2023-05-27 17:30:00
ALGIERS – Insurance is an “important” link in the development of the agricultural sector in Africa and an “indispensable” tool to guarantee food security, in a context of major climatic risks, underlined Jean Baptiste Ntukamazina, secretary general of the African Insurance Organization (AIO), while welcoming the holding of the 49th AIO Conference and General Assembly in Algeria.
Speaking in an interview with APS, Mr. Ntukamazina, said that insurance was an “important” link in the development of the agricultural sector in Africa, noting that the share of agriculture in the gross domestic product (GDP) of African countries is on average between 30 and 50%, hence “the need to sensitize African farmers to subscribe to agricultural insurance in order to cover climatic and other risks, so as to increase the penetration of insurance in Africa”.
Deploring the low rate of subscription by farmers to agricultural insurance, estimated today at less than 2%, the Secretary General of the AIO observed that “African insurance companies were able to contribute to food security by covering the agricultural sector against all climatic risks and other hazards so as to mitigate their effects on farmers”.
“We are ready to work with the public authorities within the framework of inclusive policies, which will make it possible to participate in the fight against hunger, poverty and to achieve the objectives set in terms of food security”, he said. he specified, adding that “the massive insurance of the farmers will make it possible to generate financial resources necessary for the assumption of responsibility of the compensations in the event of disasters”.
In addition, the contribution of governments is also essential to promote agricultural insurance, he noted, citing, among other things, the granting of subsidies for insurance premiums and the development of regulations favorable to the development of this branch of insurance.
“African insurance companies also need reliable meteorological data enabling them to predict risks related to rainfall or drought”, he underlined.
The development of agricultural insurance also depends on raising awareness and taking certain incentive measures with regard to farmers, further noted the SG of the OAA, while recalling that this organization, which has more than 400 companies remains “a forum for reflection and proposals and a space for debate and sharing of experiences”.
Asked about the causes of the weakness of agricultural insurance in Africa, Mr. Ntukamazina explained that this is mainly due to the lack of insurance culture and poor management of financial resources.
The lack of awareness of the populations on the importance of insurance is also at the origin of this weakness, he also clarified.
In this context, the SG of AIO warned against the phenomenon of food insecurity having taken, according to him, “alarming proportions in Africa”, urging “African States to consider the agricultural sector as the real basis economic development, long before the exploitation of raw materials and hydrocarbons”.
Algeria, an example to follow in terms of agricultural mutuality
Furthermore, the SG of the AIO considered that the choice of the theme of “the contribution of insurance to the challenges of food security in Africa” for the 49th conference and the AIO, which is being held in Algiers from 27 to May 31 current, is “judicious” and will make it possible to discuss “the contribution of the insurance industry for the settlement of this question of food insecurity”.
While welcoming the Algerian authorities in passing for having agreed to host the work of the 49th annual conference and general assembly of the FAO, Mr. Ntukamazina considered that “agricultural mutuality in Algeria is more developed compared to other countries Africans”.
“Algeria has the experience in the field of agricultural insurance that it can really share with the rest of African countries. I do not see many successful experiences similar to that of the Algerian Mutual Fund agricultural (CNMA). This is a good example that should be followed by other African companies,” he said.
In this regard, the SG of the AIO announced the organization soon of a seminar in Algeria, in collaboration with the CNMA, which should allow to share its experience with other insurance companies on the continent.
Pending the holding of this meeting, a workshop on the theme of microinsurance will be led by the Director General of the CNMA, Chérif Benhabiles, on the occasion of the holding of the 49th conference and assembly of the OAA, a informed Mr. Ntukamazina, specifying that this workshop will see the presence of the leaders of African companies and will focus on the experience of Algeria in terms of agricultural insurance.
1685223780
#Agricultural #insurance #important #link #guarantee #food #security #Africa