ARC’s covenant

This year has brought prolonged dry spells to many parts of Malawi. In April President Peter Mutharika declared a state of emergency because of food shortages; yields of maize, the staple crop, are a third below their five-year average. Prudently, Malawi had bought drought insurance from the financial affiliate of African Risk Capacity (ARC), an African Union initiative to fund disaster relief. There is one problem: ARC has not paid out.