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Agriculture

Calls to Integrate Donor Farm Insurance into Public Systems Urge

The Reporter (Amharic) · 5 hours ago · Read the Full Story on The Reporter (Amharic)
Calls to Integrate Donor Farm Insurance into Public Systems Urge
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.
Read the Full Story on The Reporter (Amharic)
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