Ghana set to receive second drought insurance payout worth $1.9 million

By Henry Gale

April 8 - (The Insurer) - The government of Ghana is set to receive a second payout on its drought insurance policy to support vulnerable communities, the Global Shield against Climate Risks said on Tuesday.

The $1.9 million claim relates to the effects of drought in Ghana's southern regions, following a $960,202 payment earlier this year for the country's north.

Ghana first purchased parametric drought insurance from regional risk pool African Risk Capacity in July 2024, with $1 million of financial support from the Global Shield Solutions Platform and development bank KfW on behalf of the German government.

The first payout was used to reach 39,000 people with emergency food assistance, including 62.5 kg of rice and 5 litres of cooking oil, according to the Global Shield.

In a statement, the organisation said drought response measures funded by the insurance payouts would help safeguard livelihoods until the next harvesting season.

African Risk Capacity payouts have also been triggered in relation to drought conditions in Somalia and Ivory Coast in recent months.