ARC Ltd. appoints David Maslo as Chief Executive Officer

Abidjan, Côte d’Ivoire | 14 July 2026 – African Risk Capacity Limited (ARC Ltd.) has appointed David Maslo as its Chief Executive Officer. ARC Ltd. is Africa’s first development-focused parametric insurer. It provides risk insurance and financing solutions for natural disasters to African governments, eligible non-sovereign entities and development partners. Mr Maslo brings more than two decades of senior leadership experience across Africa and the global insurance sectors. He also has extensive experience in climate and disaster risk financing in Africa and the Caribbean, including a strong track record in institutional transformation, strategic growth and risk-financing innovation. Most recently, as Interim Chief Executive Officer of ARC Ltd, he led the organisation through a period of significant transformation and delivered its strongest annual financial performance since inception. Under his leadership, premium earnings reached a record high in 2025. The organisation expanded its multi-peril offering with the roll-out of sovereign flood insurance, launched its Re-Takaful facility, accelerated the organisation’s relocation to Abidjan, Côte d’Ivoire,and continued to strengthen ARC’s position as Africa’s leading provider of innovative disaster risk financing solutions. Announcing the appointment, Cecilia Akintomide, Chairperson of the Board of Directors of ARC Ltd., said:  “ARC’s ambition is clear: to help close Africa’s protection gap, reach more countries and communities, and make resilience a shared reality on the continent. Under David’s leadership, I am confident that ARC Ltd. will continue to scale innovative risk-financing solutions. It will also strengthen the continent’s resilience to climate-related, health and other catastrophic risks, and support Africa’s wider sustainable development agenda.”  Commenting on his appointment, David Maslo, Chief Executive Officer of ARC Ltd, said: “It is an honour to lead African Risk Capacity Ltd at this important moment in Africa’s economic development. ARC has a vital role in helping African governments and their partners anticipate, finance and respond to disasters before they become humanitarian crises. “I look forward to working closely with the African Union, our development and other partners, shareholders and the ARC team to deliver ARC’s mandate in support of African countries. At the same time, we will advance our transformation strategy, expand innovative risk-financing solutions and strengthen resilience across Africa.” “Our focus will be on building a stronger, more agile and more impactful ARC Ltd. We will deepen trust, expand access to protection, mobilise new partnerships and help ensure that African countries are better prepared for the risks of tomorrow.” Mr Maslo’s appointment comes at a defining time. African countries face increasing exposure to climate-related shocks, agriculture and food security challenges, public health emergencies such as Ebola, and other catastrophic risks.  Under his leadership, ARC Ltd. will seek to accelerate its transformation, deepen its role as a trusted development partner and support governments and eligible entities with innovative insurance and risk-financing solutions that protect lives, livelihoods and economic progress.

RAPID FLOOD RESPONSE FUNDING

Malawi and Mozambique secure over USD22.3 million within seven days Abidjan, 30 January 2026 – The Regional Emergency Preparedness and Access to Inclusive Recovery (REPAIR) Program has disbursed over USD22.3 million within seven (7) business days to support urgent national flood response operations in Malawi and Mozambique, enabling governments to mobilise immediate relief. By providing rapid, pre-arranged financing, REPAIR enables governments to mobilise life-saving assistance immediately after a shock, without waiting for lengthy damage assessments or delayed emergency resource mobilisation. The funds will be used to purchase life-saving supplies, including food and medical kits, water storage and sanitation equipment, and emergency shelter and household items. Eastern and Southern Africa (ESA) remains one of the world’s most climate-vulnerable regions. In Malawi and Mozambique, the previous two months have been marked by continuous heavy rainfall triggering significant flooding that has claimed at least 115 lives, displaced tens of thousands of people and damaged critical infrastructure across both countries. In Mozambique, the situation was compounded by strong winds, wildfires and a cholera outbreak. As participating countries in REPAIR, Malawi and Mozambique subsequently triggered activation requests of USD2.375 million and USD20 million, respectively, to complement their national relief and early recovery operations. The Program released the funds within seven (7) business days of both activation requests. Speed is absolutely critical following a natural disaster, which is why REPAIR is committed to disbursing funds rapidly and effectively to its participating countries following shocks. “In times of crisis, rapid support can make the difference between a shock and a humanitarian emergency,” said David Maslo, CEO of African Risk Capacity (ARC) Ltd., REPAIR’s implementing agency. “Through REPAIR, ARC Ltd is supporting Malawi and Madagascar in these difficult circumstances by ensuring that critical funding reaches the government quickly, as demonstrated by this disbursement delivered within seven business days of the activation request, so that relief can be mobilised before conditions deteriorate.” According to official figures from the Malawian government, the floods in Nkhotakota District and surrounding areas in late December 2025 directly affected over 49,000 people (approximately 10,900 households), claiming 12 victims and displacing 2,132 families who had to be relocated to temporary camps hosted in schools, churches and a health centre. The country’s response to the floods is being coordinated by the Department of Disaster Management Affairs (DoDMA), with support from the National Local Government Finance Committee (NLGFC), one of REPAIR’s pre-identified delivery channels. This delivery arrangement supports rapid mobilisation of resources and efficient distribution to affected populations, even in the immediate aftermath of a shock. In Mozambique, flooding in the provinces of Maputo, Gaza and Sofala has partially or totally destroyed over 15,000 homes, directly impacting over 231,000 people. The death toll has already reached 112. In addition, 2,145 cases of cholera have been declared in Zambezia and Nampula provinces. National relief operations are being led by the National Institute of Disaster Risk Management (INGD), which is working with the National Directorate of Water Supply and Sanitation and Ministry of Health, to deliver food, safe water and sanitation, and medicines to affected populations. These efforts are being hampered by damage to the national highway, the N1, preventing the movement of people and goods up and down the country. The rapidity of the fund activations highlights the value of pre-arranged financing instruments designed to ensure that response efforts are not delayed by the mobilisation of emergency resources. By allowing governments to access funds quickly, REPAIR strengthens operational readiness and helps ensure that relief reaches communities when it can make the greatest difference. REPAIR is a World Bank program, implemented by ARC Ltd., with financial support from the Global Shield Financing Facility (GSFF). These are the Program’s third and fourth disbursements since its creation in July 2024. REPAIR had previously supported relief and recovery efforts in Comoros and Mozambique, following the passage of cyclones Chido and Jude, respectively. These activations have allowed participating countries to benefit from each other’s experiences in accessing and delivering funds, while ongoing Simulation Exercises continue to reinforce multi-hazard preparedness and response systems and procedures. “REPAIR is committed to strengthening not only the financial preparedness of its participating countries, but also their operational readiness. The current activations in Malawi and Mozambique have benefited from the lessons learned last year and from crisis simulation exercises to ensure that Ministries of Finance could promptly activate the program and move the funds swiftly to benefit the affected communities. The peer-to-peer learning between countries is a fundamental feature to create a regional disaster risk finance ecosystem, thereby enhancing the climate resilience of a region which is very susceptible to natural shocks,” explained Caroline Cerruti, World Bank Lead Financial Sector Specialist and REPAIR Regional Lead. “We thank our participating countries for their active engagement in REPAIR and pledge to stand by their side in times of crisis.” Malawi recently joined REPAIR as part of the programme’s Phase 2, alongside Angola, Burundi, Seychelles and Zambia, while Phase 1 is comprised of Comoros, Madagascar and Mozambique. A central component of REPAIR’s approach is the establishment of a Regional Climate Risk Fund, with an envelope of up to USD926 million, designed to increase climate resilience among participating countries by supporting timely and scalable responses to natural shocks based on their severity.   Version française Versão portuguesa

Driving Climate Resilience Through Innovation: Regional Risk Pools Advance Global Action Ahead of COP30

As COP30 convenes under the banner of accelerating climate finance and adaptation, the Resilience Risk Pools alliance — comprising the African Risk Capacity Limited (ARC Ltd.), CCRIF SPC (the Catastrophe Risk Insurance Facility of the Caribbean and Central America), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) — reiterates our shared commitment to championing innovative, people- and impact-focused disaster finance. The escalating cost of climate-related disasters highlights the urgency of pre-arranged, predictable finance for governments. Disaster risk finance is not only about faster recovery — it’s about empowering countries to plan ahead, protect public assets, and safeguard development gains. The Resilience Risk Pools acknowledge the call at COP30 for concrete pathways to scale adaptation finance, and our collective experience demonstrates how financial preparedness and innovative insurance solutions can help operationalize global resilience goals.Innovation in Action Faith-Based Finance for Climate Protection in Africa In 2025, ARC Ltd. broke new ground by launching the ARC Re-Takaful WAQF Facility, a Shariah-compliant climate protection mechanism on the continent. Designed as a non-profit facility, it provides faith-aligned, community-based insurance solutions for millions of Africans vulnerable to droughts, floods, and other climate disasters. Across Africa, more than 700 million people remain unprotected from the devastating effects of climate shocks, and among them an estimated 300 million belong to the Islamic community, many of whom lack access to coverage that complies with their faith. Through ARC Re-Takaful, these communities can now access rapid, transparent, and solidarity-driven payouts, ensuring that recovery support reaches those who previously had no coverage. The Facility also strengthens local resilience by empowering domestic Takaful operators, reinvesting surpluses into grants and community programmes, and bridging the gap between Islamic finance and disaster-risk protection. Recognised with the Resilient Re-Takaful Finance Innovator Award 2025, this initiative embodies ARC Ltd.’s commitment to inclusive innovation, ensuring that Africa’s resilience leaves no one behind. CCRIF’s Regional Risk Pooling Model as a Catalyst for Global Action Ahead of COP30 As climate risks intensify, CCRIF is demonstrating how regional risk pools can deliver rapid, equitable, and scalable disaster financing. Grounded in parametric insurance and pre-arranged liquidity, CCRIF has become a cornerstone for loss and damage in the Caribbean and Central America. CCRIF now serves 35 members and has 7 parametric insurance products. Recent innovations include a fluvial flood model for inland flooding and the Livelihood Protection Policy, a microinsurance product for vulnerable groups. CCRIF disbursed US$91.9M to Jamaica after Hurricane Melissa in November 2025, US$84.5M to seven members after Hurricane Beryl in 2024. To date, CCRIF has made 82 payouts totaling US$483M all within 14 days of the events, reinforcing its role as a reliable, trusted and responsive financial mechanism. CCRIF continues to scale coverage, develop new sector-specific products, and is investing in climate justice, including a detection and attribution grant to The UWI. As a Global Shield-aligned mechanism, CCRIF offers a replicable model for resilience financing. The message is clear: regional innovation can drive global action, and parametric power is central to the future of climate resilience. Renewal of Innovative Climate and Disaster Risk Insurance by PCRIC and WTW to Help Close the Protection Gap in the Pacific In November 2024, the Pacific Catastrophe Risk Insurance Company (PCRIC), in collaboration with WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company, announced the renewal of its portfolio of policies for governments and government-affiliated entities in Pacific Island countries and territories, together with the associated reinsurance placement. PCRIC developed the new policy designs with support from WTW’s Disaster Risk Finance (DRF) and Alternative Risk Transfer (ART) teams, with the successful renewal of its reinsurance portfolio aiming to enhance access to improved disaster risk insurance coverage for the Pacific region. PCRIC provides insurance for tropical cyclones, heavy rain, earthquake, and tsunami risk to 8 Pacific governments: the Cook Islands, Fiji, Niue, Tonga, Samoa, Vanuatu, Federated States of Micronesia and Solomon Islands. For 2024/25, the Papua New Guinea state-owned telecommunications company PNG DataCo and the Vatuvara Foundation in Fiji, were also policyholders. With climate change intensifying natural hazards in the region, PCRIC’s insurance tools provide critical pre-planned protection for people, governments, economic and natural assets and essential infrastructure services. New Models for People-Centric Climate Insurance by SEADRIF In 2025, SEADRIF launched a groundbreaking multi-peril parametric insurance policy for Lao PDR — the first of its kind to use nationally reported disaster impact data as the trigger for payouts. This innovation reduces basis risk, enhances transparency, and ensures that insurance responds directly to community needs on the ground. Its effectiveness was demonstrated in September 2025, when SEADRIF made a USD 2 million payout to Lao PDR following multiple medium-sized disasters — disbursed just six days after the national disaster management office’s final impact report. SEADRIF continues to collaborate with ASEAN nations to strengthen climate resilience, with upcoming initiatives including the SEADRIF Sovereign Asset and Fiscal Empowerment (SEADRIF-SAFE) Facility, spearheaded alongside the Philippines Department of Finance. As the climate crisis intensifies, the Resilience Risk Pools alliance is forging the next generation of disaster finance solutions to protect lives, livelihoods, and economies. From climate insurance products for the agricultural sector, enabling earlier response and improved food security, to new parametric models that capture localized disaster risks and expand coverage, the four risk pools are working closely with member countries to strengthen financial resilience. Building on our advocacy at COP28 and COP29 — including engagement through the Global Shield Solutions Platform (GSSP) Forum — the four regional risk pools continue to amplify the potential for disaster risk financing solutions to address climate vulnerability. Our collaboration extends beyond these global platforms through ongoing communication, shared learning, and coordinated outreach. Together, we remain focused on closing the protection gap and ensuring that member countries have the financial tools to act swiftly, recover strongly and build a more resilient future. We invite stakeholders to follow our current and upcoming initiatives across the four regions and partner with us to push forward financial preparedness against disaster risk. BACKGROUND Resilience Risk Pools

ARC LTD. UNVEILS INCLUSIVE CLIMATE PROTECTION INITIATIVE AND WINS GLOBAL AWARD FOR INNOVATION

Johannesburg, 29 October 2025 – Millions of Africans vulnerable to droughts, floods, and other climate-related disasters will soon have access to new, Shariah-compliant protection solutions thanks to a bold new initiative launched by the African Risk Capacity Limited (ARC Ltd.). The organisation has unveiled a non-profit facility designed to help communities and insurers in Member States access financial protection aligned with Islamic principles. The announcement was made during the 7th Global Takaful and Re-Takaful Forum 2025, held in Dubai, where ARC Ltd. received the prestigious “Resilient Re-Takaful Finance Innovator Award” for its pioneering role in inclusive climate financing. Expanding Climate Protection to Underserved Communities More than 700 million people remain unprotected from the devastating effects of climate shocks across Africa, and an estimated 300 million belong to the Islamic community, many of whom lack access to insurance that complies with their faith. This new initiative aims to close that gap by offering Shariah-compliant, community-based protection, enabling vulnerable households and governments to recover more quickly after disasters. The initiative, known as the ARC Re-Takaful WAQF Facility (ARC ReTak), forms part of ARC Ltd.’s broader mission to ensure that no one is left behind in building resilience against climate change. Through its Waqf (charitable trust) structure, it allows governments, Takaful operators, and communities to share climate risks faith-based frameworks and access rapid payouts after droughts, floods, and other climate-related shocks. Empowering Local Insurers and Strengthening Community Resilience Beyond extending coverage to new audiences, ARC ReTak will also strengthen existing risk-protection systems on the continent. The Facility will empower local insurers by providing them with additional capacity to protect pastoralists, smallholder farmers, and other vulnerable populations. Surpluses generated by the Facility will be reinvested into grants and resilience programmes, helping households rebuild stronger after climate events. By fostering collaboration between African and global Islamic finance institutions, ARC ReTak will serve as a bridge between traditional insurance systems and faith-based finance: a model that reflects ARC Ltd.’s growing commitment to inclusion, innovation, and community resilience. Tailoring New Solutions to Islamic Principles of Mutual Support ARC Ltd. is developing dedicated solutions that align with Islamic principles, offering protection mechanisms that resonate with the values of solidarity and shared responsibility. In Takaful, participants contribute to a common fund that supports members in times of need, while Re-Takaful extends this cooperative model, allowing Takaful operators to share larger risks and increase their protection capacity. Unlike conventional insurance, which relies on profit-based underwriting, Takaful and Re-Takaful are rooted in mutual assistance, fairness, and transparency: principles that closely align with ARC Ltd.’s developmental mandate. By integrating these faith-based frameworks, ARC Ltd. is broadening access to its suite of risk-transfer products, ensuring that communities across faiths can benefit from its protection solutions. Advancing ARC Ltd.’s Mission for a More Resilient Africa The launch of ARC ReTak strengthens ARC Ltd.’s role as a developmental insurer of the African Union’s African Risk Capacity Group (ARC), helping Member States and communities anticipate, plan for, and respond to climate disasters. It builds on ARC’s existing sovereign and replica insurance mechanisms by adding a faith-based dimension, reinforcing progress toward Sustainable Development Goals (SDGs) 1 and 13 and the African Union’s Agenda 2063. “Africa’s resilience must be inclusive,” said David Maslo, Chief Executive Officer of ARC Ltd. “With this new facility, we are expanding the protection net to include millions who have so far remained outside conventional systems, not by choice, but by lack of access. This initiative embodies solidarity and innovation, ensuring that every African, regardless of faith or background, can recover and rebuild after climate disasters.” The Facility is currently in its structuring and capitalization phase, and its announcement signalsARC Ltd.’s firm commitment to innovation, inclusion, and faith-based finance in advancing Africa’s climate resilience. By bridging faith-based finance and disaster-risk protection, ARC Ltd. is taking another decisive step toward safeguarding the continent’s most vulnerable.

ARC makes a combined parametric insurance payout of $5.4 million to support Mozambique’s response to the 2024/25 drought and to Tropical Cyclone Chido

Maputo, Mozambique – 14 October 2025 – Today, the African Risk Capacity (ARC) Group presented an insurance payout of just over $5.4 million to the Government of the Republic of Mozambique and Replica partner, the World Food Programme (WFP) in response to recent climate disasters. The Government of Mozambique received just over $1.8 million for drought response, while WFP, which took out 2 insurance policies for drought and tropical cyclone on behalf of the country through the Replica programme, received $400,000 for drought and $3.1 million to support response to Tropical Cyclone Chido. These funds will enable critical life-saving interventions in the form of large-scale food distribution for affected communities. This disbursement underscores the role of parametric insurance in building resilience and facilitating swift, pre-planned action in the wake of increasing and intensifying climate-related shocks. Due to its geographic location, Mozambique is highly prone to seasonal cyclone events which continue to a source of great devastation. It also grapples with cyclical drought events – a stark reminder of the growing climate crisis globally. These events compound food insecurity and destroy key infrastructure, displacing many.  Speaking at the event, Albertina Fruquia Fumane, Permanent Secretary in the Minister of Finance, expressed the Government’s appreciation to be receiving this payout, citing how much it will support recovery efforts. “The insurance is an important defence line to protect the lives of the most vulnerable by reducing fiscal and social vulnerability. The Government has been investing in strengthening its capacity to respond and building resilience, and in the development of guiding instruments,” she said. This payout emphasises the critical importance of instruments like sovereign insurance. It is made by ARC Limited, the insurance affiliate of the ARC Group responsible for risk pooling and transfer, availing predictable finance to facilitate early response to these two disaster events. The funds will help the government and its partners to reach the most vulnerable populations, preventing them from resorting to negative coping mechanisms.  “This payout demonstrates the value of ARC’s parametric products, which deliver fast and predictable finance when needed most. As a Class A Member of ARC, Mozambique not only benefits from insurance that keeps coverage affordable but also has the assurance that an AU-mandated institution will continue to support it against climate shocks”, stated David Maslo, ARC Ltd Interim CEO. “This is what sets ARC apart: an African-led solution that works, combining innovation, solidarity, and resilience for our Member States”, he concluded.  Mozambique’s participation in ARC risk pools was made possible by an insurance premium paid in part by the government, with premium support contribution from the Africa Disaster Risk Financing Programme ADF Fund (ADRiFi-ADF). ADRiFi is a framework developed as a collaboration between the African Development Bank and the ARC Group.  In his opening speech, Andrew Mude, AfDB’s Lead SME Agribusiness Development, underscored the value of preparedness. “ADRiFi has proved that prearranged finance works. We’ve seen it strengthen national systems and transform our countries to prepare for shocks. With Mozambique’s leadership, and that of many others who are here today and have been pioneering in this space, we have come to see that when we finance in advance, we can reduce the impact of this crisis.” Replica partner, World Food Programme (WFP) also took out two policies (for drought and tropical cyclones) on behalf of the country. The Replica programme is an initiative that allows humanitarian actors to purchase insurance on behalf of a country, thus increasing the reach and impact of the ARC programme.   Speaking on the value of payouts in times of disasters, WFP Country Director, Claire Conan acknowledged the value and commitment of all partners in building resilience across Africa, particularly Mozambique. “This partnership with ARC and ADRiFi partners has already yielded concrete results. Following Tropical Cyclone Chido, Mozambique’s cyclone insurance policy was activated, releasing US$3.1 million for WFP to respond quickly in Nampula and Cabo Delgado. This payment enabled rapid support to affected communities, complementing government actions and reducing the need for emergency appeals.” Representing the donor partners of the ADRiFi, Her Excellency, Elizabeth Ackerman, of Portugal, highlighted the value of this framework in supporting countries. “Mozambique unfortunately experiences disaster almost every year, however, ADRiFi shows smart financial instruments such as insurance can help strengthen disaster preparedness and response. Quick payouts help save lives, aid recovery, limit losses and support rebuilding,” she said. The Arab bank for Economic Development (BADEA), also funded Mozambique’s capacity building programme which provides training in risk modelling, contingency planning and risk transfer, critical to understanding parametric insurance to technical experts. This laid the foundations for Mozambique’s participation in ARC risk pools, facilitating informed decision making on insurance uptake.  The ARC value proposition offers four critical elements of climate response: early warning, contingency planning, risk pooling and risk transfer. The facility has proven to be an effective tool to improve a government’s preparedness to manage disaster events. “The impacts of persistent weather-induced disaster events on lives and livelihoods have been devastating on many levels. ARC stands with the Government of Mozambique during these difficult times”, said Jean Chrysostome Ngabitsinze, ARC Group Director General and Assistant Secretary General. “We are honoured to partner with the country as it continues to strengthen its preparedness to respond to such catastrophes’, he concluded.  In handing over the cheques, Dr Antony Maruping, Chairman of the ARC Group Board, “I take this moment to salute the Government of Mozambique and its Technical Working Group, our donor partners, and our technical partners. This effort aligns with Agenda 2063 and SDG’s in that as we build resilience, we are helping achieve the goals of these two important frameworks.” As climate vulnerabilities deepen across Africa, ARC continues to work with Member States to develop innovative risk management solutions that promote resilience, save lives, and safeguard economic stability.

Lesotho Receives US$2.8 Million Payout from ARC to Support Drought-Affected Communities

Maseru, Lesotho – 22 August 2025 – The African Risk Capacity (ARC) Group today issued a US$2,767,958 insurance payout to the Government of the Kingdom of Lesotho, following the activation of its sovereign drought insurance policy for the 2024/25 agricultural season. This payout, made possible by the Government’s subscription to ARC’s innovative sovereign risk financing mechanism, will fund the country’s Final Implementation Plan (FIP), which will be in the form of emergency food aid and cash transfers to households affected by the drought. The Kingdom of Lesotho, which held the Chairmanship of the ARC Conference of the Parties from April 2024 to April 2025, has been a strong advocate for climate resilience and disaster risk financing in Africa. The two ARC drought insurance policies (crop and rangeland) taken out for the season were funded through the Africa Disaster Risk Financing (ADRiFi) programme, an African Development Bank/ARC initiative, and premium support from the German Development Bank KfW. The payout will support drought-affected vulnerable households in all 10 districts of Lesotho. Each household is anticipated to receive a sum of (Maluti 1500) equivalent of $81  as determined by the LVAC (cost of minimum essential basket). An estimated 30,709 farming and vulnerable households will be reached by this assistance (a household is composed of an average of 4 members). While 90% of the total payout will benefit vulnerable farming families directly affected by crop failure, 10% will support the scale-up of the social cash transfer for ultra-poor labour-constrained households. Dr Jean-Chrysostome Ngabitsinze, ARC Group Director General, emphasised the importance of Lesotho’s proactive approach and leadership to managing climate risks, noting: “Lesotho’s leadership in investing in disaster risk financing sets a powerful example for Africa. This foresight ensures timely resources to protect lives and livelihoods. ARC is proud to stand with Lesotho in translating policy into real impact for vulnerable communities.”   Reflecting on ARC’s operational impact, David Maslo, Interim CEO of ARC Ltd, added: “This first-ever payout in Lesotho is about giving people the means to recover with dignity and continue building their futures. We commend the Government’s commitment to protecting its citizens through pre-arranged financing tools, together with the support of our partners, and encourage scaling up such coverage. This forward-looking approach shows how countries can withstand climate shocks without derailing their development efforts.”   The payout ceremony in Maseru brought together senior government officials, ARC representatives, development partners, and other stakeholders, underscoring the role of sovereign risk financing as a practical tool for resilience. Honourable Minister in the Prime Minister’s Office, Hon Limpho Justice Tau, welcomed the support, noting, “Lesotho signed the Memorandum of Understanding with ARC in October 2020, and further ratified the treaty in July 2024. These has given the country amazing fruits as now we are benefiting from this payout equivalent to 49,100,357 million Maloti to be geared towards assisting vulnerable small Farmers who were affected by drought in the cropping season 2024/25.”   Highlighting the importance of timely financial support in disaster response, Hon. Dr Retselisitsoe Adelaide Matlanyane, Minister of Finance and Development Planning, said: “For Ministries of Finance across Africa, ARC is particularly important. It gives us a predictable and reliable instrument to manage disaster risks while protecting national budgets and safeguarding the livelihoods of our citizens.”   The Government of Kingdom of Lesotho, the ARC Group, and development partners such as the African Development Bank have all reaffirmed their commitment to strengthening climate risk management strategies and promoting innovative solutions to protect vulnerable populations from future climate shocks.

Press release

Lilongwe, Malawi – 25 July 2025: Today, the Government of the Republic of Malawi has received an insurance payout from the African Risk Capacity (ARC) Group to the sum of USD $3,376,783, following a drought that affected the 2024/2025 agricultural season. This marks another significant step in the country’s proactive efforts to manage climate-related risks and protect vulnerable communities.  In preparation for the 2024/25 planting season, the country secured a traditional sovereign insurance policy as well as an anticipatory insurance policy with ARC Ltd, the insurance arm of the ARC Group, to protect itself against drought. The policies resulted in payouts of USD $3,065,746 and USD $311,037 respectively. The use of anticipatory solutions is an innovative way of insurance that allows for early response to a failed planting season. In line with the Final Implementation Plan developed as part of the ARC contingency planning process which guides the use of ARC payouts, the Government of Malawi will use the traditional sovereign policy payout to scale up social protection measures through food distribution and cash transfers just over 311 000 beneficiaries (69 179 households). The anticipatory insurance payout will support livelihood-enhancing options by providing drought-tolerant crops for replanting and inputs for winter cropping for 3255 households.  The Government of Malawi’s participation in ARC climate risk insurance was facilitated by an insurance premium paid through support from the African Development Bank (AfDB)’s Africa Disaster Risk Financing Programme Multi-Donor Trust Fund (ADRiFi-MDTF) for the Traditional Sovereign Drought Policy, and KFW on behalf of the German Government for the Anticipatory Insurance Policy.  The Government of Malawi wishes to express its sincere appreciation to the African Development Bank (AfDB) and KfW for their invaluable support and partnership in advancing climate resilience and disaster risk financing efforts in the country.  Hon. Simplex Chityola Banda, Malawi’s Minister of Finance and Economic Affairs, said, “The ARC payout always comes in when we need it the most. This is why the Government of Malawi is committed to strengthening the ARC initiative. This will involve two core actions: mobilising more premiums to increase insurance coverage, and supporting ARC sustainability through voluntary contributions and membership fees payment”  The Minister expressed deep appreciation for the ARC Group donors for supporting the ARC initiative. The prolonged dry spell in Malawi, an extension of the previous season’s devastating El Niño-induced drought, has led to widespread crop failures, and deepened the vulnerabilities of farming communities that are still struggling to recover from the successive droughts. Many affected households now face acute food insecurity and require urgent assistance, underscoring the critical need for layered social safety nets and long-term resilience building.   “We commend the Government of Malawi for its foresight and leadership in embracing climate risk insurance as a vital tool to protect its people,” said David Maslo, CEO, ARC Ltd. “Our thoughts are with the families and communities affected by this drought, and through this payout, we stand with them. At ARC Ltd, we remain deeply committed to innovating solutions that empower African countries to anticipate, prepare for, and respond swiftly to climate shocks,” he continued. Albert Mafusire, Principal Country Economist said “The African Development Bank is financing Malawi’s national disaster insurance through its ADRiFi Programme to build the country’s resilience to climate change. This proactive strategy ensures that rapid, predictable funds are available following disasters like floods or droughts. The primary goal is to protect the livelihoods of vulnerable populations, particularly smallholder farmers, and safeguard the nation’s overall development.” “We are grateful for the continued efforts to strengthen Malawi’s resilience. The collaboration between the Government of Malawi, our partners, and the ARC Group is a powerful testament to the importance of partnerships in advancing climate response across the continent,” said Dr. Jean Chrysostome Ngabitsinze, ARC Group Director General. “Malawi fully recognises the impacts of climate change and has taken deliberate steps to ensure its preparedness to respond,” he concluded.     The combined payouts of the traditional and anticipatory sovereign insurance policies will complement other ongoing country and humanitarian response to the drought. —–Media ContactFor African Risk Capacity Group: Michele Karambiri, Head of Communication, ARC Group, Email: michele.karambiri@arc.int  

Press release

Angola, Burundi, Malawi, Seychelles and Zambia join REPAIR for rapid access to disaster response funding Johannesburg, July 24, 2025 – The World Bank has approved the accession of Angola, Burundi, Malawi, Seychelles and Zambia to Regional Emergency Preparedness and Access to Inclusive Recovery (REPAIR) under Phase 2 of the program. They will join Phase 1 countries – Comoros, Madagascar and Mozambique – in REPAIR which provides for the rapid and effective disbursement of emergency funds – within seven business days – for a range of natural shocks to boost national disaster relief and recovery efforts, save lives and protect livelihoods. As participating countries in REPAIR, they will have access to tailored, pre-arranged financing under the Regional Climate Risk Fund (RCRF), a USD926 million multi-layered vehicle created to respond to shocks according to their severity. In addition to unlocking swift payouts in the event of a disaster, participation in REPAIR gives these countries access to a regional platform for the enhancement of their Disaster Risk Financing and Operational Preparedness capabilities. World Bank Lead Financial Sector Specialist and REPAIR Regional Lead, Caroline Cerruti, highlights the importance of the program’s regional nature: “We are thrilled by the expansion of REPAIR to five additional countries, which brings the program to scale. The regional approach enhances the cost effectiveness of financial instruments to respond to disasters, fosters the exchange of knowledge and innovative practices, and strengthens financial preparedness to ensure timely support for vulnerable communities in times of crisis. We look forward to the collaboration with ARC Limited and participating countries to build their resilience to shocks.” REPAIR has been specifically designed for speed, flexibility and sustainability, principles that are indispensable in times of crisis. As the frequency and intensity of natural shocks increase, the ability to deliver vital foodstuffs, medicines and shelter to affected populations within the first days of a disaster is critical. By widening its geographical reach, approval of Phase 2 of the program boosts its ability to enhance the resilience of vulnerable populations in Eastern and Southern Africa (ESA), as REPAIR’s Senior Program Manager, Avinash Ramessur, says: “We are extremely proud of our partnership with the World Bank and the trust provided to us through the extension of REPAIR to five additional countries so as to continue our support to the ESA region. REPAIR is a pioneering programme to provide, support and facilitate the flow of funds to affected populations for responding to loss and damage caused by disasters and to support the resilience of local economies through innovative financial mechanisms. We look forward to continued engagement with our participating countries and to improve their capacity in being better prepared against shocks.” REPAIR was approved by the World Bank in August 2024. In this brief timespan to-date, two participating countries – Comoros and Mozambique – have successfully triggered disbursement requests following the passage of tropical cyclones Chido and Jude, respectively. In the latter case, the program paid out USD16.8 million, less than two business days after the request for the purchase of life-saving supplies. REPAIR is financed by the World Bank with support from the Global Shield Financing Facility and implemented by ARC Ltd, a hybrid mutual insurer and financial affiliate of the African Risk Capacity Group. It aims to strengthen the financial and operational preparedness of countries in ESA, a region which remains heavily dependent on agriculture and thus particularly vulnerable to nature hazards such as droughts, floods and cyclones. As the interim CEO of ARC Ltd., David Maslo explains, approval of Phase 2 represents a significant milestone for the program: “This expansion underscores the relevance of REPAIR in providing innovative financial solutions that deliver fast and flexible support to communities facing growing climate risks. We greatly value our partnership with the World Bank and appreciate their trust in extending the programme to five more countries. ARC Ltd remains fully committed to working alongside Angola, Burundi, Malawi, Seychelles, Zambia, and all participating nations to strengthen disaster preparedness and resilience across the region.” REPAIR disburses the funds to the Ministries of Finance of participating countries, which then transfer them to pre-approved delivery channels, including national disaster agencies and competent ministries, for effective disaster response. Beyond its contribution to national emergency relief and recovery efforts, REPAIR also seeks to reinforce the long-term economic resilience of its eight participating countries via support for MSMEs and women-led SMES. English version – Version française – Versão portuguesa Media contacts:Avinash Ramessur, Senior Program Manager, REPAIR: aramessur@ltd.arc.int Nicholas Rainer, Communications Specialist, REPAIR: nrainer@ltd.arc.int

ARC LTD AND KLAPTON RE JOIN FORCES TO EXPAND CLIMATE INSURANCE ACROSS AFRICA

Lusaka, Zambia – 28 April 2025 — ARC Ltd and Klapton Reinsurance Limited (Klapton Re) have today signed a Memorandum of Understanding (MoU) in Lusaka, Zambia, announcing a new partnership that adds to the growing momentum across the continent to strengthen protection against climate risks. This collaboration brings together a development insurer with expertise in disaster risk financing and a private reinsurer with a strong footprint in African markets—two complementary players joining efforts to broaden access to practical, locally-adapted insurance solutions for vulnerable communities. The initiative comes at a time when the effects of climate change are being felt more widely and severely across Africa. By pooling technical know-how, regional networks, and local implementation capacity, ARC Ltd and Klapton Re aim to expand the reach of climate insurance in ways that are responsive to both immediate recovery needs and long-term resilience goals. This agreement lays the foundation for a continent-wide collaboration that will bring affordable and accessible climate insurance to people who need it most — especially small-scale farmers and families vulnerable to droughts, floods and other natural disasters. By combining ARC Ltd’s deep expertise in data-driven insurance solutions with Klapton Re’s strong local presence and client networks, the two organisations are set to scale up protection for African lives and livelihoods. “This partnership is about complementing each other’s strengths to drive real change,” said Lesley Ndlovu, Chief Executive Officer of ARC Ltd. “ARC brings expertise in designing climate insurance solutions tailored to African needs, while Klapton Re brings deep market knowledge and access to communities on the ground. Together, we can bring climate risk insurance to scale and ensure no one is left behind.” “At Klapton Re, we see this collaboration as a unique opportunity to combine innovation with tailor made reinsurance capacity,” added Kudzai Bingepinge, Chief Executive Officer of Klapton Re. “By partnering with ARC Ltd, we’re enhancing our ability to deliver relevant and impactful insurance solutions, starting in Zambia and expanding across the continent. It’s about making climate protection real and reliable for the people who need it most.” A plan to build resilience Under the MoU, ARC Ltd and Klapton Re will work together on several fronts to help African countries better manage climate risks before disasters strike. They will co-develop and roll out new insurance products tailored to the needs of farmers and low-income families, enabling them to recover more quickly from climate-related losses. The first programme under this collaboration is set to launch in Zambia in November 2025, focusing on protecting rangeland areas vulnerable to drought. In addition, the two organisations will support local insurance companies by providing technical expertise in risk assessments and product development, both before and after weather events. They also plan to deliver training for brokers, agents, and other key actors to strengthen the overall insurance ecosystem. Engaging with regulatory bodies will be a key part of the work, ensuring that all products meet national standards and are introduced responsibly. To broaden their impact and build trust, the partners will conduct joint awareness campaigns and roadshows across the continent. Finally, they aim to explore digital innovations—such as a mobile app that automates crop damage assessments—to make climate insurance more efficient, accurate, and transparent for everyone involved. A timely response to a growing threat With climate shocks becoming more frequent and severe, African countries face increasing economic losses and food insecurity. Yet access to financial protection remains low. Through this collaboration, ARC Ltd and Klapton Re are taking proactive steps to close that gap and build long-term resilience. This MoU is the first step toward delivering real solutions for real people — so that when disaster strikes, recovery can begin immediately.

Groundbreaking Joint Grant Agreement signed as Global Shield Solutions Platform supports Regional Risk Pools’ move from commitment to implementation

The African Risk Capacity Limited (ARC Ltd.), CCRIF SPC (the Catastrophe Risk Insurance Facility of the Caribbean and Central America), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) have signed a landmark joint grant agreement with the Global Shield Solutions Platform (GSSP) for €4.7 million to advance the implementation of their Joint MoU signed in 2022.