The ministry of agriculture has partnered with a private insurance company, Phoenix of Botswana for the provision financial protection against loss or damage to crops and livestock.
The agriculture insurance is said to be one of the key forms of PPP which is in alignment with the overall national strategy to create a conducive environment to encourage and attract private sector investors to play a greater role in promoting the growth of the economy.
Phoenix of Botswana, a part of the Phoenix Assurance Group, incepted in 1912 in Kenya. As one of Africa’s oldest general insurance group, that provides general insurance services.
This was revealed by the minister of agriculture Fedelis Moalo when addressing the revised Agricultural credit guarantee scheme stakeholder meeting this week where he indicated that the proposed agriculture insurance through Phoenix of Botswana strategically bridges the financial gap created by drought or other covered natural catastrophes on the fiscus by providing financial protection against losses emanating from lower-than-expected yields.
He emphasised that natural risks such as adverse weather conditions, widespread pests and diseases are the key risks facing the agricultural sector.
Molao noted that Agriculture through Phoenix of Botswana Assurance will create the much-needed collaboration between government and private sector not only on building resilience on climate change related risks on crop production, but also financially securing both the government, large scale and small-scale farmers in the event of climate related risks.
Over the years the government has been setting aside significant budget allocation towards agriculture inputs to support both large- and small – scale farmers every year. These include fertilisers, seeds, draught power and other small-scale equipment.
“In the unfortunate event of a crop failure due to drought, which obviously impacts expected yields, the same Government was compelled through its social welfare programs to ensure food security by importing supplementary food reserves,” Molao said.
He further indicated that the combined and cumulative financial requirements for financing inputs and social welfare puts a severe strain on the fiscus hence the proposed agriculture insurance through Phoenix of Botswana strategically bridges the financial gap created by drought or other covered natural catastrophes on the fiscus by providing financial protection against losses emanating from lower-than-expected yields.
