Insurance Industry Critical To Food Security In Africa’

The president, African Insurance Organisation(AIO), Dr. Ben Kajwang, has said.

insurance industry is critical to food security across countries on African continent. 

Speaking at the just concluded 49th Conference and Annual General Assembly(AGM) of the AIO in Algiers, Algeria earlier in the week, Kajwang, added that, insurance should be seen as an integral part of the agricultural system, quoting the 2023 Africa Insurance Pulse, as saying, agricultural insurance is a viable option for reducing agricultural production risks caused by weather events, pests and market price fluctuations. 

This is even as he said, agric insurance is critical to improving food security in Africa by providing a safety net for farmers in the event of crop failure or disaster, reducing vulnerability to climate change, increasing investment in agriculture, improving access to credit and encouraging the adoption of new technologies and practices.

In recent years, agricultural insurance has benefited from innovation in both products and processes, while appealing to African governments to provide financial support for the development of agricultural insurance markets in emerging economies. 

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To him, “ addition to premium subsidies, governments can support the sector by improving the accuracy of data on the sector, enhancing financial education or providing catastrophe reinsurance.” 

Agriculture in Africa, he stressed, has a massive social and economic footprint with more than 60 percent of the population of Africa smallholder farmers as about 23 percent of Africa’s GDP comes from agriculture. 

“Yet, Africa’s full agricultural potential remains untapped. In a recent analysis, it was determined that Africa could produce two to three times more cereals and grains, which would add 20 percent more cereals and grains to the current worldwide 2.6 billion tons of output. Similar increases may be seen in the production of horticultural crops and livestock,” he pointed out.