The Malawian government has received an $11.2 million insurance payout for a severe El Niño-related drought that prompted the southern African nation to declare a state of disaster earlier this year.
The African Development Bank announced on Monday that Malawi has received an $11.2 million insurance payout for the severe drought caused by El Niño.
The country had drought insurance through the bank and the African Risk Capacity Group, an AU agency.
The funds will be used to provide food aid to roughly 235,000 households in the most affected regions and offer direct relief payments to over 100,000 households. President Lazarus Chakwera called the payout “a lifeline for our powerless populations”.
Malawi, already among the world’s poorest nations, has faced significant food shortages due to the drought, which persisted for a year before ending in June.
The government declared a state of emergency in March, citing a food crisis in 23 of its 28 districts.
El Niño’s effects led to widespread crop failures across southern Africa due to below-average rainfall between November and April.
This disruption has severely impacted small-scale farmers, who depend on agriculture for their livelihoods.
The Southern African Development Community (SADC) stated at a summit in Zimbabwe that around 68 million people, or 17% of the region’s population, are in need of assistance because of the drought.
The U.S. Agency for International Development reported that the first quarter of this year saw the most severe drought in southern Africa in over a century.
In response, Zambia and Zimbabwe have declared states of disaster and sought international aid. Mozambique, Zambia, and Zimbabwe are set to receive drought insurance payouts by September, as noted by the African Development Bank.
However, these funds may be insufficient; Zimbabwe, for example, will receive $31.8 million but had previously requested $430 million in humanitarian aid.
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