Lesotho Receives M48.6 Million Payout from ARC Drought Insurance Policy

The African Risk Capacity (ARC) has issued an insurance payout of M48,608,055.05 ($2,767,958) to the government of Lesotho. The payout activates the country’s sovereign drought insurance policy for the 2024/25 agricultural season.

In an interview on Monday, Ms. Mahlape Koali, Assistant Public Relations Officer of the Disaster Management Authority, explained that the funds will support the country’s Final Implementation Plan (FIP). The plan provides emergency food aid and cash transfers to households affected by the drought.

The payout will reach vulnerable households across all 10 districts of Lesotho. Each household will receive M1,500, as determined by the Lesotho Vulnerability Assessment Committee (LVAC). The initiative is expected to benefit 27,638 households, with an average of four members per household.

This intervention aims to reduce the immediate impact of drought on food security, offering targeted support to the most affected communities. The ARC payout highlights Lesotho’s proactive approach to disaster risk management and the value of sovereign drought insurance in protecting citizens during climatic shocks.