Better understand agricultural insurance and make it a key tool of financial inclusion – Le Sahel

The Support Project for the Competitiveness of Exports and the Modernization of Business Services and the National Committee of Agricultural Insurance Based on Indices organized yesterday morning in Niamey, a training of stakeholders on Agricultural Insurance . This meeting, whose opening ceremony was chaired by the Minister of Humanitarian Action and Disaster Management, Mr. Laouan Magagi, aims to improve the understanding of national actors on insurance solutions agriculture (fundamental principles, different products, institutional arrangements, roles and responsibilities of farmers). the public and private sector, etc.) and agree on the activities that will be implemented under this project. The splendor of this ceremony was enhanced by the presence of members of the Government and the representative of the World Bank.

On this occasion, the Minister for Humanitarian Action and Disaster Management recalled earlier that climate change and variability continue to expose Niger to random and insufficient rainfall, but very often brutal and intensive that cause successive floods that the its frequency increases more and more. This state of affairs exposes, Mr. Laouan Magagi, our country to many natural hazards including drought, bush fires and floods resulting in food and pastoral crises every two years. “The combined impact of these disasters continues to weaken the domestic economy of our families, thus accelerating the loss of livelihoods by reducing response capacities and promoting the shift of vulnerable groups, especially rural families, in structural precariousness,” he argued.

Minister Laouan Magagi also welcomed this initiative of the Government of Niger and the World Bank which, he said, is an essential tool to strengthen the resilience of populations in the face of climate change. He also noted that on the side of this training, bilateral meetings will be organized between the World Bank team and the various players in the insurance value chain. “Many actors are now interested in this topic and the need to unite all these actors in the framework of an effective intersectoral coordination is essential,” said the Minister of Humanitarian Action and Disaster Management.

According to the representative of the World Bank, Mr. Louis Akakpo, Agricultural Insurance is part of a dual agenda. The first is that of financial inclusion, which remains a challenge in all the countries of the subregion. In addition, the technical assistance of the World Bank will consist of accompanying the authorities in the various countries where it intervenes to increase knowledge, confidence and the appropriate use of financial services by the population and to facilitate access to credit for entrepreneurs, producers and SMEs. /SME. Indeed, he stressed, Insurance as a risk management tool helps protect livelihoods and investments from risk. In addition, index insurance, in connection with the development of financial technologies, not only allows to reduce costs, but also to make insurance more inclusive and more accessible.

The second agenda is that of climate resilience. “The development of insurance and the transfer of risks in general are part of the approach of the World Bank Group for the management of the financial impact of climate risks”, explains Mr. Louis Akakpo. “It is therefore more necessary than ever to use innovative solutions to better manage the mentioned risks and facilitate access to financing for the actors of the agricultural sector”, he suggested. In the contexts of limited fiscal bases, the public-private partnership is an asset for the sustainability of mechanisms such as agricultural insurance with “smart” public support that allows to create a leverage effect with the efforts of the private sector , concluded the representative of the World Bank.

Aïchatou Hamma Wakasso (onep)

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