NEW: Zim makes progress in insurance for smallholder farmers

Online Reporter

Zimbabwe’s smallholder farmers have largely been sidelined with regards to agriculture insurance, but that could soon be a thing of the past.

The International Finance Corporation (IFC) and Zimbabwe’s insurance regulator, the Insurance and Pensions Commission (IPEC), have partnered to create a market for agricultural insurance products to protect smallholder farmers from weather-related crop damage and other shocks.

Through the partnership, IFC will assess the risks smallholder farmers face, how they are coping with those risks, and will gauge the farmers’ appetite for agricultural insurance to protect their livelihoods.

IFC will also help IPEC develop a regulatory framework and enabling environment for agricultural insurance and determine the features of insurance products appropriate for local farmers.

Said IFC country manager for Zimbabwe Mr Adamou Labara:

“IFC’s partnership with IPEC will reduce the risks for Zimbabwe’s farmers by developing the foundation of agriculture insurance in the country.”

The project will draw on the experience of the Global Index Insurance Facility (GIIF), through which IFC has supported the growth of agriculture/climate insurance markets in Cameroon, Ivory Coast, Mozambique, Nigeria, Senegal and Zambia.

“One of our key roles as the regulator is to develop the insurance sector in Zimbabwe,” said IPEC Commissioner Dr Grace Muradzikwa.

“This partnership has, therefore, come at an opportune time given that the country is prone to climate change-related risks, including extreme weather events such as drought, floods, heavy rainfall and heat waves.”