African Risk Capacity (ARC)

African Risk Capacity (ARC) enables participating African governments to insure themselves against natural disasters and respond rapidly when their citizens experience harvest failure. It was established as a Specialized Agency of the African Union (AU) to help member states improve their capacities to better plan, prepare, and respond to extreme weather events, protecting the food security of their vulnerable populations in the process.

Purpose of support 
Creating enabling environments and building institutional capacity
Steps to access  

In order to participate in ARC, countries must undertake several processes, including customizing the Africa RiskView software, signing MOUs for in-country capacity building, defining a contingency plan for ARC payouts, and determining risk transfer parameters. When countries have satisfactorily completed this process, they will receive a Certificate of Good Standing from the ARC Agency Governing Board, and will pay a premium to ARC Ltd, after which they will be members of the risk pool.

Climate objective 
Sectors and themes 
Disaster risk reduction
Type of support provider 
Type of recipient 
Public entity at the national level
Fund size 

30 million per country per season for drought events that occur with a frequency of 1 in 5 years or less.

Co-financing required 
Trustee or administrator 
Specialized Agency of the African Union
Contact information
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