Sinokubonga Nkala
Sukulwenkosi Dube-Matutu, Sukulwenkosi.dube@chronicle.co.zw
GOVERNMENT, in partnership with the insurance industry, has launched an education programme aimed at promoting agriculture insurance as a vital risk management tool to safeguard farmers against financial losses.
This initiative aligns with Vision 2030 goal of achieving a robust and sustainable agricultural sector.
The devastating effects of the 2023/24 El Niño-induced drought, which caused significant crop and livestock losses, underscored the need for better climate risk management in the agricultural sector. Despite ongoing Government interventions, farmers remain highly vulnerable to weather-related financial shocks.
The Government’s strategic plan for the 2024/25 agricultural summer plan identifies insurance as a key factor for a successful season.
Addressing farmers and other stakeholders recently during an agriculture insurance education programme in Matabeleland South Province, Mr Abraham Mashumba, director for business development in the Ministry of Lands Agriculture, Fisheries, Water and Rural Development’s director for business development, stressed the importance of building farmer confidence in insurance
“The rationale behind this insurance education programme is to enlighten farmers on agriculture insurance and the role it plays. Agriculture insurance has been happening from way back being practiced by the commercial farmers but they never shared this information with the communal farmers,” he said.
“With just paying a small amount a farmer can cover their beast worth US$400 for the next 12 months. Whether the beast is stolen, falls ill, or runs away the insurance company can give a farmer money that can replace that animal.”
By addressing misconceptions and knowledge gaps, Mr Mashumba said the programme aims to foster a more resilient farming community that is better equipped to tackle climate-induced challenges.
He said the Government has scrutinised and assessed the packages being offered by players from the insurance industry and ascertained their importance in developing the agricultural sector.
Mr Mashumba said safeguarding the agricultural sector through insurance is key to the attainment of Vision 2030. He said farmers should be allowed to select insurance packages of their choice after rigorous sensitisation.
“We don’t want a situation where insurance products that are being offered in Mashonaland are imposed on Matabeleland South and on that same note we don’t want what works in this region to be imposed in another area,” said Mr Mashumba.
“The purpose of this insurance education programme is to also have an appreciation of what farmers expect from insurance products. From here we will go back and sit down with our partners from the insurance industry and see how insurance products can be rolled out in different parts of the country.”
Mr Mashumba said the Government wants to come up with insurance products that are tailor-made for each region.
AFC Insurance’s senior agriculture writer, Mr Kenney Mabehla, described agricultural insurance as a critical financial tool for managing climate-related risks.
He said droughts are becoming more frequent, and insurance provides a safety net that ensures farmers can recover and plant again.
“Insurance is coming in as one of the climate-smart agriculture interventions which are seeing being rolled out. There are some misconceptions and knowledge gaps which we seek to address such as how crop and livestock insurance works,” said Mr Mabehla.
He said a well-designed insurance programme not only enhances farmers’ resilience but also improves their access to finance and high-quality farming inputs.
The available insurance solutions include multi-peril crop insurance, covering perils such as hail, flood, fire, pests, disease, theft, impact, and loss in transit.
Other insurance schemes include index insurance policies that incorporate weather index insurance and area yield index insurance, covering production-related risks like drought, excess rainfall, pests and diseases.
Livestock insurance, which caters for death due to accidental, violent, external and visible means as well as illness or disease is another scheme that farmers can utilise.
Farming insurance is an important tool in climate risk management that can help ensure smallholders are able to plant again the following season in the event that their crops fail.
A well-designed insurance programme can help improve farmers’ resilience, access to finance and high-quality inputs.
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