Last week, we welcomed a team of experts for a feasibility study on the implementation of agricultural insurance in Burundi of Comete Engineering and ACRE Africa on behalf of the World Bank-funded Employment and Economic Transformation Project in Burundi. Currently, insurers were not considering the pilot program related to agriculture. According to IFAD (https://www.ifad.org/fr/w/eclairages/plus-forts-face-a-l-incertitude-grace-a-l-assurance-agricole) , agricultural insurance seems an obvious solution because it supports agricultural productivity, strengthens food security, relieves rural producers of unmanageable risks, and stabilizes rural economies. However, during our discussions, we were able to discuss the lengthy compensation payment procedures of traditional insurance and the moral hazard experienced by victims. We agreed on index insurance, which generally relies on “substitute” indices relating to specific risks (often climate-related) that can affect a farmer’s yield (https://www.knowledgehub.ccardesa.org/sites/default/files/ickm-documents/KP24_2020_10_V2_PolicyBrief_IndexBasedInsurance_FR.pdf). This requires the adoption of artificial intelligence and digitalization in management. Although the task may seem straightforward, investing in infrastructure and related equipment requires significant costs, as does raising awareness among stakeholders. The agricultural and insurance authorities must be actively involved in this project, which will lead to producer resilience, economic growth, and sustainable community development. #AgriculturalValueChains #CapacityDevelopKnowledgeManagement #ClimateAndEnvironment #GenderYouthSocialInclusion #RuralFinanceInsurance
