How index insurance can support smallholder farmers

A farmer watering vegetable leaves in a farmland. 

Photo credit: Shutterstock

Climate change is exacerbating extreme weather events such as drought, floods, crop and animal diseases, and increased pest infestations. Farmers in Africa are particularly vulnerable to these risks, which severely impact agricultural productivity and, consequently, food security and the incomes of small-scale farmers.

With agriculture contributing 16 percent of Africa’s Gross Domestic Product (GDP) and employing roughly 60 percent of the population, the continent’s high dependence on natural resources makes these climate extremes a significant threat to both economies and household livelihoods.

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