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In a podcast , NPR's Planet Money (The Economy Explained), listeners are taken on a journey in Africa to meet with the continent's farmers and learn about common risks they face in their crop productions - "Farmers don't grow enough of the things they're best at growing." Episode 723 also focuses on index insurance and discusses how access to finance can affect the farmers' investment choice.
The Government of Kenya has launched " Kenya Livestock Insurance Program (KLIP)" that will insure 100,000 household against drought by 2019. The program, which is an initiative of the National Government in partnership with local governments and private sector insurance companies, has an objective of reducing the risks of livestock mortality emanating from drought and of building the resilience of vulnerable pastoralists in arid and semi-arid lands (ASALs ) of Kenya through satellite-based index insurance. Under this program, "t he State Department of Livestock purchases premiums on behalf of...
In an address to an audience at an Adaptation Futures 2016 plenary session in Rotterdam, UN Special Advocate for Inclusive Finance for Development, Her Majesty Queen Máxima of the Netherlands said financial services that are inclusive would enhance the vulnerable populations’ ability to escape poverty. Financial inclusion is particularly important for smallholder farmers. Without access to credit, they could become caught up in activities with declining productivity and incomes. Along with savings and remittances, insurance is an important financial instrument that helps smallholder farmers...
In a blog post published on the World Bank Group's Voices and on Huffington Post, Gloria Grandolini, Senior Director of Finance & Markets Global Practice at the World Bank Group, wrote that market-based instruments – such as insurance ― can act as shock absorbers in case of natural disaster, helping countries around the world avoid the worst of a crisis’ financial impact. Ms. Grandolini also lists five reasons why investing in pre-crisis financial risk management can ease post-disaster recovery needs. As part of the World Bank Group’s Finance & Markets Global Practice, the Global...
The Government of Zambia has called on insurance firms to develop affordable weather index insurance products in the wake of climate change as they are part of the risk management mechanisms for crop protection among small-scale farmers, Zambia Daily Mail has reported. Minister of Agriculture and Livestock Given Lubinda said the effects of climate change are real, and Zambia is not excluded from the impact, evidenced by the negative impact of the El Niño phenomenon the country experiened during the 2015/16 farming season. “Therefore, farmers’ access to risk mitigation tools such as insurance...
Representatives of agricultural financing agencies in Africa are expected in Kigali, Rwanda, next month to come up with solutions to farmers’ financing challenges, KT Press of Rwanda reports. At the African Rural and Agricultural Credit Association-AFRACA conference on best practices in rural agriculture finance, experts will discuss “fast-tracking replicability of functional models in rural and agricultural Finance.” The conference will also discuss weather index insurance, which was recently introduced in Rwanda, the report adds. Headquartered in Nairobi, AFRACA is a regional association of...
In June 2016, over 60 participants gathered at the College of insurance in Nairobi to discuss best practices and share their knowledge and expertise on index insurance, particularly livestock insurance and agriculture insurance. The discussions were quite timely, as the Government of Kenya recently allocated US$6 million for crop and livestock insurance for smallholder producers for next year, as one of the ‘key government flagship projects to drive the transformative agenda’. This is a five-fold increase in budget from the previous years with strong allocations toward data systems and...
Plans are underway to draw up an insurance strategy on agriculture in Tanzania, AllAfrica reports. According to the country's Commissioner of Insurance, a meeting of insurance stakeholders was recently conducted to discuss the strategy. It is hoped that by having the strategy, agriculture will be stimulated, the report adds. Agriculture is Tanzania's economy mainstay, accounting for nearly 30% of GDP, and 67% of the workforce was employed in the sector in 2014. Most Tanzanian farmers are smallholders; few families cultivate more than two hectares. Around 20% of farmers use ox-ploughs, 10% use...
Through the partnership with AXA Corporate Solutions on parametric weather insurance, the World bank helps in fight against severe weather and climate change’s impact on developing regions, writes the BorneoPost in Malaysia. AXA works with the World Bank Group’s GIIF to provide innovative and affordable parametric and weather-index linked insurance protection for the world’s most vulnerable, developing regions. To this end, AXA aims to leverage increasing volumes of satellite and weather data, in order to get the best possible views of drought, flood, and other weather risks that affect crop...
Kenya's Standard Media interviewed experts and officials who participated at the "Operationalizing IndexInsurance in Kenya" training co-hosted by the World Bank, the Association of Kenyan Insurers, and the Africa Insurance Organization from June 8 -10, 2016. The event brought together the Kenyan government, the private sector, and members of the East African Insurance Market to discuss issues on products, innovations, and outreach strategies in the field of index insurance. "For the programme to succeed, key stakeholders like Ministry of Agriculture, farmers, insurers, Insurance Regulatory...
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