The Chamber of Deputies on Monday, August 3, approved a draft law ratifying the African Risk Capacity (ARC) Agreement, an African Union specialised agency that helps member states prepare for and respond to climate-related disasters and disease outbreaks.

Presenting the bill before Parliament, the Minister of Agriculture and Animal Resources Telesphore Ndabamenye said the agreement was adopted in 2012 in Pretoria, while its insurance arm, the African Risk Capacity Insurance Company Limited (ARC Ltd), was established in 2014 to provide disaster risk insurance to participating countries.

ALSO READ: Ngabitsinze elected UN Assistant SG, head of African Risk Capacity

"The institution helps African Union member states strengthen their resilience to disasters and pandemics through preparedness and timely response," Ndabamenye told lawmakers.

He said the ARC provides risk modelling, early warning services, contingency planning and other technical support to help countries better anticipate and respond to disasters.

Rwanda was among the countries that signed the agreement and is now completing its ratification process.

ALSO READ: Featured: Rwanda advances drought preparedness through risk modelling, operational planning

Ndabamenye said climate change is already causing significant economic losses in Rwanda, with floods and droughts among the major threats.

"Available data shows that floods and droughts account for losses equivalent to about 1.75 per cent of Rwanda&039;s Gross Domestic Product. If climate risks continue to intensify, those losses could rise to 3.25 per cent of GDP," he said.

He also cited the recent Marburg virus disease outbreak as an indication of the growing risks posed by pandemics, saying stronger preparedness mechanisms are needed to address emerging threats.

ALSO READ: Gaps in disaster prevention leave Rwf49bn repair bill: Senate report

The minister said Rwanda continues to face financing gaps in responding to disasters and restoring affected areas.

"Ratifying this agreement will strengthen the country&039;s preparedness, reduce the fiscal burden of responding to disasters and pandemics, and enhance national resilience," he said.

He added that the membership will allow Rwanda to work with other African countries on capacity building, strengthen early warning systems and collaborate with the ARC Secretariat on disaster risk management.

Rwanda will also contribute an annual membership fee of $50,000 as part of its obligations under the agreement.

The bill first passed the relevance stage unanimously, with all 69 MPs present voting in favour. It was later adopted in the final vote with 68 votes in favour, while one ballot was invalid.