ARC Ltd and Klapton Re have signed a Memorandum of Understanding (MoU) to establish a new partnership aimed at strengthening climate risk protection across Africa.

Under the MoU, the two firms will reportedly co-develop and roll out new insurance products tailored to the needs of farmers and low-income families, enabling them to recover more quickly from climate-related losses.

The first programme under this collaboration is set to launch in Zambia in November 2025, focusing on protecting rangeland areas vulnerable to drought.

“The initiative comes at a time when the effects of climate change are being felt more widely and severely across Africa. By pooling technical know-how, regional networks, and local implementation capacity, ARC Ltd and Klapton Re aim to expand the reach of climate insurance in ways that are responsive to both immediate recovery needs and long-term resilience goals,” the two firms explained in a joint statement.

Lesley Ndlovu, Chief Executive Officer of ARC Ltd., commented, “This partnership is about complementing each other’s strengths to drive real change.

“ARC brings expertise in designing climate insurance solutions tailored to African needs, while Klapton Re brings deep market knowledge and access to communities on the ground. Together, we can bring climate risk insurance to scale and ensure no one is left behind.”

Kudzai Bingepinge, Chief Executive Officer of Klapton Re, said, “At Klapton Re, we see this collaboration as a unique opportunity to combine innovation with tailor made reinsurance capacity.

“By partnering with ARC Ltd, we’re enhancing our ability to deliver relevant and impactful insurance solutions, starting in Zambia and expanding across the continent. It’s about making climate protection real and reliable for the people who need it most.”

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