Rwanda is expected to strengthen its systems for preparing for and responding to disasters after the ratification of the agreement establishing the African Risk Capacity (ARC) Agency.

The agreement, signed in Pretoria, South Africa, on November 23, 2012, was approved for ratification under a law published in the Official Gazette on September 11.

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The Minister of Agriculture and Animal Resources, Telesphore Ndabamenye, said the African Risk Capacity Agency is expected to help Rwanda improve disaster preparedness, including early warning and risk analysis, while reducing pressure on the national budget when disasters occur.

"The institution helps countries within the African Union to prevent and become resilient to the impacts of disasters and pandemics,” Ndabamenye said.

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He noted that Rwanda faces risks from climate-related disasters and disease outbreaks, while financing remains a challenge when responding to emergencies and repairing their damage.

"The approval will help Rwanda increase its preparedness efforts and reduce the burden on the budget caused by climate change and pandemics,” he said.

Under the agreement, the ARC Agency is mandated to help member states plan and prepare for emergencies caused by extreme weather events and natural disasters. It is also expected to support countries in developing contingency plans and risk-management strategies and assessing the financial impact of disasters.

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The agreement further provides for pooling financial resources among member states to provide contingency funding and establishing an insurance or financial facility for insurance, reinsurance and other risk-transfer arrangements.

What Rwanda will do

Ndabamenye said Rwanda’s role will include establishing and following warning channels to identify disaster risks and the effects of climate change early.

He said Rwanda will also work with the ARC executive structures in making decisions on possible risks and climate-related impacts.

The agreement gives member states a role in the Conference of the Parties, which is the supreme organ of the ARC Agency. Its responsibilities include approving the agency’s strategic plan, programme of work and budget, determining membership fees and adopting rules on compliance with approved contingency plans.

The agreement also provides for a Governing Board elected from among parties that have current insurance contracts with an ARC subsidiary or affiliated entity.

According to ARC, 18 African Union member states signed the agreement on November 23, 2012, with Rwanda among the original signatories.

The ARC Agency was established as a specialised agency of the African Union to help member states improve their ability to plan, prepare and respond to extreme weather events and natural disasters.

The agency's country engagement process includes technical work on risk modelling, contingency planning and risk-transfer mechanisms before countries can join its insurance risk pools.