[AllAfrica] Africa: Crop Insurance Potential to Drive Smart Agriculture in Africa

[AllAfrica] Most farmers in Africa rely on rainfed agriculture, and their production system is most vulnerable to climate-related events.

These loss-triggering perils are responsible for the reduced food security on the continent. Therefore, it is imperative to find appropriate risk mitigation and transfer solutions to ensure uninterrupted production and processing systems.

• Farmers purchase crop insurance to protect against either the loss of their crops due to natural disasters or the loss of revenue due to declines in the prices of agricultural commodities.
• The National Bank of Commerce (NBC) in Tanzania have an Agricultural Insurance product in collaboration with Jubilee Insurance Company, aimed at protecting farmers, fishermen, and livestock keepers in the country against losses when they experience various disasters that may affect their production.

It is important to look at the entire food production and processing value chain, minimize or eliminate food leakages, and add risk transfer solutions such as crop insurance to close the loop.