Agriculture
Calls to Integrate Donor Farm Insurance into Public Systems Urge
The Reporter (Amharic) · 4 hours ago · Read the Full Story on The Reporter (Amharic)
AI SUMMARY
A new study warns that donor-funded agricultural insurance projects risk collapse after pilot phases end unless integrated into government and commercial banking systems.
- The United Nations Development Programme (UNDP) and the Gates Foundation released an agricultural finance framework study covering Ethiopia, Tanzania, and Uganda. The study included the following points:
- Donor-funded agricultural insurance projects risk disappearing after their pilot phases conclude if not integrated into regular government and commercial banking operations.
- Ethiopia is working to transition agricultural insurance from small-scale pilot projects into the national financial system.
- Standalone pilot projects must be led by domestic government and private sector actors rather than foreign consultants to ensure national ownership.
- Agricultural insurance should be linked directly to agricultural finance, disaster risk management, climate change mitigation, and land tenure issues.
- Establishing insurance desks within institutions can shift the perception of insurance from an additional cost to a risk mitigation tool.
- Government bodies should create a unified national climate data platform to bridge information gaps between banks and insurance companies.
- The primary goal of agricultural insurance is building a national financial system that enables farmers to access affordable credit and enhance production.
- Insurance has historically been bundled with loans as an added financial burden rather than effectively alleviating climate-related risks.
- For decades, agricultural insurance for smallholder farmers has been limited to standalone policies or temporary donor-supported pilot projects.
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