COP 28: AfDBG sets aside $1bn insurance cover for African farmers

African Development Bank Group (AfDBG) has presented its planned $1billion facility to provide insurance coverage to more than 40 million farmers across the continent against severe impacts of climate change.

The facility was widely lauded by the World Food Programme (WFP), development agencies, insurance operators and the private sector at the ongoing Conference of Parties (COP28) in Dubai.

The bank’s President, Dr Akinwumi Adesina, said the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA) aims to mobilise $1 billion of concessionary financing, high-risk capital and grants to support the African insurance industry.

The Facility is designed to guard farmers and countries against catastrophic weather-related incidents and to stimulate private sector investment in agriculture by mitigating risks.

Adesina had on a sidelines said, “Over 97 per cent of farmers in Africa do not have agricultural insurance. Their only insurance is to pray.”

“We have to support farmers, not abandon them, in the face of rising frequency and intensity of extreme weather events like drought, floods and pest infestation. We need to ensure that farmers and actors along the agricultural value chain are covered by insurance at scale,” Adesina said.

The ADBG chief revealed that over 97 per cent of farmers in Africa do not have agricultural insurance, instead they’re fond of praying over everything even things that ought not to be prayed for. “Their only insurance is to pray. When they plant that it will rain. Pray when they harvest that there will no be rains or pest devastation and pray when they market their crops that prices will not collapse.”

“The eyes of more than 40 million smallholder farmers in Africa are on us. Let us make ACRIFA the answer to their prayers,” he implored.

He affirmed that ACRIFA will systematically support the African insurance industry to unlock financing for investments in climate-smart and green technologies.

UNI Agric Markurdi
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