Thousands of Pfumvudza/Intwasa farmers receive Crop Insurance Pay-out

Judith Phiri, Business Reporter 

FARMERS in Rushinga and Mwenezi districts have received a combined Crop Insurance pay-out from AFC Holdings of US$123 000.

AFC Holdings, partnered a consortium of insurance companies and the Government to run a pilot project on Area Yield Index Insurance for farmers who received Pfumvudza inputs in the 2021/2022 Season in Rushinga  and Mwenezi districts in Mashonaland Central and Masvingo provinces respectively.

The project was monitored and evaluated through the assistance of PULA, a technical advisor on Area Yield Index Insurance.  In a statement, AFC Holdings said the Area Yield Index Insurance compensation was based on the realised average yield of an area, not the actual yield of the insured party.

“Losses are paid if the realised yield for the area is less than the insured yield regardless of the actual yield to an individual policyholder. The inclusion of the Area Yield Index Crop Insurance in the basket of inputs for Pfumvudza/Intwasa smallholder farming beneficiaries was meant to protect the farmers from the heavy impact of climate change and unforeseen losses that often befall farmers,” read part of the statement.

Officiating at the pay-out event recently, held in Rushinga District, Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Dr John Basera said the pilot programme has been a success.

“The Pfumvudza/Intwasa inputs Insurance Pilot Programme has been a success and we look forward to rolling out the programme to all beneficiaries of the Pfumvudza/Intwasa scheme in due course. AFC Insurance Company has a major role to play in cushioning all farmers against climate related risks and we will continue to support them.”

AFC Holdings Group chief executive officer (CEO), Mr Francis Macheka said plans were underway to expand the pilot programme beyond the two districts.

“AFC Insurance company is pleased to be part of the nation’s journey towards driving food security and pushing forward Vision 2030 and we are embarking on a rapid growth programme which will see AFC Insurance Company having nationwide presence in all provinces and districts by the end of 2023, leveraging our existing branch network.  Plans are underway to expand this pilot beyond the two districts and ensure that insurance becomes an accessible product.”