The African Risk Capacity, ARC, is a project of the African Union designed to improve current responses to drought food security emergencies and to build capacity within AU member states to manage drought risks.
As an African-owned, continental index-based weather risk insurance pool and early response mechanism, ARC offers an African solution to one of the continent's most pressing challenges. By bringing together the concepts of insurance and contingency planning, ARC aims to create a new way of managing weather risk by transferring the burden away from African governments, and their vulnerable populations who depend on government assistance, to international financial markets that can handle the risk much better.
This African-owned, AU-led financial entity will use advanced satellite weather surveillance and software developed by the UN World Food Programme (WFP) to estimate and disburse immediate funds to African countries hit by severe drought, with other hazards to follow in the coming years.
The Africa RiskView (ARV) software serves as the technical engine for ARC, and will estimate and trigger quick-disbursing funds to help African countries hit by severe drought implement effective and timely responses to assist those affected. ARV will allow decision makers to monitor and analyze drought-related food security risk before and during an agricultural season, as well as define ARC participation criteria in terms of the size and frequency of ARC payouts.
Website: http://www.africanriskcapacity.org/africa-risk-view