Staff Writer
Zimbabwe has strengthened its protection against climate-related shocks by joining a regional insurance pool and adopting a comprehensive disaster-risk financing strategy.
Finance, Economic Development and Investment Promotion Minister Mthuli Ncube in the 2026 national budget said Zimbabwe “ratified the African Risk Capacity (ARC) Treaty in March 2025, becoming a full member and entrenching its participation in the African Risk Capacity sovereign insurance risk pool.
“In this regard, the country subscribed for the 2025/26 African Risk Capacity sovereign drought insurance policy worth US$2.8 million, with a potential maximum payout of US$14.9 million in the event of a drought.
“The premium was subsidised by the Swiss Development Corporation (SDC), and the African Development Bank (AfDB),” he said.
He added that two humanitarian organisations — the World Food Programme and Start Network — had expanded national drought-risk cover by purchasing additional policies.
“Two Replica partners have complemented the Government’s efforts by expanding the drought insurance coverage through purchasing the ARC Zimbabwe’s Replica drought insurance policies for the 2025/26 agriculture season, amounting to US$1.5 million,” Ncube said.
The minister also announced the adoption of a Climate and Disaster Risk Financing Strategy designed to shield the economy from increasingly frequent and severe climate shocks.
He said the strategy was developed “through technical and financial support from the African Development Bank, World Food Programme, Start Network, Swiss Agency for Development and Corporation, African Risk Capacity, World Bank and Centre for Disaster Protection.”
Ncube said the strategy outlines strategic priorities and financial instruments to enhance Zimbabwe’s financial resilience to climate and disaster risks.
He said this can be achieved through sound risk assessments, a portfolio of adequate disaster risk finance instruments, mechanisms and clear rules to ensure efficient resource allocation to intended beneficiaries, and ongoing disaster risk reduction efforts to manage residual risk and fiscal impacts of disasters.
He added that the new framework “enhances financial readiness by ensuring prearranged contingency plans and finance for the Government, and cooperating partners for preparedness and prompt disaster response.
