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Gibson Mhaka
THE agriculture sector, particularly crop and livestock production, face many risks, such as climate change, pests and diseases and extreme weather events which usually cost farmers in developing countries like Zimbabwe millions of dollars each year.
In February this year small-scale farmers and villagers from PBS Village, Ward 18 in Fort Rixon in Matabeleland South province lost hundreds of cattle to theileriosis better known as the January disease.
Experts say theileriosis is a tick-borne disease caused by a blood protozoan parasite, theileria.
The disease is manifested by high fever, enlarged lymph nodes, severe anemia and death in some infected animals.
The farmers were left heartbroken and described the tragedy as “the worst thing” they have ever seen in their area.
“This was a serious threat to our livelihood, and we have never experienced such a tragedy. We have suffered great losses and this is not a sign at all. The disease literally eroded all investments. We have no idea how we are going to redeem ourselves from the situation,” lamented Nkani Khoza, a farmer.
Khoza’s lament was similar to that of Bangani Masango Ward 2 Village 13 Headman under Chief Jahana who also described the tragedy as horrendous.
“I had never seen anything like that before and some families lost the entire herd to the disease. It was quite like a roller coaster with all the lows and no highs”.
Last year a Nkayi family in Matabeleland North province was left distraught after losing 21 cattle following a breakdown in communication which resulted in a dangerous grain potent being administered on them.
The cattle were given a tablet each of aluminum phosphide which is used for fumigating stored grain, seeds and tobacco among others.
In October 2021 Mr Sam Parirenyatwa, a farmer in Mashonaland Central province lost about four hectares of wheat to fire at his Danbury Farm along old Mazowe Road
Given the increasing scale and intensity of these threats to the agriculture sector brought about by climate change and other natural disasters there is no doubt that disaster risk reduction and management tools such as the agricultural index insurance can be a solution and significant promise for promoting sustainable development and resilience to farmers.
Zimbabwe’s economy is agro-based, with agriculture which is considered the lifeblood contributing about 17 percent to the GDP and about 60 percent of raw materials to the manufacturing industry.
Agriculture index insurance, which is being spearheaded in the country by the Insurance and Pension Commission (IPEC) is a blessing at the right time as it is meant to protect livestock and crop farmers particularly in drought-prone areas from climate-related losses.
According to the UN’s Financing for Sustainable Development Report (SDR 2023), between 2008 and 2018, 26 percent of the overall effects of climate change loss and damages affected the agriculture sector including agriculture, forestry and fishery.
IPEC director of insurance and micro-insurance Mrs Sibongile Siwela recently told journalists during the third session of the journalists mentorship programme organised by Ipec and National Social Security Authority (Nssa) that they introduced agriculture index-based insurance, as an instrument to help protect livestock and crop farmers from climate-related losses.
She said agriculture index-based insurance acts as a safety net when disasters do occur.
“We have seen quite a lot of enthusiasm from farmer organisations that are keen to embrace this type of insurance and farmers should take it up to guard against losses that may be incurred due to climate change-related effects and other natural disasters,” said Mrs Siwela.
It is clear from Mrs Siwela’s observation that although farming is a hugely untapped market for insurance companies, but for farmers dealing with the worsening impacts of climate change, agriculture index-based insurance can be a gamechanger.
Research has shown that despite the agricultural sector being one of the major drivers of the economy, the uptake of agricultural insurance remains subdued due to various factors such as lack of insurance products that address the needs of smallholder and subsistence farmers who are the majority in Zimbabwe following the land redistribution exercise.
Some of the reasons include mistrust in insurance services, reliance on traditional self-insurance in risk and loss management, thin profit margins in the sector particularly for small scale commercial and subsistence farmers as well as lack of knowledge on the benefits of insurance and risk management services.
Zimbabwe Commercial Farmers’ Union Matabeleland North provincial chairman, Mr Winstone Babbage, supported the initiative saying it was good for farmers particularly in drought-prone areas as they were increasingly vulnerable to the effects of climate change.
“It is going to be of great importance especially for livestock farmers in Matabeleland which is a cattle producing region. Farmers have lost a lot because of lack of viable insurance companies that are not willing to take the risk because of lack of a viable currency.
“There is no doubt that this innovative approach designed to mitigate against climate-related risks is very helpful to farmers since insured cattle can also be used as collateral to get bank loans to expand farming activities because farming is now a lucrative business,” said Mr Babbage.
According to a recent report by International Fund of Agricultural Development (IFAD), agricultural insurance can offer part of the solution, by helping to protect assets and encourage productive investments in smallholder agriculture, unlock access to credit; increase resilience of rural households and businesses, and improve food security.
Livestock specialist Mhlupheki Dube commended Ipec for introducing agriculture index-based insurance saying it was a promising tool to enhance farmers’ resilience and protect their production risks adding that there was a need to support an enabling environment for its uptake.
An A2 farmer in Umguza Mr John Sibanda also welcomed the initiative saying it was essential to the sustainability of agriculture as it will help to shield farmers and agricultural enterprises from the financial hazards of operating in a volatile and unpredictable environment.
“An insurance policy for such incidents is going to be a relief especially to us farmers as it seeks to mitigate risks that act as barriers to investments in productivity. There is no doubt that as it supports productivity growth in the agriculture sector it will take away the heartache of dealing with the situation from climate-related losses,” said Mr Sibanda.
Zimbabwe Farmers Union director Mr Paul Zakariya has also been on record saying crops and livestock insurance is the best way to protect value against eventualities like hail and lightning.
An insurance expert who preferred anonymity for professional reasons said farmers need to work with reputable insurance companies in this respect.
“Agricultural index insurance interventions require collaboration across multiple public and private sector partners.
“It is also important that seasoned insurance agents should be consulted by farmers and agricultural enterprises to assess their alternatives and determine the coverage kinds that best suit their requirements.
“Farmers should also take into account the insurance provider’s financial standing and reputation, as well as any government incentives or rebates that can assist to lower premium costs,” the expert said.
Online Reporter