1. Doing (Even) Better With The Resources In Hand March 2018

2. $200 billion ARC Context: Current State
Global economic losses from
natural disasters in past decade
Losses attributable to extreme weather events
100 million people pushed into extreme poverty by 2030 due to climate change
Source: World Bank’s Report - Shock Waves: Managing the Impacts of Climate Change on Poverty

3. ARC Context: Africa -Current State
Figure 1- Climate vulnerability index and worst climate risks in Africa - Source: Verisk Maplecroft 2015

4. ARC Value Proposition Act Redefine Collaborate
African governments have decided to decisively act to make informed climate proof economic decisions
Redefine
ARC is changing the dialogue from Disaster Response to Disaster management and preparedness
Collaborate
Efficient Leveraging of public sector resources maximizing through capital markets

5. ARC Context: Disaster Management Response
ARC aims to provide cost-effective contingency funding to protect livelihoods and development gains

6. *Based on average household of 6 individuals
Household and National Level Impacts
Cost by household* of delaying response until X months after the harvest
 *Based on average household of 6 individuals
Months 1 2 3 4 5 6 7 8 9
Cost
Negligible cost
US$ 49
US$ 1,294
Assistance needs to reach the affected population before month four to prevent the impact of reduced food intake or at least by month six to prevent asset sales

7. Pay-Outs $34 million paid out 2.1 million people assisted
$54 million in premium

8. Payout Implementation
Description
Senegal
(USD $16.5 Million))
Mauritania
(USD $6.3 Million)
Niger
(USD $3.5 Million)
Malawi
(USD $8.1 Million)
Planned /Implemented Activities
Targeted food distribution
Subsidized sales of cattle feed
Targeted Food distribution
Targeted Food Distribution
Conditional cash transfer and food distribution in drought-affected regions
Cash transfer
Replenishment of Strategic Grain reserves
Beneficiaries
Total beneficiaries: 927,416 people
Beneficiaries: 900,000 animals
Total beneficiaries: 250,000 people
Total beneficiaries: 157,000 people
Total beneficiaries:
808,834 people
All the payouts were approved by the ARC Ltd Board on 19 January 2015, and they were received by the respective countries (according to the receipts) on the following dates:
Senegal: 27 January
Mauritania: 29 January
Niger: 25 February

9. Innovation in Humanitarian Sphere
TAKAFUL (Islamic Insurance) & ARC
None of the ARC Member States or development capital partners receive any profit or dividends from ARC
Profit distributions are prohibited by the ARC founding documents
Any annual financial surplus, is used to expand the support capacities of ARC to the Member States
Mutual Ownership
Unique mutual risk transfer facility whose purpose is risk sharing and humanitarian relief
Aligned with the principles of Takāful and broader principles of providing assistance to vulnerable and poor populations
Innovation in Humanitarian Sphere
ARC is looking to explore its Sharia compliance with key partners
Islamic Finance offers an opportunity to utilize innovative tools to address development needs in a manner that aligns with market demands
Sharia Compliance
Takaful could be an innovative, financially efficient means to address humanitarian challenges