ARC Ltd Integrated Annual Report 2023

62 For over a decade, the people of Mali have faced challenges that have had a significant impact on their food security and livelihoods, including unpredictable rainfall and drought, ongoing conflicts, and mass population displacements. As Mali is heavily dependent on agricultural production with most of its adult population involved in subsistence farming, it is particularly affected by the impact of climate change. Through its innovative Replica programme, ARC Ltd. has assisted Mali in managing drought risks, enabled rapid intervention, and contributed to strengthening resilience against the impacts of climate change. The programme complements government efforts to combat food insecurity and malnutrition through the participation of Mali's Replica partner, the World Food Programme (WFP). Drought severely impacted Mali and several other West African countries in 2022, triggering a payout from ARC Ltd. to the WFP in early 2023. $8 million was allocated to Mali, enabling the WFP to reach hundreds of thousands of food-insecure people with cash and food assistance, and affected households received cash transfers from March to May 2023. No further payments occurred for the rest of 2023 as the drought thresholds were not met. The Replica programme has been critical to Mali's disaster risk management efforts over the years, according to government representative Moussa GOÏTA. The swift arrival of funds from ARC Ltd. compared to longer wait times for governmental resources has made a significant difference to communities. "Farmers in a pastoral crisis have lost everything. They need money to buy food for their animals and seeds to start growing crops for subsistence. The longer they have to wait, the worse the outcome. And if we, as the State, have to wait to intervene to help those affected by food insecurity, it is the most vulnerable who suffer the most," states GOÏTA, emphasising the importance of parametric insurance for facilitating a rapid response. "Replica is a beneficial initiative. While it is the sovereign role of the State to intervene, state resources are limited, especially in the current country context. By pooling efforts, the State can benefit from the ARC Ltd. payout and act quickly before taking over. Secondly, we are alerted by ARC Ltd. when satellite data indicates the potential for drought. Being informed in advance allows us to take anticipatory measures. If we intend mobilising free food distributions, for example, we will already pre-position the stock in the areas where we need to intervene." MEMBER STATE I NTERV I EW: MAL I MEMBER STATE INTERVIEW: MALI Rapid response, lasting impact with Replica MOUSSA GOÏTA Government Of Mali

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