Agriculture is one of the most important economic sectors in Togo, employing most of the population and contributing significantly to national development. However, the sector is increasingly vulnerable to climate-related risks such as droughts, excess rainfall, river flooding, and extreme heat. These challenges endanger harvests, threaten livelihoods, and limit access to finance, as many financial institutions view agricultural lending as too high-risk.
To address these challenges, the InsuResilience Solutions Fund (ISF) supported the introduction of the first agricultural insurance products in Togo by co-funding the development and implementation of five index-based insurance products designed to cover drought and excess rainfall for key staple and export crops: maize, rice, soy, cassava, and sesame.
Building on this foundation, ISF is now expanding its support through premium subsidies designed to make agricultural insurance more affordable and accessible for smallholder farmers. This initiative is being implemented in partnership with Lorica Conseil, a local microinsurance consultancy, and SUNU Assurance, a local insurance company that will act as the risk taker for the subsidised products. The project specifically targets low-income farmers with less than three hectares of land, many of whom are unable to afford the full cost of premiums. These temporary subsidies will ease their financial burden while allowing them to experience the benefits of agricultural insurance.
The insurance solution plays a vital role in enhancing farmers’ ability to recover from adverse weather events. For those who opt for a bundled loan-insurance product, payouts in the event of a loss are used as partial loan repayments, thereby reducing their debt exposure. Alternatively, farmers who purchase standalone insurance receive direct compensation, typically via mobile money. In cases where index-based assessments do not detect actual crop losses, insurers may carry out on-site data collection and verification to determine compensation.
With ISF’s contribution, the project is expected to increase insurance coverage by 40%, reaching over 80,000 policyholders by 2027. This expansion represents a significant step towards building climate resilience among Togo’s most vulnerable farming communities and fostering sustainable agricultural development.
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