A regional approach to Weather Based Index Insurance

Climate change has become one of the biggest risks that farmers are facing and is threatening to compromise agricultural transformation particularly in the smallholder sector.

SACAU considers weather based index insurance as one of the key instruments that has the potential to help farmers manage climaterelated risks. However, the uptake of weather based index insurance is currently limited due to a number of factors, including its limited availability and high cost.

Risk pooling across the different countries in southern Africa is expected to significantly reduce the cost of insurance, thereby enhancing access by large numbers of farmers. It is against this background that SACAU commissioned work to develop a proposal for a framework that would support this.

SACAU is organising a workshop to discuss this framework. The workshop will be held at Birchwood Hotel & OR Tambo Conference Centre, in Johannesburg, South Africa on 01 and 02 March 2018.

The workshop is designed to solicit further input from a cross section of key stakeholders such as inter-governmental bodies and farmers organisations from selected countries in southern Africa before the framework is finalised.

The workshop will amongst other cover the rationale for a regional approach and the proposed elements of the framework. The next phase will be to mobilise support for the region to adopt a harmonised framework for weather based index insurance.

This work is part of SACAU’s initiative on climate change. This particular aspect is being undertaken with support from the Technical Centre for Agricultural and Rural Co-operation ACP-EU.