ALGIERS – Monday, 29 May 2023 (APS) – President of the African Insurance Organization (AIO), Ben Kajwang, called Monday in Algiers, on African governments to develop premium subsidies for the agricultural insurance market, stressing that the continent’s market remains underdeveloped, despite the significant existing opportunities.
“The African Insurance Organisation calls on African governments to develop premium subsidies for the agricultural insurance market, and to improve the financial education of farmers,” said Kajwang at the opening ceremony of the AIO’s 49th Conference and Annual General Assembly.
In this respect, he said that “the agricultural insurance market remains underdeveloped in Africa, with low participation rates and a limited range of products,” adding that “most agricultural insurance premiums are only offered in a few African countries.”
“Only 1% of small-scale African farmers are currently covered by insurance, at a time when the global economic environment in general and Africa in particular is going through difficult times, with rising inflation, disruption of global supply chains and food insecurity.”
Calling for the development of the continent’s agricultural insurance industry, he said that “Africa has 65% of the world’s uncultivated arable land and an abundance of water, as well as the potential for 300 days of sunshine a year.”
“Over 60% of Africa’s population is engaged in agriculture, and around 23% of Africa’s GDP comes from agriculture,” he added, noting that “Africa could produce two to three times more cereals and grains.”
To this end, the President of the AIO highlighted three major challenges facing Africa, namely climate change, the volatility of world prices, and undernourishment.