twitter RSS Feed linkedin acp contact

World's largest non-governmental climate insurance programme for smallholder farmers launched

VisionFund International, World Vision’s microfinance arm and Global Parametrics, has launched a new climate insurance programme, the African and Asian Resilience in Disaster Insurance Scheme (ARDIS), that will benefit more than four million people in six low-income countries

Michael Tobiko Turere with animals 1Michael Topic Turere, pictured on his farm, took out a VisionFund Kenya recovery loan to help him get back on his feet. (Image source: VisionFund)

The programme is thought to be the world’s largest non-governmental climate insurance programme. ARDIS will increase access to finance and provide post disaster recovery lending to rural families and smallholder farmers who live below the poverty line and participate in VisionFund’s microfinance network.

The programme is funded by the United Kingdom’s Department for International Development (DFID) and by the InsuResilience Investment Fund, set up by German development bank KfW and managed by Swiss-based impact investment manager BlueOrchard Finance. Financing for the initial preparation and assessment required to implement the programme came from the Rockefeller Foundation and FMO, the Dutch development bank.

In its first year, ARDIS protection will be provided to VisionFund’s clients in Kenya, Malawi, Mali, Zambia, Cambodia and Myanmar, of which around 80 per cent are women. This programme will effectively meet one per cent of the G7 goal to increase access for up to 400mn uninsured people in developing countries to insurance products that protect against climate risk.

The ARDIS programme allows beneficiaries to receive swift access to much-needed credit required by farmers and small businesses after a climate shock. Recovery lending, essentially small loans with special terms, is provided through VisionFund’s microfinance institutions. Such loans are disbursed immediately during and after disasters to help clients maintain or restart economic activities, complementing relief aid which is required for urgent survival needs in disaster situations.

Fast recovery lending to the client is enabled by the provision of liquidity to the microfinance institution in order to bolster its resources to cope with increased demand. Global Parametrics’ advanced climate-based data modelling verifies the climate event and triggers access to both contingent liquidity and risk capital by VisionFund’s microfinance institutions. This injection of funds to the microfinance institutions restores their balance sheets, thus ensuring business continuity or enhancement of operations and services despite the common disruptions created by such calamities. For example, typically in disasters when clients cannot repay loans and there is higher demand for lending, microfinance institutions suffer a reduction in the amount of capital they hold and are therefore required to curtail their lending.

The contingent liquidity for ARDIS is provided by the InsuResilience Investment Fund which is managed by impact investment specialist, BlueOrchard Finance, and backed by KfW on behalf of BMZ, the German Federal Ministry for Economic Cooperation and Development. Risk capital is provided through the Natural Disaster Fund that is managed by Global Parametrics and currently funded by the British government via DfID. The structure offers an affordable and sustainable system for disaster recovery lending at costs of approximately half a per cent of loan portfolio value per annum payable by the microfinance institution.


LATEST NEWS IN Agriculture

Nature-based solutions help farmers in Ghana

Nature-based solutions help farmers in G…

Organic pesticides, waste-based fertilisers and forest regeneration are just a few of the green initiatives being employed in Ghana to boost farming communities’ resilience to the impacts of climate...

Boosting soil nutrient mapping in sub-Saharan Africa

Boosting soil nutrient mapping in sub-Sa…

The Food and Agriculture Organization of the United Nations (FAO) is set to fast track an impact-oriented project in sub-Saharan Africa and Central America for digital soil nutrient mapping, after...

Gambia-Korea partnership seeks to double rice production to curb food insecurity

Gambia-Korea partnership seeks to double…

President Adama Barrow has received a delegation led by the Korean Ambassador to The Gambia, HE Kim Ji-Joon, at the State House in Banjul to announce the delivery of sample rice...

World Sustainability Organization chooses Zambia as the first African Sustainability Hub

World Sustainability Organization choose…

The World Sustainability Organization and Foundation (WSO&F) has signed a Memorandum of Understanding (MoU) with the Zambian Government, to make Zambia the African Sustainability Hub 

Rallying call to improve African and global cotton production

Rallying call to improve African and glo…

As the business of cotton production continues to attract global attention, there are concerns about how sustainable the practice of growing, harvesting, and production will be, especially for lower income...

Research and farming institution from Zimbabwe wins FAO Award

Research and farming institution from Zi…

The Food and Agriculture Organization of the United Nations (FAO) honoured three research and farming institutions, one of which was from Zimbabwe

Prev Next

OTHER RELATED ARTICLES - Agriculture

Kenyan farmers are struggling, says 60 Decibels' study

Kenyan farmers are struggling, says 60 D…

Nine out of 10 Kenyan farmers said their financial situation has worsened during the coronavirus pandemic, according to data released by 60 Decibels, a tech-enabled impact measurement company

Ensuring environmentally-friendly farm practices for global food security

Ensuring environmentally-friendly farm p…

Andre Laperrière, executive director of Global Open Data for Agriculture and Nutrition (GODAN) has highlighted the importance of sustainable farming practices to deal with global food security issues

Sustainable agriculture to fight climate change and involuntary migration

Sustainable agriculture to fight climate…

FAO and IOM call for renewed focus on rural development and sustainable agriculture to mitigate climate disasters that are displacing one person every second

Corteva Agriscience leads fight against above-ground maize pests

Corteva Agriscience leads fight against …

Corteva Agriscience has officially introduced PowerCore technology to South Africa’s maize farmers

Cocoa-Africa's future threatened

Cocoa-Africa's future threatened

Climate change could transform chocolate into luxury few can afford, according to new study

Africa-Brazil-China axis key for world agriculture

Africa-Brazil-China axis key for world a…

A new report says that Africa will play a key role in the future of food security

Scientists develop X-ray crop technology

Scientists develop X-ray crop technology

Scientists have adapted a technology used in the mining industry to speed up the development of nutritious food crops, which could improve the diets of more than two billion people

Emerging agriculture technologies to optimise farmers' output

Emerging agriculture technologies to opt…

The African Development Bank Group (AfDB) has announced to provide new technologies to African farmers, aiming to transform agricultural production

AGCO leads sustainable business projects for African smallholders

AGCO leads sustainable business projects…

AGCO has led new project to determine sustainable business models for smallholders and farm service centres in the African region in African green revolution forum (AGRF) which was held on...

West African countries are sharing pesticides and other supplies to combat Desert Locusts

West African countries are sharing pesti…

With Desert Locusts ravaging large swathes of East Africa in recent months, concerns have been rising that swarms could turn their sights westward and invade countries such as Chad, Niger,...

Report: Plant-based meat market to expand at more than 11 per cent CAGR till 2025

Report: Plant-based meat market to expan…

The soy source segment of plant-based meat market will likely register more than 10 per cent gains by the end of the predicted timeframe owing to growing consumer awareness of...

Louise Jupp explains benefits of commercial drone systems and drone surveying to farmers

Louise Jupp explains benefits of commerc…

Louise Jupp, co-founder and director of Terreco Aviation (Pty) Ltd and a licensed drone pilot, has released her debut book ‘Precision Farming from Above: How Commercial UAV/Drone Surveys are Helping...

Prev Next