Africa lags behind in agricultural insurance
African governments have been asked to stimulate new private public partnerships for more innovative financing and insurance provision which can lead to increased resilience for farmers and their households.
The latest Africa Agriculture Status Report (AASR) says that while globally agricultural insurance is a US$2 billion business, Africa accounts for less than two percent of the market.
Other economic stimulus measures suggested in the report include improving financial regulations, developing better credit-reporting processes, opening up special economic zones, supporting digital warehouse receipt systems and sharing risk with lenders through credit guarantees and matching funds.
The report points out other new opportunities to target support presented by digital technology such as satellite tracking and big data. “These can help locate new high value agri-economic zones and smarter financing and food security polices, especially in the face of climate change,” reads the report.
Rod Waddington