Nairobi, Kenya, April 22, 2013—IFC,
a member of the World Bank Group, announced that a Kenyan partner of the
Global Index Insurance Facility (GIIF), a program managed by IFC and jointly
implemented with IBRD, reached a major milestone in April 2013 in improving
income security for 100,000 farmers by providing them with insurance against
The milestone was reached through the work of Kilimo Salama, a social enterprise
launched by the Syngenta Foundation for Sustainable Agriculture with the
support of GIIF. Started with only 185 farmers in Kenya in 2009, Kilimo
Salama allowed farmers to insure as little as a bag of seeds, and its agricultural
insurance program was the first in the world to reach smallholder farmers
using mobile technologies. Today it has insured 60,000 farmers in Kenya,
and 40,000 farmers in Rwanda.
This innovative program is primarily funded by the
European Union. The governments of Japan and the Netherlands are also providing
additional support for further countries.
GIIF provided the Syngenta Foundation
$2.4 million to pilot an index insurance market in Kenya.
The high level of interest in this product demonstrates that index insurance
markets are scalable and sustainable in Africa. Rwanda’s Minister of Agriculture
and Animal Resources, Agnes M. Kalibata, found through a recent study that
there is great potential for index insurance in Rwanda.
“We estimate that we can reach more than 300,000 farmers within the first
three years," Kalibata said.
An added benefit of index insurance is access to financing, including credit
and loans. Over 30,000 Kilimo Salama farmers in Kenya were able to access
$5.5 million in financing because they had insurance. That’s big news
in Africa where only one percent of the credit market is devoted to agriculture.
David Crush, IFC Manager for Access to Finance Advisory Services in Sub-Saharan
Africa, said, “The Syngenta Foundation and GIIF partnership has been very
successful in creating increased economic security for farmers in East
Africa, and we expect it to serve as a model that can be replicated in
GIIF has so far provided insurance to a total of 160,000 farmers in Sub-Saharan
Africa, and a total of 228,000 farmers, pastoralists and microentrepreneurs
The Global Index Insurance Facility is a multi-donor trust fund supporting
the development and growth of local markets for indexed/catastrophic insurance
in developing countries, primarily in Sub-Saharan Africa, Latin America
and the Caribbean, and South Asia. GIIF’s objective is to expand the use
insurance as a risk management tool in agriculture, food security and disaster
risk reduction. The facility is managed by IFC and jointly implemented
with the World Bank.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
For more information on the Syngenta Foundation for Sustainable Agriculture,
please see http://www.syngentafoundation.org/