OFFICE OF THE PRESIDENT OF THE REPUBLIC REPUBLIC OF MALI ------------***------------ One people –One goal –One faith FOOD SECURITY ------------***------------ COMMISSION ------------***------------ Operations Plan African Risk Capacity (ARC) MARCH 2015 1 Table of Contents SECTION 1: GENERAL INFORMATION ......................................................................................................................................................................... 4 SECTION 2: COUNTRY DROUGHT PROFILE .................................................................................................................................................................. 5 SECTION 3: INSTITUTIONAL ARRANGEMENTS ........................................................................................................................................................... 19 SECTION 4: RISK TRANSFER PARAMETERS ................................................................................................................................................................ 28 SECTION 5: SCENARIO DEFINITION AND GEORGRAPHIC COVERAGE ............................................................................................................................ 29 SECTION 6: INTERVENTION DETAILS ........................................................................................................................................................................ 33 FIRST INTERVENTION ......................................................................................................................................................................................... 35 SECOND INTERVENTION ..................................................................................................................................................................................... 48 THIRD INTERVENTION ........................................................................................................................................................................................ 55 SECTION 7: MONITORING AND EVALUATION (M&E) FRAMEWORK AND PLAN ............................................................................................................. 63 SECTION 8: PROGRAM RISKS AND ASSUMPTIONS ..................................................................................................................................................... 65 SECTION 9: DEFINITION OF STANDARD OPERATING PROCEDURES .............................................................................................................................. 66 ANNEXES ............................................................................................................................................................................................................. 70 2 Abbreviations ARC: African Risk Capacity ARV: Africa RiskView CCSPPSA: Coordination and Monitoring Committee on Food Security Programmes and Projects (Comité de Coordination et de Suivi des Programmes et Projets de la Sécurité Alimentaire) CCS/PSA: Coordination and Monitoring Committee on Food Security Programmes (Comité de Coordination et de Suivi des Programmes de Sécurité Alimentaire) CICC: Interministerial Crisis Coordination Committee (Comité Interministériel et de Coordination de Crise) CNSA: National Food Security Council (Conseil National de Sécurité Alimentaire) CRA: Regional Agricultural Chamber (Chambre Régional d’Agriculture) CSA: Food Security Commission (Commissariat à la Sécurité Alimentaire) DGPC: Directorate-General for Civil Protection (Direction Générale de la Protection Civile) DPS: Monitoring and Planning Department (Département de Suivi et de la Planification) EWS: Early Warning System INSTAT: National Institute of Statistics (Institut National de la Statistique) NGO: Non-Governmental Organisations NSR: National Security Reserve OPAM: Mali Agricultural Products Board (Office des Produits Agricoles du Mali) NRP: National Response Plan (Plan National de Réponse) PRMC: Cereal Market Restructuring Programme (Programme de Restructuration du Marché Céréalier) SIS: State Intervention Stock TFP: Technical and Financial Partners UTGFS: Safety Net Prgamme Technical Cell (Unite Technique de Gestion des Filets Sociaux) 3 SECTION 1: GENERAL INFORMATION Name of Country: Mali Contact Person for Country Mr. Minister, Commissioner responsible for Food Security. Dr. Nango Dembele. Tel. +223 66 75 Operations Plan 03 66. Email. [email protected] Step1: Provide a brief overview of ARC, parametric weather insurance, risk of drought, and the purpose of the operation plan. Mali has a limited capacity to adapt the impacts of climate change due to its weak socio-economic conditions. The country has already experienced a number of climate-related risks, including drought, floods, storms and high temperature variability. Many rural areas of Mali already experience severe droughts and irregular rainfall which cause diminished agricultural production. This impact represents a priority threat to food security and Mali’s economy given that agriculture represents half of the country’s GDP. Mali has experienced three severe droughts during the past 50 years: in 1973, 1984 and 2004. This cycle has been disrupted over the past decade by various phenomena including climate change which has resulted in three episodes of drought, in 2004, 2009 and 2011. The various crises that the country experienced also had an impact on pasturage, with cattle farming being the second most important activity in the primary sector and accounting for 9,6% of the gross domestic product (GDP)1 It should however be noted that the 2011-2012 food crisis was exacerbated by the political and security situation which affected some 28% of the population. Moreover, in general Mali has a relatively high level of malnutrition which frequently exceeds the alert threshold of 10%. Socio-cultural factors are responsible for this phenomenon to a greater extent than the actual availability of food. The above information highlights Mali’s need to have significant resources available so as to be able to respond to these vicissitudes which increase the country’s vulnerability. Because of insufficient public resources, it makes sense for Mali to become a member of the pan-African mutual risk management initiative, the African Risk Capacity (ARC). African Risk Capacity (ARC) is a Specialized Agency of the African Union designed to improve the efficiency of emergency responses in member countries in the event of drought. This mechanism allows these countries to have access to financial resources in order to implement their emergency response plans in a timely and proactive manner. 1 : DNSI (National Directorate of Statistics and Informatics) Survey Reports. 4 African Risk Capacity (ARC) is an innovative initiative of the African Union aimed at: • Providing timely funds in the event of drought in order to improve the existing response mechanisms; • Reducing management costs by pooling risks through different ecosystems; and, • Reducing the impact and the cost of natural disasters for Governments. By doing so, ARC: Transfers the power of decision to African Governments; Transfers the risk to the international financial markets. These operations are conducted through the Africa RiskView software that allows the ARC financial management of climate risk within a same portfolio, by enabling countries to: Analyse and control their food safety risk associated with drought; Define their participation in ARC using transparent criteria; Check any pay outs from ARC. Risk management and investments contribute to increased resilience and development: The ARC contingent funds complement and reduce reliance on emergency calls; Investments increase the productivity and resilience to shocks of frequency 1:10 - 1:15; ARC facilitates the extension of commercial insurance made more attractive by the resilience. Purpose of the Operational Plan: Provide funding to appropriate responses to the populations affected by drought; Strengthen the resilience of vulnerable populations. SECTION 2: COUNTRY DROUGHT PROFILE Step 2: Describe the general pattern of rainfall and seasonal calendar. Drought and irregular rainfall are expected to become a great threat in the future due to the climate change. The average temperature in Mali is expected to rise by between 2.71 and 4.51 degrees C by 2025, rainfall could decrease by 8 to 10 per cent by 2025 (Ministry of Environment, 2000); and there is projected to be an increase in inter-annual variability (Ministry of Environment, 2007). The sudano-Sahelian zone of south–central Mali is very likely to be the region most affected by climate change with significant 5 losses in crop production, including cotton, millet, sorghum, rice can be caused in five representative rural areas (Bougouni, Diola, Selingue, Koutial, Sikasso). Rainfall is by far the most decisive factor in determining differences between livelihood zones. It helps to explain the degree of dependence on livestock herding and the uses to which arable land can be put. Malian livelihood zones run gamut in rainfall terms, from the desert zone in the far north with under 200mm precipitation per year (if it rains at all) to the much lusher zones in the south with between 1000 and 1300mm of rainfall annually. The Sahelian zone does not receive enough rainfall to support rain-fed agriculture while the wide Sahelian band allows cultivation of millet and cowpeas. The southern zones of the country with a higher