SACAU recently signed a funding agreement with the Technical Centre for Agricultural and Rural Cooperation (CTA) for implementation of a project titled “Development of a regional framework for Weather Based Index Solutions for Southern Africa.”
Working with insurance companies and farmers’ organisations amongst others, SACAU will develop a proposal for regional policy and regulatory framework for supporting the development of climate resilient solutions. This proposal will be used to engage with regional regulatory authorities to address cross-border issues on insurance, particularly the creation of an enabling environment to encourage cross-border pooling of risk by the private sector and subsequently facilitate farmers’ access to such solutions.
The focus on this was motivated by the fact that farmers, particularly smallholders, have limited access to existing adaptation solutions that could assist them in coping with acute weather patterns and climate change, which in turn affects food security, nutrition and household incomes. One particular challenge that stands out is the lack of a regulatory framework and policy at regional level which results in high insurance costs. This ultimately affects the uptake of available insurance services to mitigate against shocks emanating from adverse weather conditions.
The development of a regional framework was also considered critical by stakeholders at a meeting that CTA co-hosted with SACAU in September 2016. The purpose of the meeting was to build partnerships and synergies with stakeholders in the implementation of the CTA flagship project that seeks to promote climate-resilient cereal and livestock farming in Southern Africa and for technical validation of the proposed scaling up-strategy. SACAU’s project is part of the CTA flagship project.