Malawi has received an $11.2 million insurance payout due to a devastating drought linked to El Nio that caused the nation to declare a state of disaster earlier this year.
The African Development Bank announced on Monday that Malawi received the payout this month. Malawi had obtained a drought insurance policy from the Bank and the African Risk Capacity Group, an agency of the African Union.
These funds will be used to provide food assistance to approximately 235,000 households in Malawi’s most severely affected areas and will also aid in making direct relief payments to over 100,000 households, as reported by the African Development Bank.
Malawian President Lazarus Chakwera said the payout has provided crucial support for their vulnerable populations.
Malawi, one of the poorest countries in the world, has been severely impacted by a drought that has devastated its food supply. This drought has been linked to the El Nino weather pattern, which lasted a year before ending in June.
In response to this crisis, the country declared a state of emergency in March, acknowledging a food shortage in 23 of its 28 districts. The region experienced crop failures as El Nino brought below-average rainfall between November and April. Small-scale agriculture is crucial for the livelihoods and sustenance of millions of people in southern Africa.
Zambia and Zimbabwe have declared disaster and requested international assistance. The African Development Bank stated that Mozambique, Zambia, and Zimbabwe are anticipated to receive drought insurance payouts by September.
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