Ghana has received a total of US$2.86 million under its first-ever sovereign drought insurance policy from African Risk Capacity (ARC) Limited to support farmers affected by severe drought conditions during the 2024 planting season.
The payout, which was officially presented to the Government on Monday, is intended to assist about 109,000 vulnerable households in farming communities across the northern and southern belts, where prolonged dry spells led to crop failures and heightened food insecurity.
The funds are also expected to help strengthen resilience ahead of the next agricultural season.
The Director-General of the ARC Group, Dr Jean Chrysostome Ngabitsinze, handed over the cheque to government officials, including the Deputy Minister for the Interior, Mr Ebenezer Okletey Terlabi, and the Director-General of the National Disaster Management Organisation (NADMO), Major (Rtd) Dr Joseph Bikanyi Kuyon.
Mr Terlabi said the insurance payout would significantly complement government’s ongoing interventions by enabling the scaling up of assistance to affected communities, improving food security and enhancing resilience among the most vulnerable populations.
He noted that climate shocks were no longer distant threats but present-day realities, adding that government remained committed to strengthening early warning systems, expanding social protection mechanisms and deepening partnerships to mitigate the impacts of climate-related disasters.
Dr Ngabitsinze explained that the payout comprised US$960,202 for the northern agricultural season and about US$1.9 million for the southern season, amounting to approximately GH¢32.9 million.
“Behind these figures lies something far more meaningful than numbers. They reflect the strong political will of the Government of Ghana to stand by its people in times of hardship,” he said.
Dr Ngabitsinze commended Ghana for demonstrating leadership by investing in preparedness and resilience, describing the country as setting a standard worthy of recognition.
Major (Rtd) Dr Kuyon described the ARC payout as a powerful affirmation of foresight, partnership and collective resolve, noting that NADMO had coordinated inter-agency actions to ensure that relief reached the right beneficiaries in a timely, transparent and accountable manner.
He said the support had helped preserve dignity, stabilise livelihoods and prevent the erosion of long-term development gains in affected communities.
The 2024 drought was among the most severe in decades, with significant rainfall deficits recorded across eight regions.
Data from the Ghana Meteorological Agency and the Food and Agriculture Organisation (FAO) showed that rainfall in July fell to about seven millimetres, compared to the long-term average of 24 millimetres, severely affecting maize, rice, groundnut and yam production.
More than 928,000 farmers were impacted by the drought, with estimated investment losses of GH¢3.5 billion and revenue losses of GH¢10.4 billion.
In response, government, through NADMO and development partners such as the World Food Programme, conducted a comprehensive drought impact assessment and rolled out early interventions, including cash transfers, relief items and the distribution of drought-tolerant seeds and fertilisers.
The ARC insurance payout was made possible through premium support from Germany’s KfW Development Bank under the Global Shield against Climate Risks initiative, easing fiscal pressure on Ghana and enabling timely access to insurance coverage.
