Afreximbank Signs MoU With African Risk Capacity Group To Alleviate Disaster Risk Financing

The African Export-Import Bank (Afreximbank) and African Risk Capacity (ARC) Group, have signed a Memorandum of Understanding (MoU) to jointly enhance resilience and disaster risk financing initiatives that also impacts the trade and supply chain across the continent.

A statement on Friday from Afreximbank said that the purpose of the MoU is to enable joint member states to enhance disaster response and resiliency initiatives using available banking and insurance products suited for localized challenges.

It said the MoU’s primary intervention is to provide a food Emergency Contingent Financing Facility (FECONTRAF) to joint member countries that participate in African Risk Capacity’s sovereign/macro disaster risk transfer program, national capacity building, and food security policy development.

The President of Afreximbank Benedict Oramah stated, “This new partnership with the African Risk Capacity Group will ensure we support member countries to be disaster aware, prepared and solution-oriented.

“In collaboration with the ARC, we aim to improve capacity to better plan and respond to natural and man-made disasters when they strike.

Ibrahim Cheikh Diong, United Nations Assistant Secretary-General (ASG) and Group Director General of the African Risk Capacity (ARC) said the alignment of purpose between the two institutions for a food-secure and climate-resilient Africa is fundamental to this partnership.

He said, “Through providing holistic solutions we will lessen the negative impacts of natural disasters on lives and livelihoods. Therefore, our collaborations will help strengthen countries’ response systems by promoting the availability, accessibility, and affordability of critical resources for anticipatory climate action.”