GIIF Program One-pager 2019: Providing Access to Finance to Help Smallholder Farmers, Micro-entrepreneurs and Micro-finance Institutions

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The linkage between agriculture and climate change is undeniable. Any change in the climate has significant effects on crop yields and livestock, which intensifies the agriculture sector’s vulnerability to weather and disaster risks. More frequent extreme weather events and natural disasters distress the poor and the vulnerable most heavily and, as a result, agricultural and index-based insurance products have increasingly been regarded as significant tools for smallholder farmers to protect themselves from financial losses. As we know, insurance normally provides valuable access to credit and finance, allowing farmers and entrepreneurs to repay loans and secure working capital after their crops and livestock have experienced a shock. To many victims of such shocks, insurance also reassures food security and the means to build resilience against future risks.

For these reasons, the role of the Global Index Insurance Facility (GIIF) has become more important and relevant than ever. The GIIF program supports our clients and stakeholders in the development of diversified, inclusive, and stable agricultural and index-based insurance markets in Sub-Saharan Africa, Latin America, Asia Pacific and the Caribbean regions while providing innovative financial solutions that help the beneficiaries combat and mitigate climate risks. With the combination of technical and financial resources along with knowledge transfer and educational tools, to date, we have issued more than 4.6 million contracts for farmers and micro-entrepreneurs, equivalent to $US750 million in inputs or financing supporting 23 million people in those regions. Over the past few years, the GIIF program has also played a greater role in closing the knowledge gap by providing insurance professionals with the technical capacity to develop sustainable and profitable agriculture insurance products. Our knowledge activities, including technical workshops in Ghana, Indonesia, Nigeria, Senegal, South Africa, SriLanka, and Ukraine, have helped more than 400 industry professionals globally understand and adhere to best practices. We also launched the world’s first eLearning modules on agriculture and index insurance to increase public awareness and encourage learning on these vital subject matters.

A snapshot of our past and future projects, including GIIF’s roles in outreach and communications efforts, is included in this report which was prepared collaboratively by the GIIF team across the globe. With an eye on sustainable development of agricultural and index insurance markets, GIIF is thankful for the great deal of enthusiasm within the World Bank Group, from the private sector, international development organizations, and academic partners. Together, we work to ensure that smallholder farmers and micro-entrepreneurs continue to have access to finance and credit that will prevent them from falling back into the cycle of poverty. Most importantly, we are grateful for the continued support from our donors including the African, Caribbean and Pacific Group of States (ACP) Secretariat/the European Union, the Governments of Germany, Japan and the Netherlands. Without their commitment and dedication to this field, GIIF’s work of promoting resilience would not have been possible.