Ethiopian Farmers Receive First Crop Insurance Payments Amid Climate Challenges

Addis Ababa — In a historic move, smallholder farmers in two districts of Ethiopia have received crop insurance payments for the first time, marking a significant milestone in the country’s agricultural sector. This initiative, aimed at mitigating climate risks, was launched through a collaboration between the Agricultural Transformation Institute (ATI), the World Food Programme (WFP), and Pula Advisors, with funding from the Government of Germany.

According to Ethiopian News Agency, Country Manager of Pula Advisors, this insurance payout will benefit 51,132 farmers who have suffered crop losses due to various perils, including pests and diseases. The program specifically targets smallholder farmers, with a focus on youth and women, reflecting its commitment to inclusivity and empowerment in the agricultural sector. The areas most affected were the Jama and Were Illu districts, where the outbreak of Yellow rust led to significant crop damage, triggering the insurance compensation.

Mandefro Nigussie, CEO of the Agricultural Transformation Institute, highlighted the broader implications of the insurance program. He noted that a substantial portion of Ethiopia’s adult population depends on agriculture for income, with many facing increasing threats from climate change and pest invasions. This insurance mechanism is part of a larger strategy to enhance farmers’ resilience by providing them with necessary supports such as access to improved agricultural inputs and credit facilities.

This initiative represents a robust example of public-private partnership and is a critical step toward strengthening the economic stability of farmers and enhancing agricultural productivity in the face of escalating climate challenges.