“This year’s European summer has exposed the harsh new climate reality,” says Sue Garrett, GM Supply, Pricing & Marketing at Flight Centre South Africa. “The temperatures are impacting comfort, safety, accessibility, and long-term sustainability.”

But it’s not all doom and gloom, according to Garrett. It’s simply a matter of changing the way we approach our European holidays.

A recent Flight Centre global survey shows 72% of South Africans intend to travel outside of peak season in 2025, with many choosing either off-season (49%) and shoulder season (23%) travel to save money, avoid crowds, and now, escape the extreme temperatures.

So, how should you plan a memorable European escape in this new climate era? What destinations are still safe, stunning, and worth every cent? And how do you future-proof your travel plans for the long haul?

The summer that changed everything: What’s happening in Europe right now

Here’s a quick snapshot of what’s transpired over the past couple of months:

• Temperatures hit 46.6°C in Portugal (the highest temperature ever recorded in Mora, Évora) and over 40°C in 17 of Italy’s major cities, including Rome and Milan.
• 2,300+ deaths were recorded across 12 cities in just 10 days (ending 2 July 2025) – around 65% of them directly linked to climate change.
• Tourist landmarks (like the Eiffel Tower’s summit) closed down for safety. Entire airports in Turkey were temporarily shut.
• Hotels without air conditioning became unusable during peak hours, and emergency rooms in parts of Italy reported a 20% spike in heat-related admissions.

“When a destination like Greece starts introducing ‘climate crisis taxes’, and major landmarks close their doors at midday, it’s a clear sign the game has changed,” comments Garrett. “And while Europe isn’t off-limits by any means, South Africans need to travel with new awareness – about heat, timing, and backup options.”

Of course, none of this is happening in isolation. Scientists have confirmed that heatwaves like this are now 10 times more likely due to human-caused climate change. With Europe being the fastest-warming continent in the world (warming at roughly twice the global average rate since the 1980s), summer no longer guarantees a carefree escape.

The silver lining? South African travellers are already showing signs of adapting, and that means smarter travel, better timing, and far richer experiences.

What’s changing?

Traditionally, peak European summer (June to August) has been the go-to for South African travellers seeking long, sunny days abroad – and it’s still a popular option. But, according to Flight Centre’s Travel Experts, Saffers are starting to consider new hotspots, too (that aren’t actually hot):

• Scandinavia & the Nordics: Sweden, Finland, and Norway are seeing a spike in mid-year bookings, offering cooler temps, jaw-dropping landscapes, and 20+ hours of daylight in summer – and far more comfortable conditions than the Med.
• High-altitude escapes: Think Slovenia’s Julian Alps, the Swiss countryside, Austria’s Lake District, or even Scotland’s Highlands. Built-in natural cooling systems. No AC required.
• Underrated Balkan gems: Countries like Albania, Montenegro, and Bulgaria are also exploding in popularity. Why? They’re stunning, far more affordable than Western Europe, have fewer crowds, and yes, they’re still mostly off the heatwave radar.

How to future-proof your European holiday

1. Shift your dates

When to go: April–June or mid-September–early November

Instead of melting in July, picture strolling cobbled streets under spring blossoms or autumn leaves. You’ll experience:

• Daytime highs in the low 20s (°C) – perfect for sightseeing
• Smaller crowds at big-ticket attractions
• Cheaper flights and accommodation
• Easier reservations at those bucket-list restaurants
• Book accommodation that’s built for the heat

AC is no longer a luxury!

• Check that your hotel or guesthouse offers aircon or ceiling fans (especially in older cities where climate control isn’t always standard).
• Look for properties with blackout curtains, shaded courtyards, or pools for post-sightseeing dips.
• Choose stone heritage buildings over top-floor apartments with sunroom conservatories (they’re heat traps!).

If you’re staying in budget or historic hotels, double-check whether climate control is seasonal – it’s sometimes only available in winter!

2. Plan like a pro

A few habits can make or break your day:

• Sightsee early or after sunset: Hit top attractions before 10am or book night tours (many cities, like Istanbul, now offer starlit walking tours and after-dark museum entries).
• Stay hydrated: Bring a refillable water bottle; many cities have public refill stations.
• Choose shaded activities: River cruises, garden picnics, canopy-covered markets, or underground city tours are all good options.

Additionally, ask your Travel Expert about air-conditioned tours, skip-the-line tickets, and indoor city passes for those scorching mid-days.

3. Think beyond summer – and beyond “the usual”

Far too often, travellers default to July in Paris or August in Amalfi. There’s a whole continent beyond the clichés:

• Christmas markets in Germany or Austria
• Autumn harvests in northern Spain’s wine country
• Spring tulip season in the Netherlands
• Edge-of-summer Northern Lights (late August) in Iceland

Also, says Garrett, before booking, ask your Travel Expert about:

• Weather-readiness of your destination
• Travel insurance options that cover heat-related delays or cancellations
• New taxes or climate levies (like Greece’s “resilience tax”)

“You don’t have to give up those bucket list dreams – you just have to flip the script. Sometimes, the best version of your dream holiday is when you can slow down, spread out, spend wisely, and feel confident you’re making the most informed choices possible,” Garrett concludes.

STELLENBOSCH, Western Cape – Think the mid-year school holidays are over and there’s nothing left to look forward to until December? Think again. South Africa’s premier wine region is busy curating a compelling events calendar to see us through to the end of the year – and it’s an irresistible invitation to visit more, stay longer, and immerse yourself in experiences that nourish both body and soul.

“Visit Stellenbosch’s seasonal Stay and Play specials are still going strong,” says Annemie Liebenberg, CEO of Visit Stellenbosch.

“It’s the perfect excuse to experience Stellenbosch in winter, and connect more meaningfully with our place, our people, and our culture – which comes alive through wine, art, music, literature and heartfelt hospitality. It’s more than just a visit, it’s a chance to slow down and discover the stories, flavours and people that make this region so extraordinary.”

At the end of July, Wine Town Stellenbosch (26 July to 3 August) unfolds as a nine-day celebration across the region. On the to-do list are specialised wine tours, workshops, and curated vertical tastings, along with winemaker lunches and dinners, special offers at restaurants around town, and exclusive tastings available only during the event. Wine Town Stellenbosch is also the reason why Happy Hour is in full swing from 17:00 to 19:00 at selected wine bars and restaurants.

Crowning the festivities is the Stellenbosch Wine Festival, taking place on Friday, 1 August, and Saturday, 2 August. Visitors can taste some 200 wines from over 60 producers, featuring not only the region’s most renowned names but also exciting first-time participants in the event like Raats Family Wines, Hidden Valley Wines, and De Meye Vineyards. Once again, a highlight of the event is the abundant graze-table of traditional savouries and sweets by chefs Adele Grewar and Bertus Basson, continuously replenished throughout the event. With live entertainment adding to the atmosphere, the festival promises an experience as memorable as the wines themselves.

“This is our annual ‘celebration of the grape’,” explains Elmarie Rabe, GM Stellenbosch Wine Routes. “This year we’re also celebrating 100 years of Pinotage. For Pinotage lovers who want to learn more about the history of Pinotage and discover different estates, unique varietals and interesting pairings – it makes for a perfect few days away.”

Taste Stellenbosch (1 to 30 September) gives the valley’s culinary heritage a full month in the spotlight. It’s a chance for participating restaurants to unveil new menus and showcase their exceptional talent – and for visitors to experience the seasonal produce, bold flavours, and deep-rooted traditions that inspire Stellenbosch’s award-winning chefs.

Come October, Toyota Stellenbosch Woordfees (11-19 October) fills the town with the magic of storytelling, literature, theatre, art, dance and film. Now in its 25^th year, Woordfees began in 2000 at Stellenbosch University as an all-night celebration of Afrikaans word art. Over the past 25 years, it has grown into one of the largest arts festivals in Africa, attracting around 50 000 festivalgoers annually.

“This year we have a few surprises in store,” says Liebenberg. “Our beloved ‘Wynskool’ masterclasses are back with Bubby 101, Chenin Blanc 101 and Pinotage 101 sessions, plus we’re adding something really special – a ‘stapstories’ walking tour through the beautiful Banghoek Conservancy with Sophia van Taak and a Woordfees Straatsoiree that will officially launch Stellenbosch’s exciting season of Street Soirees.”

Garden Town is set to return from 31 October to 9 November 2025, with stunning displays, private garden tours and a market at the town hall.

Celebrating life in Stellenbosch

Alongside Visit Stellenbosch’s flagship events, walking tours, bike tours and dining experiences in Stellenbosch and its surrounding communities (including Kayamandi, Jamestown and the Dwarsrivier Valley), offer visitors different perspectives on local life.

Stellenbosch on Foot provides an immersive historical journey through Cape Dutch architecture and significant sites, perfect for understanding how this beautiful agricultural and academic town has evolved over the years.

For those seeking authentic cultural connection, Kayamandi on Foot’s local guides share stories of daily life, traditions, and resilience while serving home-cooked flavours with warm hospitality.

The Bites and Sites cultural tours blend storytelling with culinary exploration, celebrating the diverse heritage that shaped modern Stellenbosch through biltong tastings, artisanal coffee, family recipes, and local wine pairings.

And of course, Stellenbosch’s mild weather makes outdoor exploration irresistible. Cycling enthusiasts can glide through vineyards with Bikes ‘n Wines, join small-group rides with Best Day Ever, or e-bike from Stellenbosch to Boschendal. Prefer hiking? The stunning trails of Jonkershoek Nature Reserve await or try Segway tours through the vines.

“Our mild winter weather lends itself to outdoor adventures,” says Liebenberg. “And when it rains, it’s the perfect chance to connect with local winemakers, artists, and characters who bring our town to life.”

The Art of Slow Travel

Ultimately, winter in Stellenbosch is about family fun, unplanned moments, conversations that stretch over harvest tables, and new experiences that take you well into spring, summer and beyond.

For more information about Stellenbosch’s winter offerings and Stay and Play packages, visit https://stayandplay.visitstellenbosch.org/

For media inquiries, please contact Roland Müller at roland@bigambitions.co.za.

-ENDS-

JOHANNESBURG – Following the successful launch of its postgraduate Scholarship Programme in 2023, Africa Risk Capacity (ARC) Ltd. is collaborating with consulting and technology firm Milliman Inc. again to give African students another chance to participate in the programme. Applications will open on 1 December 2024 and close on 31 March 2025.

ARC Ltd. CEO Lesley Ndlovu, who developed the programme in conjunction with Milliman Principal and Consulting Actuary Joy Schwartzman, understands the potential impact it can have. “I was a beneficiary of a scholarship which was the foundation of my career. Working with Milliman to set up our own scholarship programme is my way of contributing to expanding access to opportunities for the next generation,” he notes.

“The Africa Scholarship Programme aims to empower the next generation of leaders who are driving solutions to the continent’s climate threats. It will assist students who can’t afford postgraduate studies and encourage female students to apply, with the goal of promoting gender equality in the industry,” says Milliman Chief Sustainability and DEI Officer Christal Morris.

Last year, five scholarships were awarded to candidates from Cameroon, Côte d’Ivoire, Kenya, Tanzania and Togo.

Ange-Emmanuelle Gblaka from Côte d’Ivoire, Sandrine Dorvale Bassong Bayegle from Cameroon, and Kossi Mose Doumassi from Togo began their studies at the Institut de Formation en Alternance pour les Générations Engagées (IFAGE) in Dakar, Senegal in January. Doreen Mulwa from Kenya and Maulid Seleman from Tanzania will embark on their academic journeys at the University of Cape Town in 2025.

Next year, two new scholarships will be offered to qualifying applicants. These scholarships are specifically for students who have gained admission to advanced programmes in Actuarial Science, Risk Management and Insurance, or Agricultural Statistics. It covers full tuition, housing, living stipends, and other essential expenses for up to two years of full-time study at selected universities in Africa, including:

• École Nationale Supérieure de Statistique et d’Économie Appliquée, ENSEA, in Abidjan, Côte d’Ivoire;
• The Institut Interafricain de Formation en Assurance et en Gestion des Entreprises, IFAGE in Dakar, Sénégal;
• University of Cape Town in South Africa

The programme aligns with ARC Ltd.’s important work in Africa, where it has been offering disaster risk insurance to member states since 2014, and also supports Milliman’s social responsibility goals. Milliman, which uses its actuarial expertise and modelling frameworks to help reduce risk in vulnerable countries, will provide the funding, while ARC Ltd. will implement the programme on the ground, leveraging its relationships with African member states to make it a reality.

Graduates will also get the opportunity to pursue their dream climate careers. “We desire to see these graduates succeed, and therefore ARC Ltd. and Milliman will also be providing internships to give them a strong foundation in their chosen careers and an immersion in the challenges of risk management,” Ndlovu concludes.

Details of the scholarship can be found in the brochure and the application forms are available on https://africanscholarship.org/.

**  Ends  **

For more information about ARC Limited, or to interview Lesley Ndlovu, contact Sonnette Fourie on +27 81 072 2869 or sonnette@bigambitions.co.za. 

For more information about Milliman, contact Jeremy Engdahl-Johnson on +1 646 473 3021 or jeremy.engdahl-johnson@milliman.com. To learn more about Milliman’s commitment to social impact, go to https://www.milliman.com/-/media/social-impact/Milliman-Impact-Report.ashx.

About ARC Limited 

The African Risk Capacity Limited (ARC Ltd) is a financial affiliate of the African Risk Capacity (ARC), a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies. 

ARC Ltd is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO SWISS, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

About Milliman

Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.

To help address this gap, Norway, through the Norwegian Agency for Development Cooperation (Norad) has provided NOK 50 million (about $4.5 million) to African Risk Capacity Limited (ARC Ltd.) to implement the Supporting Adaptation Capacity Through Increased Parametric Insurance Penetration in Africa (SACPIP-Africa) initiative. The partnership was made official during a signing ceremony in the CARICOM Pavillion at COP29 on 13 November 2024, marking the significant contribution this initiative will have in addressing climate change issues.

By aligning with global frameworks like the Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action), the initiative aims to create synergies with existing environmental policies and resilience strategies.

What is SACPIP-Africa?

SACPIP-Africa is part of ARC Ltd.’s mission to expand disaster risk preparedness by strengthening governments’ ability to forecast, assess, and plan for crises. It was designed to equip African nations with the tools, knowledge, and financial support necessary to address the growing impact of climate change.

The initiative leverages parametric insurance to address Africa’s unique vulnerability to climate-related disasters. Unlike traditional insurance, parametric insurance provides pre-agreed payouts based on objective triggers, such as rainfall levels, rather than assessed losses. This ensures rapid disbursement of funds (often within 10 days) allowing countries to respond quickly and effectively to emergencies.

“The SACPIP-Africa initiative reflects a deep commitment to building a resilient and self-reliant Africa. By leveraging innovative tools like parametric insurance and developing local expertise, this program will protect livelihoods and ensure sustainable development in the face of climate challenges,” ARC Ltd. CEO Lesley Ndlovu says.

ARC Ltd. implements SACPIP-Africa with the highest standards of transparency and accountability. The program includes robust monitoring, evaluation, and learning mechanisms, as well as regular reporting to stakeholders. Semi-annual performance reviews and annual evaluations will measure progress against key indicators, ensuring that donor contributions deliver maximum impact.

Strengthening economic resilience at scale

SACPIP-Africa will be implemented over the next four years in Cameroon, Cape Verde, the Democratic Republic of Congo, Ghana, Kenya, Malawi, Mozambique, Rwanda, South Sudan, and Zambia.

By training government officials, civil society organisations, and local leaders through capacity-building workshops, SACPIP-Africa ensures that disaster risk management knowledge is embedded at the grassroots level. These efforts will focus on building institutional frameworks, establishing risk profiles, and creating contingency plans to ensure effective response mechanisms, which will result in additional coverage of $134 million and an additional 13.4 million vulnerable Africans covered over the next 3 years.

Gender inclusion is an important aspect of this contingency and operational planning and the ARC Group works with partner countries to strengthen women’s participation in disaster risk management. “We do this by actively leveraging our influence to encourage more women to be included in the working groups,” said Ndlovu. ARC also provides training to relevant government departments and country liaisons in gender inclusion and sensitivity.

“Climate change is having a devastating impact on communities in Africa, as we have witnessed this year with the drought affecting several countries in Sub-Saharan Africa,” commented the Norwegian Minister of International Development, Anne Beathe Tvinnereim. “We are excited to be partnering with ARC Ltd. Their work allows more countries in Africa and small-holder farmers to be insured against risks related to drought, flooding, or tropical cyclones.”

She said: “This project will also help countries assess the severity of risks and make sure that those most vulnerable in communities, including women and children, have their livelihoods protected.”

With an emphasis on scalability, SACPIP-Africa builds on ARC Ltd.’s ambitious vision to provide insurance coverage to over 150 million vulnerable Africans annually by 2025, scaling its current footprint of 17 insured countries to a majority of African Union member states. This is projected to deliver an economic multiplier effect, safeguarding agricultural productivity, stabilising local markets, and reducing post-disaster recovery costs.

**Ends**

For more information about The African Risk Capacity Limited (ARC Ltd), or to arrange an interview, please contact Sonnette at sonnette@bigambitions.co.za.

This publication has been produced with financial support from Norway. The contents of this publication are the sole responsibility of ARC Ltd. and can in no way be taken to reflect the views of the Government of Norway.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, the Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

These conditions, compounded by the El Niño phenomenon, constitute the largest humanitarian emergency that Malawi has ever confronted, with 6.5 million people in need of humanitarian aid. The country also hosts more than 52,678 persons of concern (PoC) and refugees, primarily from the Democratic Republic of Congo, Burundi, Rwanda and Mozambique, the majority of whom are dependent on humanitarian assistance to meet their daily food needs.

“Refugees and displaced people often live in temporary shelters or camps, which are particularly vulnerable to climate events. Many of these areas also face resource scarcity, and the added stress of climate change can lead to severe shortages, resulting in increasing tension and conflict within refugee communities,” says the UNHCR’s Mojisola Terry.

A key component of African Risk Capacity (ARC) Group’s response in Malawi has been its partnership with the United Nations High Commissioner for Refugees (UNHCR) through the Replica Programme, which allows humanitarian organisations to replicate government-level climate risk management policies, thereby extending insurance coverage to refugee populations and internally displaced persons who are typically left out of national insurance schemes.

Through the Replica programme, the UNHCR took out a policy on behalf of the refugees in the country that allowed them to receive a $400,000 payout. This includes Dzaleka, a refugee camp in the Dowa district of Malawi (about 40km away from the capital, Lilongwe), which receives a monthly average of 300 new arrivals (62% are from the DRC, 19% from Burundi, 7% from Rwanda, and 2% from other nationalities) – 45% of the PoCs are women and 48% are children. The camp was initially established to host between 10,000 to 12,000 PoCs but now hosts over 52,000 individuals. Of the total PoC population, 21,530 have refugee status, 30,910 are asylum seekers, with 238 others are of concern.

Residents like Ndayisenga Goodance (42) say they are grateful for the timely disbursement of funds. “The money will help us with inputs for maize, and I am going to save to have enough for inputs from the subsequent payments,” she says.

Nsabimana Janine (40) explains how the funds have allowed her to purchase fertiliser for her rented 0.8-hectare plot, where she grows maize and beans.

Jean Rwasa (29), who grows tomatoes on 0.4 hectares of land, plans to use the money to buy 20 kg of fertiliser, which sells at MK2,500 per kg.

These individual stories highlight the tangible impact of the anticipatory insurance model, which aims to provide emergency relief and empower individuals and communities to rebuild their livelihoods.

Payout process: Ensuring access and transparency

Centenary Bank was contracted to oversee the payout process, which included:

1. Beneficiaries being informed of the day they needed to come to the bank to collect their funds.
2. Once at the bank, they had to produce their refugee ID to be verified.

3. The beneficiaries then received a voucher to collect their cash.

4. Three booths were dedicated to this.

This structured process ensured that the funds reached those most in need without delays or mismanagement.

The long-term impact of climate change on Malawi 

Malawi, which occupies the southern part of the East African Rift Valley, is particularly prone to adverse climate disasters. Droughts and floods, the most severe of these hazards, have increased in frequency, intensity, and magnitude over the past twenty years, with dire consequences on food and water security, water quality, energy resources, and the livelihoods of the most rural communities.

These climate impacts date back to the late 1940s. In 1991/92, 6.1 million people were affected by droughts, and according to the World Bank, from 1979 to 2008, 21.7 million were adversely affected by natural disasters, with 2,596 livelihoods lost.

In 2015, Malawi was hit by a once-in-500-year flood, which impacted more than 1.1 million people. This was followed by a devastating drought that left over 6.5 million people without food during the 2016/17 season.

Malawi signed up as an ARC member state in 2015 to try and address the impacts of the flood and subsequent droughts. African Risk Capacity Limited (ARC Ltd.) worked closely with government representatives and other stakeholders to ensure the parametric model was tailored to the country’s specific vulnerabilities. Using AfricaRisk View to monitor weather patterns and agricultural impacts, the insurance product was designed to trigger payouts when indicators reached thresholds that signalled potential disaster.

From November 2023 to April 2024, the country experienced less than 20% of its typical rainfall. Africa RiskView, ARC’s early warning software, recorded that approximately 4.7 million Malawians were directly affected by the drought conditions.

In March 2024, the government of Malawi declared a national state of disaster, and in April 2024, ARC Ltd.’s parametric insurance model was activated as the dry spells reached the threshold. This anticipatory insurance model allows for faster disbursement of funds and ensures that affected countries can implement pre-planned responses without waiting for lengthy damage assessments.

The Republic of Malawi received a $11.2 million payout, which was allocated to over 235,000 households in the Lower Shire and Southern regions where crop failures were the worst. Additionally, cash transfers were provided to approximately 118,000 households in the Central region.

The African Development Bank, which has signed a Memorandum of Understanding with ARC. to cooperate in preparing, developing, and implementing projects and programmes in climate change and risk resilience in member countries, financed the insurance payment through its African Development Fund and Africa Disaster Risk Financing (ADRiFi) Programme Multi-Donor Trust Fund. Since its establishment in 2019, the ADRiFi programme has significantly contributed to the financial protection of over six million people across the continent, invested more than $100 million, and supported 16 African countries to access sovereign insurance and financial protection against climate hazards.

Building climate resilience long-term

ARC Ltd. provides parametric insurance services to AU Member States and farmer organisations, employing innovative financing mechanisms to pool disaster-related risk across Africa and transferring it to international risk markets. “Our parametric insurance model was designed to address climate-induced shocks,” explains CEO Lesley Ndlovu. “Unlike traditional insurance models, which only provide payouts based on verified damages after an event, parametric insurance is triggered by specific, pre-agreed conditions, such as rainfall deficits or temperature anomalies.”

While ARC Ltd.’s immediate focus in Malawi has been to provide relief in the aftermath of the 2023/24 drought, the longer-term goal is to help the country build resilience against future climate shocks. Its ongoing food security concerns have underscored the importance of timely, targeted financial interventions in responding to climate-induced disasters.

By using anticipatory insurance models, ARC Ltd. is helping countries like Malawi plan for and respond to disasters in a way that minimises economic disruption and protects vulnerable populations. This approach requires ongoing collaboration between governments and humanitarian organisations to expand coverage to more vulnerable communities and to ensure that payout funds are used effectively.

**Ends**

For more information about The African Risk Capacity Limited (ARC Ltd), or to arrange an interview, please contact Sonnette at sonnette@bigambitions.co.za.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, the Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

Lesley was selected for his leadership of the innovative hybrid mutual insurer and financial affiliate of the ARC Group, which has been pioneering parametric insurance in Africa to build climate resilience.

Over the past decade, amid escalating climate-driven disasters across Africa, ARC Ltd. has disbursed $230 million in claims payouts to member states and provided coverage to 50 million people.

Under Ndlovu’s leadership, ARC Ltd. has expanded its network of members, donors and partners, increasing access to affordable insurance across the continent and extending protection to marginalised communities, such as refugees, for the first time.

According to TIME, the selection process was influenced by the prominent 2024 theme of climate finance and a focus on candidates demonstrating measurable, scalable achievements and recent action. Ndlovu was recognised in the ‘Defenders’ category, highlighting his leadership in protecting vulnerable African communities from climate risks.

His membership on the Board of Directors of the UN Principles for Sustainable Insurance and his involvement with the Glasgow Financial Alliance for Net Zero further reflects his commitment to sustainable practices and addressing climate change.

Says Ndlovu: “It is an honour to be included in the prestigious TIME100 Climate list of changemakers. This recognition underscores the critical role of innovative financial solutions, like parametric insurance, in protecting lives and livelihoods from the escalating impacts of climate change. We remain committed to building climate resilience, and our goal is to expand coverage to all 55 African Union States by 2034.”

See Lesley Ndlovu’s #TIME100Climate list profile here: https://time.com/7172504/lesley-ndlovu/

For the full list click here: https://time.com/time100-climate 

**Ends**

For more information about The African Risk Capacity Limited (ARC Ltd), or to arrange an interview, please contact Sonnette at sonnette@bigambitions.co.za.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, the Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

Luis Alton, Senior Financial Sector Specialist at the World Bank’s Disaster Risk Financing and Insurance Program highlighted the inefficiencies in current resource allocation for mitigating climate shocks. “While many countries have multiple instruments to help them with this, they’re not joined up strategically, which can lead to inefficiencies,” he said. “For example, where insurance should be used for extreme events, it is used to cover less extreme events instead.”

The retreat also addressed the rising number of displaced persons due to climate events. In 2010, there were 44 million globally displaced persons worldwide, including those internally displaced, refugees, those who have crossed borders, and those looking for protection. In 2024, this number has spiked to 120 million people.

“Many of these refugees come from areas where there are other conflicts, like war and violence. They also live in climate disaster risk areas and will be further displaced as extreme weather events increase. So, the numbers are only going to rise. It’s clear that the models in place are not enough,” said UNHCR Climate Insurance Lead and Strategic Risk Advisor Mojisola Terry.

“We need to disrupt the way institutions respond to, utilise resources, and fund their climate interventions,” Terry added, explaining that it should no longer be a debate. “We want to demonstrate that investing in risk mitigation will lead to more resilient communities, better assistance, better targeting, and hopefully address the humanitarian landscape.”

Phil Stevens, International Finance Director at the UK Foreign Commonwealth and Development Office (FCDO), who also serves on the ARC Group Board, referred to key climate discussions, including those at COP29 this year, saying: “ARC Ltd. is going to be instrumental to these conversations, as well as the broader conversations we’re hearing around the Bridgetown 3.0 initiative and the call to action from President Biden, to name a few.”

The Bridgetown initiative calls for urgent action to reform the international financial architecture, while President Joe Biden has called on global leaders to catalyse climate action through the Major Economies Forum on Energy and Climate.

Increasing impact through innovation

The ARC Group’s innovative approach to climate resilience was highlighted by Group Governing Board Chairperson Dr Mothae Anthony Maruping. He explained that, in the 12 years of its existence, the group has expanded its products beyond drought to include outbreaks and epidemics, tropical cyclones and floods, and brought humanitarian donor partners on board. “We will keep challenging ourselves to come up with new and creative solutions by actively listening and engaging fully in new dialogues that will define our path,” he said.

Terry noted that climate resilience must be looked at holistically. “That’s why the partnership between the UNHCR and ARC Ltd. to increase protection to those who need it the most through the Replica programme is logical and timely,” she explained. The Replica programme extends ARC Ltd.’s parametric insurance to humanitarian organisations. Through the programme, humanitarian organisations can take out insurance on behalf of a country against climate-induced threats and disease outbreaks.

The UNHCR took out a modest Replica premium for drought insurance in the central region of Malawi for 2024. In April, the release of funds was triggered, resulting in a payout which assisted 20,000 people – 60% of Malawi’s refugee community.

“When it comes to implementing these resources, we always look at how we can reach out to the most vulnerable,” said Doshanie Kadokera, Malawi Government coordinator. Other partners and donors have also been inspired. “Humanity Insure has agreed to supplement the premium subsidy for Malawi for 2024/25,” Terry explained.

The UK, through FCDO, has been a donor partner of ARC Ltd. since its inception in 2014. This long-term commitment demonstrates FCDO’s support for the company’s work on the continent. “Since then, we have provided coverage to 130 million African people,” shared Stevens.

Continuous improvement for climate resilience

Terry pointed out that no perfect climate resilience model exists, only opportunities to improve. “The UNHCR is committed to continuing to work with ARC Ltd., as well as other partners, to make sure we have access to the best possible data so we can plan and prepare better in the event of disasters.”

Kadokera added that there is a need for ownership among governments when it comes to building climate resilience in African countries. “Malawi’s risk management strategies and policies with ARC Ltd. and partners like the UNHCR, reflect our commitment to protecting our citizens and their livelihoods.”

ARC Ltd. believes in looking internally to constantly improve. “Looking ahead, it’s clear that we still have a lot of work to do. Our focus remains on three priorities: expanding coverage to all 55 African Union countries, managing capital funding and reinsurance to maintain an A- credit rating, and strengthening its team and processes for greater efficiency,” explained CEO Lesley Ndlovu.

Unified action the key

The retreat was also an opportunity to celebrate ARC Ltd.’s 10th anniversary and reflect on its achievements while charting a forward-looking strategy for sustainable climate risk management across the continent. “It was truly moving to hear from so many of our partners and members who shared their experiences and congratulatory messages. These testimonials are a testament to our shared success,” said Ndlovu. Since its inception in 2014, ARC Ltd has paid out $229.8 million in claims, provided 1.2 billion insurance coverage and protected 30 million Africans per year.

ARC Ltd. Board Chair Dr Maxwell Mkwezalamba lauded ARC Ltd.’s pivotal role within the broader ARC ecosystem. “Over the past decade, ARC Ltd. has translated visionary goals into actionable financial solutions for member states, delivering critical insurance coverage that protects them from the devastating impact of climate disasters.”

Dr Maruping emphasised the importance of continued collaboration among stakeholders to address the climate insurance gap: “We are operating in a very dynamic industry, and while we can all agree that the challenges are complex, when we stand together as a united front, there are massive opportunities for all of us.”

He accredited ARC Ltd.’s success to its partnership ethos in Africa, “whether it’s with partner governments like our own, the African Development Bank, the World Bank, or the private sector. I think ARC Ltd. is a great example of how we can modernise not only partnerships, but development finance as a whole to continue to impact people’s lives.” 

Ndlovu concluded that ARC Ltd. will continue working closely with governments, financial institutions, and technical partners to develop sustainable, scalable solutions for climate resilience.

**Ends**

For more information about The African Risk Capacity Limited (ARC Ltd), or to arrange an interview, please contact Sonnette at sonnette@bigambitions.co.za.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, the Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.

Dr Chris van Straten, a global health advisor, emphasized these rising threats at the GBTA Southern Africa Conference 2024. He noted, “Climate change is not only affecting weather patterns but also increasing health risks. For instance, warmer and wetter conditions in winter are intensifying malaria risks in Africa, and dengue fever in Asia and even Europe. Emerging diseases like mpox also pose new challenges for travellers.”

As these risks continue to evolve and escalate, understanding individual traveller profiles and vulnerabilities has become more critical than ever, says Bonnie Smith, GM of Corporate Traveller. Smith notes that this means our approach to travel risk management also needs to shift, and a human-centric approach is crucial. “With travel risks becoming increasingly complex, having detailed information about our travellers isn’t just helpful – it’s essential for their safety,” Smith explained. “However, gathering this sensitive data requires a delicate balance of trust and transparency.”

Van Straten emphasised the importance of empathy in this process: “It’s vital to build trust with your travellers and approach their personal information with care. When travellers feel supported, they’re more likely to share crucial details that can impact their safety.”

Smith elaborates on the type of information travel managers need: “As a travel manager, you want to know things like if a traveller is pregnant, if they identify as part of any minority groups, or if they have chronic health conditions. This information is crucial for tailoring risk management strategies, but it’s also highly personal and sensitive.”

For businesses grappling to get the balance right, Smith has this advice:

1. Prioritise transparency: Clearly communicate what data is being collected and why. Travellers are more willing to share when they understand how the information protects them.

2. Train for empathy: Equip travel managers with the interpersonal skills to discuss sensitive topics. The ability to approach these conversations with empathy is becoming as important as technical know-how.

3. Create two-way communication channels: Establish easy ways for travellers to update their information and express concerns. Giving travellers a voice in the process builds trust.

4. Personalise risk assessments: Use the data collected to provide tailored risk management strategies. This demonstrates a genuine commitment to each traveller’s well-being.

5. Incorporate mental health support: Recognise the psychological impact of travel, especially in high-risk situations. Offering mental health resources shows travellers that you care about their overall wellbeing, not just their physical safety.

Smith suggests a practical approach for companies dealing with sensitive data: “Always ask, ‘Is this information essential for traveller safety?’ If the answer is yes, ensure you have the systems and training in place to handle it responsibly.”

“Effective risk management isn’t just about having the right data,” she concludes. “It’s about creating an environment where travellers feel valued, understood, and protected. That’s the key to not only gathering the necessary information but also fostering a positive travel culture in these challenging times.”

**ends**

For more information about Corporate Traveller, or to interview Corporate Traveller South Africa GM Bonnie Smith, call Dorine Reinstein on 083 278 8994 or email dorine@bigambitions.co.za.

About Corporate Traveller

Corporate Traveller is a division of the Flight Centre Travel Group, dedicated to saving businesses across Southern Africa time and money. Corporate Traveller has the benefit of being part of the world’s third-largest travel retailer, leveraging its global negotiating strength. It has access to over 50 of the world’s leading airlines and deals with more than 100 000 hotels around the world to guarantee savings for clients. Corporate Traveller provides clear, consolidated reporting of all its clients’ travel activities, helping them to control travel spend and identify opportunities to save costs.

Issued by:

Big Ambitions

Dorine Reinstein

dorine@bigambitions.co.za

In a bold move underscoring South Africa’s fight against climate change, President Cyril Ramaphosa has signed the Climate Change Bill into law. Passed on 25 April 2024, this new legislation tightens the reins on greenhouse gas emissions, including those from corporate travel.

Bonnie Smith, GM of Corporate Traveller, offers insight into the Bill’s impact: “This legislation marks a turning point for business travel in South Africa. Companies must now consider their travel practices as part of their broader Environmental, Social, and Governance strategies.”

Understanding the Climate Change Bill

The Climate Change Bill is set to shake up business operations in South Africa. Here’s what companies need to know:

First, the Bill establishes a framework for managing climate change nationwide, with climate forums at provincial and local levels. If your business operates in multiple regions, engaging with these forums could become necessary.

Next, and critically for businesses, the Bill tightens how South Africa tracks and reports greenhouse gas emissions. Companies, especially large ones, will face stricter reporting requirements. The government will use this data to set emission targets across different sectors.

Big emitters will be assigned carbon budgets—essentially caps on how much greenhouse gas they can release. This could directly impact operations, including travel practices.

In short, businesses need to start thinking about their carbon footprint now. Evaluate every aspect of your operations, including business travel, and look for ways to cut emissions. Those who act early to go green may gain a competitive edge as these new regulations take hold.

Smith stresses that business trips aren’t going away—they’re just becoming smarter and more sustainable. “We’re witnessing a paradigm shift,” she says. “Companies are now asking not only about travel costs but also about its environmental impact. They want to know how to reduce their carbon footprint without compromising business goals.”

How travel management companies are adapting

As businesses navigate these new regulations, Travel Management Companies (TMCs) are stepping up to meet evolving client needs. “We’re no longer just booking flights and hotels,” says Smith. “TMCs are now strategic partners, helping companies fine-tune their travel plans to cut emissions and stay compliant with the new laws.”

TMCs are rolling out a range of tools and services to promote sustainable travel. For instance, FCM has introduced carbon reporting, enabling companies to track their travel-related carbon footprint. This kind of transparency is vital for businesses aiming to manage their environmental impact.

“These reports give a detailed look at the emissions generated by corporate travel, tracking everything from flights to accommodations. With this data, companies can pinpoint where they can cut back on emissions. It helps businesses make smarter travel decisions, set and track sustainability goals, and align with CSR initiatives,” says Smith.

TMCs are also aiding clients by identifying and promoting greener travel options, such as lower-emission transportation and eco-friendly accommodations. “By clearly presenting these choices during the booking process, we empower travellers to make informed decisions,” Smith notes.

Another key area of support is carbon offsetting. While offsetting doesn’t directly cut emissions, it’s a valuable piece of a broader strategy to manage travel-related carbon footprints.

“We’ve partnered with South Pole, a leading expert in climate action, to offer carbon offsetting to our clients,” explains Smith. “We calculate travel emissions, then clients can choose from 12 global projects to offset their impact. These range from forest conservation to renewable energy initiatives. It’s a straightforward way for companies to support environmental projects and meet their sustainability goals, while still conducting necessary business travel.”

Perhaps the most impactful support TMCs provide is in policy development. “We’re helping companies draft travel policies that align with the new regulations,” Smith explains. “This could mean setting criteria for when travel is necessary, prioritising lower-emission options, or incorporating carbon budgets into travel planning.”

The business case for sustainable travel

While the new regulations might seem overwhelming, there’s a silver lining for businesses. “Sustainable travel practices often lead to cost savings,” Smith points out. “By optimising travel routes, cutting unnecessary trips, and choosing more efficient transportation, companies can reduce both their carbon footprint and travel expenses.”

Additionally, adopting sustainable travel can boost a company’s reputation, opening doors to new opportunities in an increasingly eco-conscious market. This aligns perfectly with the Bill’s goal of capitalising on the global shift towards a green economy.

However, the Bill’s success hinges on overcoming significant challenges. The government will need to implement strong enforcement mechanisms, including meaningful penalties for companies that exceed their carbon budgets.

The era of unrestricted business travel with little regard for environmental impact is over. What will emerge instead is a more thoughtful, efficient, and sustainable approach to corporate travel.

“This law is just the start,” Smith concludes. “We anticipate more regulations and incentives promoting sustainable business practices in the coming years. Companies that adapt now will be ahead of the curve.”

**ends**

For more information about Corporate Traveller, or to interview Corporate Traveller South Africa GM Bonnie Smith, call Dorine Reinstein on 083 278 8994 or email dorine@bigambitions.co.za.

About Corporate Traveller

Corporate Traveller is a division of the Flight Centre Travel Group, dedicated to saving businesses across Southern Africa time and money. Corporate Traveller has the benefit of being part of the world’s third-largest travel retailer, leveraging its global negotiating strength. It has access to over 50 of the world’s leading airlines and deals with more than 100 000 hotels around the world to guarantee savings for clients. Corporate Traveller provides clear, consolidated reporting of all its clients’ travel activities, helping them to control travel spend and identify opportunities to save costs.

Issued by:

Big Ambitions

Dorine Reinstein

dorine@bigambitions.co.za

JOHANNESBURG – ARC Ltd. celebrates several milestones in its newly released 2023 integrated annual report. The company commemorates its 10^th anniversary and outlines a decade of impact, which saw it paying out over $170 million in claims and underwriting a record $25 million in premiums for Pool 10A – the highest since its inception.

“From covering 12.9 million people in 2014, we protected 26.4 million in 2023. We have also expanded our footprint to 39 member states,” says ARC Ltd. CEO Lesley Ndlovu. “We are pleased that behind the figures are communities that have benefited. We are also encouraged to see an increase in the number of countries utilising insurance as part of their disaster risk financing matrix.”

The company returned to profitability in 2023, achieving a net profit of $13 million from a $29 million loss over the last two years. This was largely due to expansion and diversification efforts across Africa.

ARC Ltd.’s gross written premiums amounted to $56.1 million; gross earned premiums were $46.8 million, and it achieved a net income of $14.2 million. A notable growth driver was the expansion of ARC Ltd.’s non-sovereign business segment, which saw gross written premiums amounting to $14.78 million. This growth can be attributed to the addition of policies such as:

• The World Bank Malawi social protection policy with a gross premium of $10.25 million for a two-year policy.
• The World Bank Republic of Djibouti’s protection policy with a gross premium of $2 million for a five-year policy.
• Drive Pool 9 endorsement policies, with a gross premium of $1.45 million.

ARC Ltd. strengthened strategic partnerships throughout 2023, increasing its capacity to support African nations in managing climate and health risks. A key aspect of this expansion has been securing, renewing and enhancing critical insurance policies including:

• The World Food Programme-Madagascar policy, renewed for two seasons. ARC Ltd. retained a 95% share.
• The renewal of the One Acre Fund Kenya policy. ARC Ltd.’s share increased from 4% to 10%.

These policies ensure that vital resources remain available to support Africa’s agricultural sector and food security, particularly in times of climate-induced crises. At the same time, donor partners play a pivotal role in ARC Ltd.’s business model, enabling the company to cover more vulnerable communities, and in 2023, it welcomed the US Government in an ambitious partnership to expand parametric insurance in Africa and protect smallholder famers.

Customisation and diversification

ARC Ltd.’s initial focus was drought insurance, one of the most prevalent hazards in Africa. Over the past decade, it has expanded its coverage to include both crops and livestock, and additional perils like floods, outbreaks and epidemics, and tropical cyclones.

“Pioneering innovative products and risk transfer solutions tailored to individual countries’ changing needs are central to our activities,” explains ARC Ltd.’s COO Ange Chitate. “With the increasing severity and frequency of natural disasters, this phenomenon highlights the importance of having multiple financial instruments to complement the insurance we provide.”

In 2023, the company introduced several pioneering products, including Africa’s first flood risk insurance. This product, developed in collaboration with JBA Risk Management, offers customised flood risk policies for six countries – Madagascar, Mozambique, Malawi, Côte d’Ivoire, Ghana, and Togo – enabling these nations to better manage and respond to flood risks.

A multi-year, multi-peril insurance product was also launched in Djibouti, covering the country’s primary risks of drought and excess rainfall. This groundbreaking five-year agreement is the first of its kind on the continent, providing ongoing capacity building and disaster risk insurance.

ARC Ltd.’s focus on innovative insurance solutions extended to social protection, with the development of a novel insurance mechanism for Malawi. This shock-responsive policy is triggered when rainfall levels predict drought, releasing funds for cash transfers to assist additional beneficiaries.

In terms of corporate social responsibility, ARC Ltd. pioneered the first-ever postgraduate Africa Scholarship Programme in partnership with Milliman Inc. The programme will broaden the talent pool in Africa, particularly in studies relating to mitigating the impact of climate change. It is also assisting students who need help to afford postgraduate studies. Four scholarships were offered covering up to three years of full-time postgraduate study at select universities on the continent. Another cohort will be introduced in 2024.

International recognition

ARC Ltd. continues to be recognised as a leader in ESG, having been awarded the global insurance industry’s best scores for the third consecutive year by the international ESG research and evaluation authority, Sustainalytics. The company improved from low-risk last year at 10.2 to negligible risk this year at 5.7. ARC Ltd. also retained its top position in the diversified insurance sector, with the lowest exposure score among its peers at 24 and the strongest management score at 80.3.

US credit rating agency Fitch also upgraded ARC Ltd.’s outlook to stable due to the progress on its development goals, product diversification and strong donor support. The company received an IFS Rating of “A-” and a Long-Term Issuer Default Rating (IDR) of “BBB+”. Fitch noted its excellent claims payout track record and “extremely strong” capital position.

Building on the momentum

ARC Ltd. has identified priority areas for 2024 with growth, innovation and increased impact top of the list. The company plans to expand its climate and health insurance solutions across all 55 African Union member states by 2034, providing each nation with customised products that address their unique risks.

According to Ndlovu, reaching this level of scale and diversification will enable ARC Ltd. to become financially self-sufficient, fully deliver on its mandate from the African Union, and optimise its balance sheet.

Next is capital funding and reinsurance. “As the global reinsurance market hardens, costs rise while capacity shrinks. Keeping reinsurance expenses in check will be crucial for maintaining affordable premiums for member states,” Ndlovu says.

Third is strengthening ARC Ltd.’s people, processes and overall performance, he explains. The intention is to continue expanding teams to bring in more skills and talent to meet changing climate risks and client needs. “At the same time, we will automate and streamline processes to improve efficiency as our business volumes increase.”

Lastly, the company plans to increase its focus on communication, engagement and advocacy. There are still many opportunities to tell the ARC Ltd. story on a global stage and draw greater awareness to its mission.

ARC Ltd. is geared toward continued success by building on its 2023 achievements. “With concerted effort across these priority areas, we can take our vision to the next level and create an even more substantial impact for African citizens. We have built strong momentum, and now is the time to accelerate,” Ndlovu concludes.

Read and download the full report here.

**Ends**

For more information about The African Risk Capacity Limited (ARC Ltd), or to arrange an interview, please contact Sonnette at sonnette@bigambitions.co.za.

About ARC Ltd.

The African Risk Capacity Limited (ARC Ltd.) is a financial affiliate of the African Risk Capacity (ARC) Group, a specialised agency of the African Union (AU), an initiative designed to improve current responses to climate-related food security emergencies.

ARC Ltd. is a mutual insurance facility comprised of its members, which have included Kenya, Mauritania, Niger, Senegal, Mali, Malawi, the Gambia, Burkina Faso, Chad, Zimbabwe, Togo, Madagascar, and Zambia.

The membership also includes its capital contributors who have provided premium subsidies, including USAID, FCDO, SDC, KFW/BMZ, IFAD, AFDB, WFP and STARTNETWORK.