirements to buy insurance with Africa Risk Capacity

Ghana has satisfied all the three requirements needed to be eligible to buy insurance with Africa Risk Capacity. 

The Risk Capacity is a contingency fund to hedge against disasters. 

The requirements are, Customising the Africa Risk View Software, Developing contingency Plans, and Determining Risk Transfer Parameters. 

A Senior Economic Officer at the Ministry of Finance, Foster Aboagye Gyamfi, who disclosed this to Radio Ghana, said a Memorandum of Understanding has already been signed with a Technical Working Group in place. 

He mentioned NADMO, Environmental Protection Agency, EPA, Meteorological Agency, Ministry of Agriculture and Water Resources Commission among others as institutions forming the group. 

To kick start the policy, donor partners including UK, Canada and Germany have provided a seed money of $50 million. 

Mr. Gyamfi said a contingency fund, will decide whether to give cash or relief in terms of food distribution to farmers who will be affected by a disaster when the need arises to farmers. 

He pointed out that with the support of GIZ, some communities in the Northern parts of the country where Ghana is concentrating for now have been sensitized about the policy. 

Currently eight African countries including Senegal, Mauritius, Malawi and Ethiopia have signed on to the insurance policy out of which four have benefited.

Story by Joyce Gyekye

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