International Finance Corp., Zimbabwe Partner to Develop Agriculture Insurance to Protect Smallholder Farmers

HARARE, Zimbabwe, Feb. 16 — The International Finance Corp., a member of the World Bank Group, issued the next information launch on Feb. 15, 2022:

IFC and Zimbabwe’s insurance coverage regulator, the Insurance and Pensions Commission (IPEC), right this moment introduced a partnership to create a marketplace for agricultural insurance coverage merchandise in Zimbabwe to defend smallholder farmers from weather-related crop injury and different shocks.

Through the partnership, IFC will assess the dangers smallholder farmers face, how they’re dealing with these dangers, and can gauge the farmers’ urge for food for agricultural insurance coverage to defend their livelihoods. IFC may also assist IPEC develop a regulatory framework and enabling surroundings for agricultural insurance coverage and decide the options of insurance coverage merchandise acceptable for Zimbabwe’s farmers.

Additionally, IFC will facilitate information exchanges to assist Zimbabwe’s insurance coverage suppliers study finest practices from extra developed agri-insurance markets.

Agriculture is a major contributor to Zimbabwe’s financial system, using virtually two-thirds of the nation’s working inhabitants and contributing about eight % to GDP. However, there are at the moment no insurance coverage merchandise within the nation particularly designed to defend smallholder farmers.

“One of our key roles because the regulator is to develop the insurance coverage sector in Zimbabwe,” stated IPEC Commissioner, Grace Muradzikwa. “This partnership has, subsequently, come at an opportune time provided that the nation is inclined to local weather change-related dangers, together with excessive climate occasions similar to drought, floods, heavy rainfall and warmth waves.”

“Agriculture is central to Zimbabwe’s financial system, however it’s a dangerous endeavor that’s changing into riskier as climate patterns grow to be much less predictable,” stated Adamou Labara, IFC’s Country Manager for Zimbabwe. “IFC’s partnership with IPEC will scale back the dangers for Zimbabwe’s farmers by creating the inspiration of agriculture insurance coverage within the nation. Supporting the agribusiness sector is a vital a part of IFC’s technique to promote personal sector development throughout Africa.”

The Zimbabwe undertaking will draw on the expertise of the Global Index Insurance Facility (GIIF), via which IFC has supported the expansion of agriculture/local weather insurance coverage markets in Cameroon, Cote d’Ivoire, Mozambique, Nigeria, Senegal, Zambia, and elsewhere.

GIIF is a multi-donor program managed by the World Bank Group. It was created to handle the shortage of reasonably priced insurance coverage safety towards climate and catastrophic dangers in rising nations.

IPEC develops agricultural insurance coverage options that promote sustainable agriculture practices and profit Zimbabwe’s smallholder farmers. By rising the penetration of agriculture insurance coverage, IPEC expects the brand new program to pace up the adoption of extra resilient and sustainable agriculture practices and increase livelihoods and meals safety.

IFC’s Advisory Services packages in Zimbabwe are additionally serving to to strengthen the nation’s tourism, digital monetary companies and SME monetary companies sectors.