The Government of Senegal has received $23.1 million compensation from the AU insurance agency, the African Risk Capacity (ARC).
ARC said in a press release that the money would assist in providing early support to the people affected by drought during the 2019 agricultural season.
Earlier in September, ARC had announced that the Government of Senegal would receive a minimum of $22 million to cover losses from crop failures, caused by the severe rainfall deficits in the 2019 agricultural season.
“The $23.1 million being paid signifies a five per cent or $1.1 million increase from the amount earlier announced,” added the statement.
ARC’s tool, Africa RiskView, quoting the Senegalese government meteorological agency, the Agence Nationale de l'Aviation Civile et de la Météorologie (ANACIM), said at least 975,000 people would be directly affected by the drought.
“We are extremely committed to the African Risk Capacity, the ARC statement quoted Senegalese Interior minister, Mr Aly Ngouille Ndiaye, as saying.
ARC uses innovative financing to protect the resilience of our populations.
Senegal is one of the founding member states of ARC and has been affiliated with the agency since its creation in 2012.
The West Africa state was also one of the first to take out a drought insurance policy with ARC in 2014.
Since then, Senegal has annually renewed its insurance coverage by paying an estimated premium of CFAF 1.5 billion per year.