On Thursday 19 January 2023, the Ministry of Rural Development organized a consultation workshop on the institutionalization of agricultural insurance in Mali.
Every year farmers suffer heavy losses due to adverse climate change. Agriculture is the most important livelihood for rural areas and they face food insecurity. Small farmers find it difficult to deal with these threats on their own as the costs are very high. Adequate financial instruments are needed to address these deficiencies, hence the agricultural insurance initiative.
Agricultural insurance has the power to offer a promising solution and contribute to food security. However, according to the Department of Rural Development, most of the products are still in the pilot phase and there are still a number of hurdles to overcome before they can become more widely available.
This is how the Inclusive Project will rely on Socodevi/Dataflaqs Technologies Inc. collaboration, in synergy with all the involved partners and parties to define the ways and means to be implemented to achieve the massive support of producers to secure commercial crop insurance programs. , while introducing technological innovation in identification, registration, banking and digital advice for agricultural producers.
On the one hand, the project wants to develop inclusive agricultural insurance products, especially climate insurance, which covers the green credit portfolio of the partner Decentralised Finansielle Systemer (DFS). On the other hand, support the SFDs committed to providing green loans by subsidizing their access to this insurance on a degressive basis.
The general purpose of this workshop was to launch the work that would lead to the guidelines and consultation framework to begin the institutionalization of agricultural insurance in Mali.
According to Secretary General Daniel Siméon Kelema, who represents the Minister of Rural Development, this issue is of great importance to our economy because it concerns the activities of more than 80% of the active population, which produces almost 40% of the gross domestic product. .
He will say that initiatives have already been tried in Mali to cover risks related to agriculture. Nevertheless, these experiences, some of which have disappeared, remain mostly confined to very specific segments.
“Today, the government aims to create a sustainable agricultural insurance structure that will make it possible to utilize all these experiences and federal efforts to cover all risks associated with all activities in rural areas.“he will add.
Zeinabou Fofana
Source: Mali Tribune
