The government of Togo has recently allocated $1 million towards a novel sovereign insurance subscription crafted for local farmers. This comprehensive package extends coverage for the agricultural campaign spanning 2023-2024 and encompasses a substantial $500,000 grant from the African Development Bank (AfDB).
The groundbreaking insurance agreement was formalized with the African Risk Capacity (ARC), a pan-African mutual specializing in risk management. As outlined by the Ministry of Agriculture, this initiative is designed to empower Togolese farmers by providing “emergency support in the event of extreme weather events and natural disasters, such as drought, floods, tropical cyclones, epizootics, locust invasions.”
This commitment marks Togo’s annual subscription to a similar policy since 2019, strategically aimed at mitigating the adverse effects of droughts and rains on farmers’ activities. The corresponding financial commitments over the preceding years were $499,924, $500,000, $994,625, and $1,000,000 in 2019, 2020, 2021, and 2022, respectively.
In the agricultural period of 2022-2023, Togo benefitted from a substantial $2.5 million contribution from ARC within the same framework. This funding infusion became particularly crucial as the nation faced multiple instances of drought, significantly impacting crop production.
According to government reports, the drought severely affected 69,444 farmers nationwide in 2022. The Savanes region bore the brunt of the challenges, with 59,167 farmers experiencing adverse effects, while the Kara and Central regions recorded 6,233 and 4,044 affected farmers, respectively.
The injection of $1 million into the sovereign insurance subscription underscores Togo’s commitment to proactively addressing the vulnerability of its agricultural sector to climate-related risks. By collaborating with ARC, the government aims to fortify the resilience of local farmers, providing them with a safety net against the unpredictability of extreme weather events and natural disasters.
The inclusion of a $500,000 grant from the African Development Bank further amplifies the collaborative effort to safeguard Togolese farmers. This financial support not only reflects the commitment of the AfDB to promoting sustainable development but also signifies a collective response to the challenges posed by climate change in the agricultural landscape.
As Togo continues to demonstrate its dedication to building a more resilient agricultural sector, the insurance subscription with ARC serves as a proactive measure to mitigate the impact of climate-related adversities on farmers’ livelihoods. The government‘s ongoing collaboration with international partners and institutions underscores the importance of collective action in addressing the complex and interconnected challenges faced by the agricultural community in the region.
Source: Togofirst