Chronicle Editor
Sikhulekelani Moyo, [email protected]
ZIMBABWE’S agriculture sector faces mounting risks from climate change, pests, diseases, and extreme weather events which cost farmers millions of dollars annually threatening livelihoods and food security.
With agriculture contributing about 17 percent to the GDP and supplying 60 percent of raw materials to the manufacturing industry, the sector’s stability is crucial for the country’s economic health.
Recognising this, the Insurance and Pension Commission (Ipec) is spearheading the adoption of agricultural index insurance, a tool designed to shield farmers, particularly in drought-prone areas, from climate-related losses.
Agricultural index insurance offers a safety net for farmers by compensating them for losses linked to weather-related events such as droughts, floods, hailstorms, pests, and diseases.
This financial protection enables farmers to recover quickly and continue their operations, promoting resilience and sustainable development.
Speaking at the 2024 Journalism Mentorship Programme, AFC Insurance Company managing director, Mr Cuthbert Masukume, said there is a low uptake of agricultural insurance among small-scale farmers, with only three percent currently covered.
“This year, we have embedded about 1 000 smallholder farmers, with a target to reach 20 000 in the next farming season. Insurance provides farmers with the financial protection they need to manage risks and invest in their businesses,” he said.
“In the event of losses caused by risks such as fire, hail, droughts, floods, pests, and diseases, insurance pay-outs can help farmers to recover and continue their agricultural activities.”
Mr Masukume said insurance also provides financial security for farmers who take loans to invest in their business.
“By mitigating risks, insurance contributes to the growth and development of the agricultural sector. Insurance can help ensure food security by providing a safety net for farmers to help mitigate the impact of food shortages and price increases,” he said.
Mr Masukume said the increasing effects of climate change, including erratic weather patterns, highlight the urgent need for agricultural insurance.
Recent rains across Zimbabwe and the Southern African region, following a lengthy dry spell, have left a trail of destruction in some areas.
Mr Masukume said about 30 claims have already been filed this season by tobacco farmers whose crops were damaged by hailstorms.
Last year, 70 claims were made, signalling growing interest among farmers in understanding agricultural insurance.
“Farmers need more awareness about available packages. Unfortunately, we see more people taking funeral policies than agricultural insurance,” he said.
The United Nations Financing for Sustainable Development Report (SDR 2023) notes that between 2008 and 2018, 26 percent climate change-related losses globally affected the agriculture sector, including forestry and fisheries. — @SikhulekelaniM1
Online Reporter