IFC partners with insurers to develop climate insurance for Ivorian Farmers

IVORY COAST – The International Finance Corporation (IFC) has entered into an agreement with a group of insurers in Côte d’Ivoire to establish climate-focused insurance products for farmers and small businesses. 

The collaboration, announced on December 2 in Abidjan, involves Atlantique Assurances, Sanlam Allianz, and AXA.

The initiative aims to provide coverage for 50,000 farmers by 2026, addressing vulnerabilities caused by climate risks in the country. 

Côte d’Ivoire’s agricultural sector, contributing 14.4% of the nation’s GDP and employing nearly 46% of the active workforce, faces challenges from changing weather patterns. 

The project will offer insurance solutions tailored to these risks while integrating mobile technologies to facilitate faster payments and claim settlements.

Kwenda Josiane, IFC’s Regional Representative for Côte d’Ivoire, Togo, and Benin, emphasized the importance of improving access to insurance for farmers, suggesting the project could serve as a framework for other West African nations struggling with similar climate-related issues.

Agricultural insurance penetration remains low across Africa, with just 1% of smallholder farmers covered in 2016/2017, according to the African Insurance Organization. 

This figure contrasts sharply with rates exceeding 15% in Latin America and nearly 50% in Asia during the same period.

That said, Côte d’Ivoire holds a critical position in global agriculture. 

It is the top producer of cocoa worldwide, generating 1.9 million tons in 2018, and is a significant supplier of cashew nuts, kola nuts, and yams, producing 688,000 tons and 7.2 million tons, respectively, during the same year. 

The nation’s export portfolio includes cocoa, rubber, palm oil, bananas, pineapples, and copra, with cocoa beans alone accounting for 37% of export earnings and 10% of total export volume.

Agriculture contributes between 23% and 25% of the country’s GDP, with more than half of the active population engaged in farming. 

Smallholder farmers are responsible for producing the majority of essential food crops such as rice, maize, cassava, and plantains.

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