Building resilient agricultural ecosystems for Smallholder farmers in Africa with Tech as the foundation

Last week, Casablanca, Morocco, became the epicenter of conversations on #AgriFinance in Africa as the International Finance Corporation (IFC) hosted its FIG Africa AgriFinance event. Among the highlights was an engaging roundtable discussion on Agri-Insurance, where I, representing IBISA Network, shared invaluable insights on the transformative role of technology in driving agricultural insurance penetration across Africa. Sharing the stage with Stella Kimani Ayandev Saha Ana?s SYMENOUH with gilles galludec as the moderator.

Tackling the Challenges of Agric Insurance in Africa

In my submission, I identified a series of persistent challenges that have stifled the growth of agricultural insurance in the continent. These included:

-????????? Lack of Awareness and Education: Many farmers are unaware of climate insurance and its benefits, making education and training critical.

-????????? Eroded Trust: Farmers often lack trust in insurance, largely due to negative experiences or misconceptions.

-????????? Access Barriers: The remote locations of many farmers make it difficult for them to access Agric insurance solutions.

-????????? Affordability: For smallholder farmers, the cost of insurance competes with other pressing financial obligations.

-????????? Fragmentation: Farmers are not aggregated in a way that attracts insurers to serve them effectively.

-????????? Insurer Limitations: Insurance companies face challenges such as low appetite for Agric risks, limited expertise in underwriting and pricing these risks, and a lack of comprehensive data for informed decision-making.

Technology: A Game-Changer

Technology, while not being the silver bullet, is the cornerstone for overcoming these challenges. It is the foundation for addressing these barriers. Africa is already home to numerous AgricTech companies providing services that address the very challenges I outlined. These companies are leveraging technology to improve:

-????????? Awareness and education through digital platforms.

-????????? Data aggregation for more accurate underwriting.

-????????? Affordable distribution models that leverage mobile and digital finance solutions.

-????????? Trust-building initiatives through transparent and efficient claims processes.

I was privileged to hear from ThriveAgric SOWIT | AgriTech and AgriFinance AgroSfer TechHouse Kifiya Financial Technology PLC Farmforce Complete Farmer to mention only a few.

The greatest question I left the stage with was posed by John Kamara , who asked why we do not use the data that farmers have to create wealth and assets for them to use in paying for premium for Agric Insurance. I have vowed to work closely with him to see how we can bring this idea to fruition to help answer the last question the panel left it, which was “who will pay for all of these?”

The IBISA Approach in Africa

Highlighting IBISA Network’s unique contribution, I explained how our organization adopts a partnership and ecosystem approach. By bringing together regulators, donor agencies, reinsurers, insurers, financial institutions, distribution partners, and other stakeholders, IBISA creates holistic solutions tailored for smallholder farmers. This model not only addresses the pain points but also strengthens the overall Agric insurance value chain.

A Call to Action

Let’s work together to empower Africa’s farmers and build resilient agricultural ecosystems through inclusive insurance solutions. Let’s build collaborative efforts backed by data and technology to make meaningful impact on the lives of Africa’s smallholder farmers.

#agritech #IFC #agricinsurance #inclusiveinsurance #ibisa #insurtechs