UK PM to spend aid money on insurance against disasters in Africa
Theresa May is planning to spend tens of millions of pounds of aid funding on buying premiums with British insurance companies to help cover the costs of natural disasters in African countries, such as severe drought.
The prime minister believes that buying up private insurance policies in the UK, in a break from more traditional forms of aid spending, could reduce the need for expensive direct humanitarian support in the future.
A senior Downing Street official said the plan was to spend £30m over four years on the initiative, after which the companies would be able to continue working directly with African countries, opening up the opportunity to make a profit.
CIFOR