While globally agricultural insurance is a $2 billion business, Africa accounts for less than two percent of the market.
This is according to the latest Africa Agriculture Status Report launched today at the 2017 African Green Revolution Forum (AGRF) in Cote d’Ivoire.
To improve on this poor agricultural insurance performance, the report suggested fiscal stimulus measures, such as improvement in financial regulations, developing better credit-reporting processes, opening up special economic zones, supporting digital warehouse receipt systems and sharing risk with lenders through credit guarantees and matching funds.
The report points out other new opportunities to target support presented by digital technology, including satellite tracking and big data.
These, it said, can help locate new high value agri-economic zones and smarter financing and food security polices, especially in the face of climate change.
“Smart support is just as important as scale of support for Africa’s highly diverse group of famers and agribusinesses. To step up their game, businesses needs assistance tailored to distinct groups of viable small farms and agribusinesses at different development stages, rather than blanket support for all,” said Agnes Kalibata, president of the Alliance for a Green Revolution in Africa (AGRA).
The report’s authors concluded that although progress is being made, Africa needs to pick up the pace if it is to compete globally and turn itself from importer to exporter by feeding its people with food made in Africa.
“Hopefully the prize of a rapidly growing and valuable market for food made in Africa will spark widespread political will and attract the best business talent to build a high value food sector,” said Peter Hazell, the technical director of the report.
According to him, “this private public partnership will be essential to provide the trinity of high productivity employment, sustainable economic growth and food made in Africa for Africa and the world.”
