MFW4A convened a side-event on the margins of the AFRACA World Congress on Rural & Agricultural Finance in Dakar

Jan 30, 2017

“Managing Climate Risks in Africa’s Agriculture Sector through Insurance”

Considering the growing momentum around climate change issues and the nexus with agriculture, MFW4A convened a side-event on 23rd November 2016, on the sidelines of the AFRACA World Congress, which focused on insurance as a tool for climate risk management in African agriculture. 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. This side-event provided a key opportunity to showcase promising national and regional experiences and share information on continental and international initiatives. The Compagnie nationale d'assurance agricole du Sénégal (CNAAS), a public scheme in Senegal and Planet Guarantee (in Francophone West Africa) are successfully extending weather-index linked agricultural insurance. Furthermore, the Platform for Agricultural Risk Management (PARM1]) hosted by IFAD presented a holistic methodology to manage climate and other type of risks impacting the agricultural sector. Through advocacy and policy advice, PARM's objective is to make risk management an integral part of policy planning and implementation in the agricultural sector. Improved risk management is critical to boosting agriculture growth and enhancing food security. As a continental mechanism established by the African Union (AU), the African Risk Capacity (ARC) provides an additional layer of response. It is helping African countries improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters, therefore ensuring food security for vulnerable populations. The G7 Initiative on Climate Risk Insurance (InsuResilience2) is a testimony to the importance that the international community gives to policies that support adaptation to global warming and associated extreme climatic situations (e.g. floods, droughts). 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. Participants encouraged the MFW4A Secretariat to continue as facilitator of agricultural insurance in Africa by providing a platform for aggregating information and brokering projects. Going forward, MFW4A aims to work with participants to this side event in establishing a community of practice on agricultural insurance in Africa. Due to its work in agricultural finance, the MFW4A Secretariat was invited to join the Insurance for Farmers (IFF), a global coalition of players committed to enabling affordable insurance to smallholders. ------------------------------------------------------------------------------------------------------------------------------- [1] PARM is multi-donor partnership between the European Commission (EC), the French Development Agency (AFD), the Italian Development Cooperation (DGCS), and the International Fund for Agricultural Development (IFAD), and the New Partnership for Africa's Development (NEPAD). [2] Launched at the G7 Summit in 2015 (Elmau, Germany)