Most of Africa’s farmers are not insured against climate shocks, a gap that threatens livelihoods and food security across the continent.
This week, the African Reinsurance Corporation (Africa Re), in partnership with the International Finance Corporation (IFC), launched a three-day workshop in Nairobi to accelerate the adoption of affordable agricultural and climate insurance. The forum brings together regulators, insurers, financial institutions, and technology firms to develop market-driven solutions that protect smallholder farmers from extreme weather and other risks.
Agriculture remains the backbone of most African economies but continues to face rising vulnerability from droughts, floods, and shifting weather patterns. In Kenya, only under one percent of farmers have insurance coverage, limiting access to credit and discouraging investment in better seeds, equipment, and technology.
“We must shift agriculture insurance in Africa from being donor-led pilots to becoming a mainstream, sustainable line of business that protects farmers and supports food security,” said Dr. Phocas Nyandwi during the opening address. “Africa Re will continue to provide reinsurance capacity, technical expertise, and partnership platforms to help these markets thrive.”
The workshop focuses on practical solutions to close the protection gap, including the use of parametric insurance — which triggers quick payouts based on weather data — and digital platforms that can extend coverage to farmers in remote regions. Participants are also examining successful public-private models from Kenya, Rwanda, Senegal, and Nigeria.
“For private capital to flow into agriculture, investors need certainty,” said Sanjay Kalpage, Senior Financial Specialist at IFC. “When we de-risk the farmer, we de-risk the entire value chain. This partnership with Africa Re helps build the foundation for investment and resilience.”
The initiative aims to move agricultural insurance beyond pilot projects into scalable, profitable products that can be integrated into national and regional financial systems.
