Malawi receives $11.2 million drought insurance payout

The Malawian government has received an $11.2 million insurance payout for a devastating El Niño-linked drought that prompted a state of disaster earlier this year, according to the African Development Bank.

The payment, delivered this month, was facilitated through a drought insurance policy by the bank and the African Risk Capacity Group, an African Union agency.

This aid will support food assistance for about 235,000 households and provide direct relief to over 100,000 families.

President Lazarus Chakwera called the payout “a lifeline for our vulnerable populations,” highlighting its critical role in alleviating the crisis.

The drought, driven by a year-long El Niño phenomenon, severely impacted Malawi’s food supply.

The drought, lasting from November to April, resulted in widespread crop failures in Malawi and affected 23 of its 28 districts.

The country, already one of the poorest globally, declared a state of emergency in March due to the food crisis.

Southern Africa faces a severe drought crisis, with 17% of the region’s population needing assistance.

The U.S. Agency for International Development reported the worst drought in over a century.

Zimbabwe, Zambia, and Mozambique also declared states of disaster and await further drought insurance payouts.

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