Prefeasibility Study on Large-Scale Smallholder Farm Drought Insurance in South Africa

Land Bank Insurance (SOC) Limited of South Africa and CelsiusPro join forces to develop and introduce an index drought insurance scheme (area-yield for crops and NDVI for livestock) consisting of both crop and livestock insurance for smallholder farmers in South Africa. South Africa is vulnerable to climate change and El Niño, that can further exacerbate the drought. It is against this background that a study is necessary in order to among others, assess demand for the drought insurance for crop and livestock; obtain a better understanding of market dynamics and development of a business model concept for the drought-insurance scheme.