Zimbabwe has received a direct drought insurance payout of US$16.8 million from the Africa Risk Capacity (ARC) Group to mitigate hunger.
The payout is complemented by payouts to replica partners World Food Programme (WFP) $6.1 million and Start Network ($8.9 million), totalling $31.8 million.
Zimbabwe is grappling with the El Nino-induced drought which has left an estimated 9 million people food insecure.
Both the urban and rural populations in Zimbabwe will need food assistance before the next rainy season.
Speaking at the handover ceremony in Harare this Thursday, Ncube highlighted that this occasion marks Zimbabwe's endeavours to mitigate drought's negative impacts and solidify the nation's resilience against climate-induced adversities.
He added that the payout will be distributed to approximately 508,435 vulnerable households in 27 districts across the country, complementing the government's early drought response intervention measures.
"We appreciate the African Union for establishing the ARC Agency, offering innovative disaster risk financing solutions," added Ncube.
Zimbabwe has been an ARC Agency member since 2012, purchasing sovereign policies and replica policies from partners, and strengthening its disaster risk management systems.
"This payout contributes immensely to complementing the government's efforts in ensuring food security and the immediate response is crucial for community resilience," said Ncube.
The government has approved a blitz food distribution program, currently supporting approximately 6 million people through grain distribution.
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Ncube also indicated that the 2019/20 drought insurance payout benefited a lot of vulnerable households.
"Over 180,000 households in the highly vulnerable districts benefit ted from this payout."
Since then, the Government of Zimbabwe, in partnership with KFW, Swiss Development Cooperation, Africa Development Bank, World Food Programme, and Start Network, has consistently purchased sovereign policies and replica policies to enhance disaster risk management and ensure food security.
He commended the African Union for establishing the ARC Agency, describing it as a "quick-win solution to disaster risk management and financing for many African countries."
Ncube also praised the ARC for its innovative sovereign products, expressing confidence that they will be employed to mitigate against natural disasters.
