To improve the productivity and agricultural risk resilience of smallholder farmers a new partnership has been formed. The Frankfurt School of Finance and Management (FS), as implementing agency of the InsuResilience Solutions Fund (ISF) announced today the signing of a grant funding agreement with the InsurTech company Pula and Ghana Agricultural Insurance Pool (GAIP), to design and implement climate risk insurance products.
Agriculture is the economic backbone of Ghana, contributing to a large share of GDP and employing over 50% of the workforce, most of them smallholder farmers. The country´s agriculture is predominantly traditional and rain-fed, resulting in high dependency on weather conditions, such as natural rainfall cycles. Rising temperatures, longer dry spells and more intense heavy rainfall make the farmers vulnerable to climate risks. The lack of access to financial services such as credit and insurance, as well as to mechanisation and extension services, such as fertilisers and improved seeds, are additional challenges Ghanaian smallholder farmers’ face. The risk and negative livelihood impact of an insufficient or failed harvest can be enormous for a smallholder household.
The project aims to provide affordable climate risk insurance solutions to farmers, covering a wide range of risks such as drought, flood and plant disease that affect the harvest significantly. In collaboration with Ghana Agricultural Insurance Pool, as well as other local partners from the agricultural sector the insurance will get into farmers’ hands. The insurance product in Ghana will be bundled with certified high-quality inputs, such as seeds and fertiliser from providers that smallholder farmers already know and trust, supplemented by tailored agronomy advice. To reach beneficiaries across Ghana the project innovates new data-driven solutions and delivery mechanisms.
With the support of ISF and strong public and private sector partnerships, Pula will build the basis for a scalable and sustainable model to adapt to climate change. This will pave the way not only to boost and promote agricultural productivity, but also to protect the livelihoods of smallholder farmers and demonstrate the use and benefit of climate risk insurance, which will enable them to respond effectively to risks and climate change.
*The ISF was set up and is funded by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). It is a key delivery channel for the InsuResilience Global Partnership, a joint initiative by the G20 and V20 countries to reduce vulnerability. The ISF supports innovative insurance solutions to mitigate negative impacts of climate change. It offers co-funding and advice for the development of new climate risk insurance concepts into marketable products and to expand sustainable existing products.
*Pula is an insurance & agro-tech company for smallholder farmers in Africa and other emerging markets. Its mission is to provide accessible, scalable insurance solutions for smallholder farmers. Pula uses satellite technology and farm level yield data to structure insurance products that provide a viable option for previously unbanked, uninsured and underserved farmers to insure their crops and livestock. Pula is present in 11 markets.
Photo credit: Pula
Managed by Frankfurt School
GRMA hosted by ISF
