The African Risk Capacity (ARC), a specialised agency of the African Union, has released a pay-out of US$2.7 million (M50 million) to the government of Lesotho to support households hardest hit by the prolonged dry spell of the 2024/25.
The funds according the DMA will be directed toward food aid and cash transfers for families who lost crops and livestock during the season.
Speaking at the official handover ceremony, Elias Reatile, Chief Executive Officer of the Disaster Management Authority (DMA), said the pay-out comes at a crucial time when many Basotho are struggling with food shortages.
“This payout is not just money but a solution to some of the challenges caused by drought, which has long threatened food security in Lesotho. Our mandate at DMA is to ensure that the most vulnerable communities are protected, and today is a step in that direction,” Reatile said.
The ceremony was attended by senior government officials, ARC representatives, development partners, and humanitarian agencies.
On behalf of ARC’s national partners, Elliot Vhurumuku, Country Director of the World Food Programme (WFP), highlighted the importance of collaboration in building climate resilience.
“Our partnership with ARC allows countries like Lesotho to act quickly when disaster strikes. This model of climate risk insurance enables fast responses, helping families before situations worsen,” he said.
Vhurumuku noted that WFP has successfully used ARC resources in countries such as Zimbabwe to reach vulnerable households with immediate support. He added that such partnerships are vital in strengthening disaster management strategies across the continent.
Dr. Anthony Mothae Maruping, Chairperson of the ARC Board, commended Lesotho for showing strong commitment since signing a memorandum of understanding with the agency in 2019.
“Lesotho has been consistent in addressing climate-related risks. This pay-out is proof of that commitment and of ARC’s role as an innovative financial tool for managing disasters,” Dr. Maruping said.
Delivering remarks on behalf of government, Thabo Mofosi, Minister of Agriculture, Food Security and Nutrition, expressed gratitude to ARC and its partners.
“ARC is not just a response mechanism. It is a financial lifeline that allows governments to withstand the shocks of climate change,” Mofosi said.
He stressed that disasters such as drought, frost, and floods have long undermined Lesotho’s food security and strained the national economy.
“Disasters are not only undermining food security at rural livelihoods but are also a disadvantage to the national budget and economy. Disasters destruct lives, reverse developments, and threaten our aims of visioning a prosperous nation, but, with tools like ARC, we can act quickly, reduce costs, and safeguard the dignity of affected communities.”
The minister revealed that in March 2025, the cabinet approved a Disaster Risk Financing Strategy, spearheaded by the Ministry of Finance and Development Planning, noting, the strategy provides a framework for ensuring predictable, efficient and timely responses to disasters.
“While we cannot prevent natural disasters, we can reduce their impacts by being prepared. The current pay-out will go directly to affected households, helping them secure food and rebuild livelihoods,” Mofosi explained.
He urged development partners to continue supporting initiatives that strengthen resilience and improve the lives of ordinary Basotho.
“Today’s celebration is a demonstration of solidarity and innovation in climate financing as climate involves being with new complex challenges. I urge our development partners to continue supporting initiatives that change people’s life and reaffirms a shared vision of resilience and sustainability. The government of Lesotho wishes to express its appreciation to African Risk Capacity, African Development Bank (AFDB) and KFW for their unshakeable support and partnership in advancing climate resilience and disaster risk financing efforts in the country,” he said.
Limpho Tau, Minister in the Prime Minister’s Office, reminded the audience that farmers remain at the heart of the country’s food systems.
“Whatever you ate today, thank a farmer,” Tau said, emphasising the vital role farmers’ play despite being the most vulnerable to climate shocks.
He described the pay-out as “historic” for the farming community, noting that Lesotho first signed its agreement with ARC in 2019 and confirmed participation in July 2024.
“Today we are seeing the benefits of that decision, as support reaches those who need it the most,” Tau added.
The ceremony concluded with a symbolic cheque handover led by Dr. Maruping, ARC representatives, and government officials.
Speaking to Seahlolo in an exclusive interview after the event, DMA Chief Executive Elias Reatile said the details of how the pay-out will be distributed are still being finalised.
“We are yet to sit down and agree on the allocation process. Once the plans are complete, we will call a press conference to announce the way forward,” he said.
ARC is currently helping several African countries respond to extreme weather events. In addition to Lesotho, nations such as Zimbabwe, Malawi, Madagascar, The Gambia, and Mali have all received drought insurance payouts.
