Assurance agricole au Burkina : Les résultats de l’étude sur le diagnostic et le placement de solutions présentés aux acteurs

Agricultural insurance in Burkina Faso: results of the study on diagnosis and development of solutions for actors

In order to provide climate insurance for small farmers that is appropriate to their needs and realities, the Project to Promote Index-Based Climate Insurance for Small Farmers (PPACI-BF) commissioned a diagnostic study and investment in the agricultural insurance solutions market. The study was conducted by Pula Advisor AG and the company presented the results on July 19, 2022 in a workshop.

Implemented by the National Council on Sustainable Development (CNDD), the Enhanced Index-Based Weather Insurance for Small Farmers (PPACI-BF) aims to strengthen the resilience of small farmers to the effects of climate change. By giving them access to climate insurance for their crops.

This weather insurance according to the permanent secretary of CNDD, So-manegre Nana, should allow the harvest to be jeopardized by climatic hazards, to return to the saddle with the premium to be paid to them by the insurance company.

So-manegre Nana, Permanent Secretary of CNDD

In order to ensure the sustainability and effectiveness of this insurance, which will be provided to the beneficiaries, Pula Advisor has conducted a diagnostic study of the current situation of agricultural insurance in Burkina Faso as well as introducing agricultural insurance solutions to the market. AG. The goal is to obtain a basis for selecting and designing an index-based agricultural insurance solution most appropriate for the market. Those are the conclusions of this study, which the company presented today.

According to Luke Kafando, PPACI-BF Coordinator, three types of agricultural insurance products can be offered to producers. The first product can be based on weather data for rainfall. At this level, the insurance company analyzes the amount of rain that has fallen to see if it is sufficient or not for the producer to harvest properly. If not, he is compensated for his losses. The second product can be based on satellite data.

Luke Kafando, PPACI-BF Coordinator

For this purpose, the rain level is estimated by an algorithm. The third insurance product is all risk. At this level, returns are analyzed to see if the product has achieved the expected return. If so, he will not receive any payments. Otherwise, the insurer pays the difference or the entire amount invested by the producer if it has no return.

Each insurance product has its own advantages and limitations, the project implementing partners considered it necessary to make recommendations to the PPACI-BF management unit on the most appropriate product for agricultural producers. Therefore, this product will be validated by participants after presenting the results of the company’s study and the recommendations it made, said PPACI-BF Coordinator Luc Cavando. He explained that after checking the agricultural insurance product most suitable for smallholder farmers, a trial will be conducted to implement it in the three project communes, namely Chiriba, Savani and Dori. Then the product will be supplied nationwide.

A family photo of the participants

As a reminder, PPACI-BF is funded by the Global Environment Fund (GEF) and implemented by the United Nations Development Program (UNDP).

Armel Ouedraogo / Yamyogo

Lefaso.net

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