Refugees at Dzaleka Refugee Camp in Malawi have begun receiving their first-ever insurance payouts aimed at alleviating the devastating effects of the El Niño weather pattern, which severely damaged their crops.
The payouts, totaling nearly $408,000, are being distributed through a collaboration between the African Risk Capacity Group, KfW Development Bank, and the UNHCR. The initiative leverages the Replica program, a groundbreaking insurance model that enables humanitarian organizations to purchase policies on behalf of countries to respond to climate-related disasters.
According to Precious Mkoka, development officer for the UNHCR in Malawi, the funds target 4,000 households participating in agricultural activities, providing them with $33 per household each month for three months. “This support is specifically for those who faced drought conditions or the impacts of El Niño last year,” Mkoka explained.
The payouts are set to benefit both refugee families and Malawian communities hosting them. Malawi itself received a separate $11.2 million insurance payout in August to bolster recovery efforts following a nationwide drought attributed to El Niño.
The African Risk Capacity Group emphasized the Replica program’s role in extending critical support to vulnerable populations. “This initiative ensures that more people, including refugees, are better prepared to cope with climate shocks,” said Evaristo Sikasunda, the group’s country engagement manager.
At Dzaleka, some beneficiaries have expressed plans to use the money to purchase seeds for replanting, while others have raised concerns over the adequacy of the payments given their significant crop losses.
Dzaleka, originally designed for 12,000 residents, now shelters over 50,000 refugees and asylum seekers from countries such as Burundi, Rwanda, Somalia, Ethiopia, and the Democratic Republic of Congo, making it Malawi’s sole refugee camp.
This landmark initiative marks a significant step in providing climate-focused financial support to displaced communities in one of Africa’s most overburdened refugee camps.
