The Namibia Financial Institutions Supervisory Authority (NAMFISA) has submitted a comprehensive roadmap for the Agri-Index Insurance programme to the Minister of Finance and Public Enterprises, Ipumbu Shiimi.
The strategic plan outlines the regulatory framework and operational guidelines for the innovative insurance product aimed at mitigating agricultural risks.
“A draft roadmap was officially submitted to the Minister earlier this month. Recognising the urgency and significance of this project, the Minister has already taken proactive steps by scheduling a meeting with key stakeholders,” NAMFISA’s Chief Executive Officer Kenneth Matomola said.
Matomola noted that the Agri-Index Insurance programme targets small-scale farmers, especially in rural and communal areas and aims to provide a safety net for farmers against various agricultural risks, enhancing the resilience of the agricultural sector.
“This programme is designed to provide a safety net for farmers by offering insurance against various agricultural risks, thereby enhancing the resilience of the agricultural sector,” Matomola said.
The project will be guided by a detailed strategic implementation plan and the primary objective is to create a robust insurance framework that supports farmers and contributes to the agricultural economy’s stability.
“The importance of this project cannot be overstated, as it is a national initiative that aims to cover both Agri-Index Insurance and disaster risk management,” Matomola said.
Agri-Index Insurance aims to provide financial protection to farmers against losses due to adverse weather conditions, pests and diseases, while disaster risk management will focus on broader strategies to mitigate and manage risks associated with natural disasters.
This follows the World Bank delegation’s technical support on the design and implementation of an index-based agriculture insurance programme in 2022.
The World Bank delegation was made up of Qhelile Ndlovu, a Disaster Risk Finance Specialist; Andrea Stoppa, an Agriculture Insurance Specialist; Chris Hoveka, Country Engagement Coordinator and led by Ajai Nair, a Senior Financial Sector Specialist.
This comes as some farming areas in Namibia are faced with severe forage scarcity, especially grazing materials due to overgrazing and drought conditions.
Moreover, experts have noted that the situation may further deteriorate if the anticipated rainfall activities are not favourable.
