Zambia’s Largest Crop Index Insurance Payout Marks Historic Milestone for Smallholder Farmers

A significant milestone for Zambia’s agricultural sector was celebrated today as stakeholders gathered to witness the largest crop insurance payout in Zambia's history, supporting over 500,071 smallholder farmers who faced climate-related losses during the 2023/2024 farming season. This momentous event, held under the Farmer Input Support Programme (FISP), saw a payout of over 800 million kwacha—a crucial lifeline for farmers affected by drought and other adverse weather events.

The Farmer Input Support Programme (FISP) is a collaborative initiative designed to enhance resilience, food security, and financial stability among Zambia’s smallholder farmers. Implemented by Pula Advisors with the support of local partners, including ZSIC General Insurance, Professional Insurance Corporation Zambia PLC (PICZ), Savenda General Insurance, and Madison General Insurance, this program provides a comprehensive safety net, helping farmers safeguard their crops and livelihoods against climate risks. Through FISP, farmers receive coverage to help mitigate losses due to unpredictable weather conditions, allowing them to continue farming with confidence.

"Today’s payout is more than just financial support; it’s a symbol of resilience and the commitment of Zambia’s agricultural sector to protect its farmers," said Thomas Njeru, CEO of Pula Advisors. "As Pula, we are proud to stand alongside our partners and the Ministry of Agriculture to secure a brighter future for smallholder farmers, who are the backbone of this country."

The crop insurance program under FISP is tailored to the specific needs of smallholder farmers, bundling insurance with agricultural inputs to create an affordable and accessible solution. Through extensive collaboration, Pula Advisors and its partners have developed an index-based insurance product that provides protection against a wide range of climate perils, including drought and excessive rainfall. This payout event marks a major achievement in Zambia’s journey towards building a climate-resilient agricultural sector.

The Africa Digital Financial Inclusion Facility (ADFI) played a vital role in supporting Pula Advisors, providing a $1 million grant to develop and scale gender-sensitive insurance solutions targeting vulnerable groups, including women smallholder farmers, across Zambia, Kenya, and Nigeria. ADFI’s funding has enabled Pula to design innovative insurance products and implement training programs for agro-dealers and agents to better serve farmers on the ground.

Impact Beyond Numbers: Supporting Smallholder Farmers’ Livelihoods

The payout event underscored the transformative impact of FISP and the power of agricultural insurance to protect livelihoods and foster resilience. For the farmers receiving payouts, this program represents stability and peace of mind, allowing them to focus on the future with renewed confidence. Through this initiative, Zambia is setting a benchmark for sustainable agricultural practices and paving the way for expanded coverage in future farming seasons.

"As we celebrate today’s historic payout, we look forward to scaling this initiative further to reach even more farmers across Zambia. This is not only an investment in our farmers but also in the food security and economic prosperity of Zambia," added Thomas Njeru.

The event provided a platform for key stakeholders, including government representatives, insurance partners, and farmers, to share their experiences and discuss the positive impacts of the FISP program. A ceremonial payout cheque was presented to the farmers as a testament to the success of this innovative approach to agricultural insurance.

Building a Resilient Future

Zambia’s FISP program, supported by Pula Advisors and a consortium of partners, is a shining example of what can be achieved through collaboration, innovation, and commitment to resilience. As climate change continues to impact agriculture globally, Zambia is taking proactive steps to secure the future of its farmers, making this event not only a celebration but a call to action for continued investment in climate-resilient agriculture.