Maseru __ TheAfrican Risk Capacity (ARC) has issued an insurance payout valued at M48, 608, 055.05 ($2, 767, 958) to the government of Lesotho as an activation of its sovereign drought insurance policy for the 2024/25 agricultural season.

Speaking in an interview with the Agency on Monday, the Assistant Public Relations Officer of Disaster Management Authority Ms. Mahlape Koali said the payout will fund the country's Final Implementation Plan (FIP) providing emergency food aid and cash transfers to households affected by the drought.

She mentioned that the payout will assist vulnerable households across the 10 districts of Lesotho providing each M1500 as determined by the Lesotho Vulnerability Assessment Committee (LVAC) reaching 27 638 households with an average of 4 members each.

She added that 90 percent of the funds will support farming families hit by crop failure while 10 percent will expand social cash transfers for ultra poor, labour constrained households.

On Friday, the African Risk Capacity (ARC) group is expected to make the official handover of the payout and expected at this event is the Minister in the Prime Minister's Office Mr. Limpho Tau, the Minister of Finance and Development planning Dr. Rets'elisitsoe Matlanyane, the Chairperson of the ARC Group Board Dr. Mothae Maruping, ARC representatives as well as Development partners and key stakeholders.