By Tawanda Chenana
WE, in the village, appreciate the transformation which is underway — a transformation fuelled by access to new opportunities and services through the devolution programme.
Gone are the days when rural communities were considered backwaters, isolated from the advancements and benefits enjoyed in urban centres.
Today, we stand on the cusp of a new era, where rural sophistication intersects with modern solutions — and one such solution that demands our attention is agricultural insurance.
It is, indeed, no lie that agriculture insurance could have minimised the adverse impact of drought.
President Emmerson Mnangagwa has since declared the 2023-2024 agricultural season a State of National Disaster following the El Nino-induced subdued rainfall pattern which resulted in food deficits countrywide which has left millions of households in need of food aid.
As a nation deeply rooted in agriculture, this sector plays a pivotal role in our food security, employment generation and export earnings.
However, our reliance on agriculture also exposes us to risks; chief among them being the unpredictable nature of weather patterns, particularly drought, especially as the effects of climate change continue to batter us left, right and centre.
It is in this context that the importance of agricultural insurance becomes glaringly evident.
It is disheartening to note that insurance penetration within the agricultural sector stands at below 2 percent.
This statistic is a stark reminder of the vulnerability our farmers face when unforeseen circumstances strike. The recent experiences of drought and its adverse impact on our yields serve as a wake-up call — a call to embrace the protective shield that agricultural insurance offers.
As I perused the weekend papers, I got to learn a lot.
I learnt that area yield insurance, a relatively new concept for many of us in the villages, holds immense promise.
This type of insurance is area-based, meaning it insures the yield itself rather than individual farms.
This innovative approach ensures that farmers are compensated for losses incurred due to various factors, including moisture stress, pests and other crop-related challenges.
With area yield insurance, farmers can rest assured that their hard work and investment are safeguarded against unforeseen setbacks.
However, the key to unlocking the benefits of agricultural insurance lies in increasing awareness and accessibility, especially among rural farmers. It is imperative that stakeholders, including Government agencies, financial institutions and insurance providers, join hands to educate and empower our farming communities.
For rural farmers, the benefits of embracing agricultural insurance are manifold. Firstly, it provides financial security and stability by mitigating the risks associated with crop failure or yield reduction.
This, in turn, enables farmers to make informed decisions, invest confidently and plan for the future without the looming uncertainty of natural disasters.
Secondly, agricultural insurance fosters resilience and adaptability in the face of climate change and other environmental challenges.
By having a safety net in place, farmers can bounce back from setbacks more effectively, sustain their livelihoods and contribute to the overall resilience of our agricultural sector.
Moreover, agricultural insurance enhances access to credit and financial services for farmers. Lenders are more inclined to extend credit to insured farmers, knowing that their investments are protected against unforeseen losses.
This access to capital empowers farmers to expand their operations, adopt modern farming practices and improve their overall productivity.
To maximise uptake among rural farmers, insurance providers must offer tailor-made and affordable packages that speak to the specific needs and challenges of agricultural communities.
Flexible payment options, bundled services and simplified claims processes can make insurance more accessible and attractive to farmers.
Capacity-building initiatives, training workshops and outreach programmes will play a vital role in increasing awareness and understanding of agricultural insurance concepts and benefits to rural farmers.
After this national disaster, empowering farmers with knowledge and skills enables them to make informed decisions and actively participate in risk management strategies.
And it is evident that the journey towards a resilient and prosperous agricultural sector must include embracing agricultural insurance.
It is not just a safety net; but crucial for sustainable development of this all-important sector.
Rural farmers should take proactive steps towards securing their future, while service providers innovate and collaborate in offering affordable and effective insurance solutions.
Together, we can build a more resilient and prosperous agricultural landscape.
Businessman and philanthropist Tawanda Chenana is also the ZANU PF Secretary for Education for Mashonaland East.
