Beninese agric insurance pilot project expands to protect 100,000 farmers

BENIN – The Beninese government has launched an expanded phase of its agricultural insurance project, aiming to protect 100,000 farmers from climate-related losses.

This initiative, which initially covered 11,000 rice farmers in 2024, will now extend to cotton producers and livestock breeders.

This project introduces a yield index insurance model designed to offer financial protection against droughts, floods, and crop diseases.

Unlike traditional insurance, which compensates farmers based on assessed losses, this system relies on measurable agricultural data. Compensation is issued when the yield in a region falls below a specified threshold due to adverse weather conditions.

Minister of Agriculture, Livestock, and Fisheries, Gaston Cossi Dossouhoui, described the project as a step toward strengthening the agricultural sector.

“This initiative ensures that farmers do not bear the full burden of climate-related risks alone. It gives them the confidence to invest more in their farms,” he stated during the project’s official launch on March 4, 2025.

The insurance uses satellite remote sensing, weather sensors, and agricultural modeling to determine yield levels across different regions.

If the data indicates a significant drop in production, insured farmers in the affected area receive compensation without the need for individual farm assessments.

Farmers who enroll in the program benefit from quicker compensation processes. Traditional insurance often involves lengthy investigations, delaying financial relief.

With this index-based model, payments are made shortly after a production loss is confirmed. Additionally, the reduced administrative costs make the insurance more affordable, allowing more farmers to participate.

Another key advantage is improved access to credit. Banks are more willing to offer loans to insured farmers, as their investments are better protected.

“This project makes financing less risky for financial institutions, which ultimately benefits farmers who need capital for their operations,” explained a spokesperson from NSIA Assurances Benin, one of the project’s partners.

This initiative is supported by a public-private partnership involving multiple stakeholders. The Swiss Cooperation and the Luxembourg Cooperation are covering 80% of the insurance premiums, with a total project cost of 2.37 billion CFA francs (USD 4.05 million).

Additional support is provided by NSIA Assurances Benin and the International Cabinet Pula Advisors, ensuring both financial backing and technical expertise.

Niger state’s plan to employ 100,000 youth in agriculture

Meanwhile, in Nigeria, the government of Niger State is working to increase employment in agriculture. On March 5, 2025, the state signed an agreement with the National Agricultural Land Development Authority (NALDA) and the Ministry of Youth Development to engage 100,000 young people in agricultural production.

A statement from the state government indicated that the initiative is part of a broader plan to produce an additional 500,000 tons of agricultural products. “We are creating opportunities for young people while strengthening food production,” the statement read.

Niger Foods, a company backed by the state government, has been securing investments for large-scale agricultural projects.

In February 2024, it signed a 50-year lease for 10,000 hectares to cultivate rice, sesame, soybeans, and maize. In September, it announced plans to build six sugar factories across 148,000 hectares, a project set to run through 2027.

More recently, on January 28, 2025, the government signed a $3.2 million agreement with the National Fund for Agricultural Development (NADF) to expand rice and maize cultivation across 4,000 hectares.

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