Innovative Insurance Solutions for Uganda’s Resilient Banana Farmers

Ahumwire Justine, a banana farmer from Uganda, faced devastation when a storm destroyed her crops. In response, the NDC Action Project aims to provide insurance to farmers to protect against climate change impacts. The initiative leverages digital technology for efficient claims processing and incorporates training for sustainable agricultural practices, with a goal of supporting 50,000 farmers.

Ahumwire Justine, a banana farmer from Shuku in southwestern Uganda, recently experienced the severe impact of extreme weather on her agricultural endeavors. In October, a violent rain and hailstorm ravaged her farm, resulting in the destruction of 300 banana trees and the loss of two cows. This devastation forced her family to contemplate abandoning their two-hectare farm, which lacked insurance. Justine lamented, “We had no food, no money for school fees for my children and no food for my animals.” The increasing frequency and severity of storms are linked to climate change, as noted by the Intergovernmental Panel on Climate Change. To address such challenges, the NDC Action Project—a collaboration between the United Nations Environment Programme (UNEP) and the UNEP Copenhagen Climate Centre—aims to provide farmers like Justine with protective measures against extreme weather. Mirey Atallah, Chief of the Adaptation and Resilience Branch at UNEP’s Climate Change Division, emphasized the importance of integrating technical and financial tools to improve resilience for smallholder farmers. Bananas play a crucial role in Uganda’s economy, with 47% of farmers growing this crop as of 2019. Beyond their nutritional value, bananas offer materials for rope, mats, and packaging, illustrating their holistic significance. However, farmers now confront an uncertain future due to increasingly erratic weather patterns in the past 15 years. Florence Muranga, Director of the Banana Industrial Research and Development Centre, highlighted the distressing volatility in weather, stating, “We could have two years of non-stop rain, and then six months with no rain at all,” underscoring the risks farmers face. The Banana Industrial Research and Development Centre has been pivotal in UNEP’s initiative to broaden access to crop insurance, training an initial cohort of 930 banana farmers in smartphone usage to document their crop conditions digitally. This innovative platform allows farmers to report storm damage by submitting photos, which are then analyzed by agroeconomists from the insurance company to assess the damage. Importantly, the technology has engaged nearly 50% female farmers, overcoming barriers to digital participation through ‘Champion Farmers’ like Justine, who impart their knowledge to peers. Collaborating with Agriculture and Climate Risk Enterprise Africa, the initiative connects farmers with insurers. This digital approach minimizes in-person inspections, expediting claim processing and reducing premiums. Farmers also receive training in sustainable practices such as water management and agroforestry, which has reportedly increased productivity significantly while mitigating climate-related losses. This resilience not only reduces insurers’ payout risks but also fosters greater access to loans for farmers. The initial success of this pilot program paved the way for expansion, aiming to extend coverage to all 5,000 farmers represented by the Banana Industrial Research and Development Centre, with aspirations to reach 50,000 farmers nationwide. For Justine, the introduction of insurance has brought a sense of security: “I know that if [my crops get damaged] I have help. It’s not like in other years, where I would have to start from zero.” This newfound assurance is invaluable amidst the challenges posed by climate change.

The article discusses the vulnerability of banana farmers in Uganda to the impacts of climate change, notably through extreme weather events that threaten their livelihoods. It highlights the case of Ahumwire Justine, whose crops and livestock suffered catastrophic losses from a recent storm. In response to these challenges, the NDC Action Project, initiated by UNEP, provides essential crop insurance designed to help farmers mitigate risks associated with climate variability. This innovative approach utilizes digital platforms to facilitate claims and enhances farmers’ knowledge of sustainable agricultural practices.

The introduction of crop insurance through digital platforms represents a significant advancement for banana farmers in Uganda, providing them with essential tools to safeguard their livelihoods against the impacts of climate change. As evidenced by the experiences of farmers like Justine, this initiative not only offers financial security but also promotes resilience and productivity in the face of unpredictable weather patterns. The successful rollout of this program signifies a pivotal step towards sustainable agriculture and economic stability for thousands of farmers in the region.

Original Source: www.unep.org