Smallholder farmers receive insurance payout

CLOUDINE MATOLA

Smallholder farmers in Goromonzi district yesterday received US$233 000 agricultural Insurance payout from Insurance Council of Zimbabwe, Business Times can report.

The Insurance Council of Zimbabwe has been working with the industry regulator, the Insurance and Pensions Commission (IPEC), the Ministries of Finance, Economic Development and Investment Promotion, the Ministry of Lands, Agriculture, Fisheries, Water and  Rural Development,  Insurance Brokers Association of Zimbabwe; farmers associations; and developmental partners,  to come up with insurance solutions to mitigate the effects of climate change.

They came up with a prototype agricultural index-based insurance product called Farmers Basket.

Speaking at the payout event , the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said : “Today, we celebrate not only the payouts to our hardworking smallholder farmers from Goromonzi, but also the power of innovation, collaboration, and resilience in mitigating the risks faced by our agricultural communities. Ladies and gentlemen, agriculture remains the backbone of our nations economy, and our smallholder farmers are at the heart of this. It also provides livelihoods for millions of people, particularly smallholder farmers. However, as we all know, farming in general has not been without its challenges. Farmers continue to face headwinds, particularly those related to climate change. Erratic rainfall patterns, prolonged droughts, and other climate-induced risks have threatened their productivity and income security, putting their livelihoods at great risk. These challenges are not unique to Zimbabwe but are a global phenomenon requiring concerted efforts and innovative solutions, he said.

He added: “Todays payout to Goromonzi farmers is more than just a financial transaction, it is a symbol of progress, resilience, and the tangible impact that innovative financial solutions can have on our agricultural communities. This momentous occasion marks the first fruits of a pilot study that I believe will have far-reaching benefits for farmers across Zimbabwe. I would like to extend my heartfelt congratulations to all the participating farmers from Goromonzi, who have demonstrated resilience and faith in this innovative insurance product. This payout is a testament to the impact of these types of solutions, which will be critical in safeguarding livelihoods in the years to come.”

Insurance Council of Zimbabwe’s  Cuthbert Masukume  weighed in saying:

“As we navigate an ever-evolving world, the need for a resilient and sustainable insurance industry becomes paramount. Extreme weather events, fueled by climate change have left many of us vulnerable. The impact is particularly felt in by smallholder farmers, agro-processers and other value chain players.

“Realising the need to address the social hardships and the negative economic effects of such weather patterns, ICZ supported by IPEC embarked on a journey to provide insurance to smallholder farmers,” he said.

He added: The insurance players, who are members of ICZ, pooled resources to form an Agro-Insurance Pool to provide insurance targeting the uninsured smallholder farmers. The effort resulted in the provision of weather-indexed agriculture insurance to smallholder farmers starting with the Goromonzi district as a pilot project. Our primary drive, in a collaborative approach, is the relentless pursuit of resilience in the face of climate-induced challenges.”