MFW4A Side-Event at the 5th World Congress on Agricultural and Rural Finance

23.11.2016, Dakar, Senegal

Managing Climate Risks in Africa’s Agricultural Sector through Insurance

Agriculture in Africa is particularly vulnerable to climate change related risks. With continuing changes in rainfall patterns and shifting temperature zones, climate change is expected to significantly affect agricultural production, which could be detrimental to the region's food security, economic growth and the livelihoods of the poor. The G7 Summit in 2015 (Elmau, Germany) acknowledged the importance of policies that support adaptation to global warming and associated extreme climatic situations (e.g. floods, droughts) and adopted launched the Initiative on Climate Risk Insurance (InsuResilience). The InsuResilience initiative aims to increase access to direct or indirect insurance coverage against the impacts of climate change for up to 400 million of the most vulnerable people in developing countries by 2020. The World Congress on Rural and Agricultural Finance provides an opportunity to create greater awareness of this global initiative.

MFW4A will contribute to the discussions by convening a side-event on insurance as a tool for climate risk management in African agriculture.Participants to this side event will have the opportunity to hear and debate on the various ways of building climate resilience into agriculture projects and programs in order to accelerate the transformation of the sector.

Discussion points will include:

  • How are climate risk reduction and climate risk insurance linked?;
  • What are the main challenges in designing and implementing climate risk management and adaptation frameworks?;
  • As climate change impacts financial and social resilience at all levels, what should a comprehensive risk transfer strategy look like?;
  • What are the roles of governments and the insurance sector in analyzing and insuring risk, in particular for low-income and rural households?;
  • What insurance products are suitable for government, business and individual households?; and
  • How can global initiatives such as the G7 InsuResilience Initiative be harnessed to: to scale up climate risk insurance coverage in Africa?.

For additional details, please refer to the Draft Concept Note.

For more information on the side event, please contact Mr. Hugues Kamewe (h.kamewe-tsafack[a]afdb.org).