Wednesday, January 27, 2016

Ethiopia mauls plans to insure its agricultural sector

The Ethiopian government is considering insuring the country’s agriculture sector so as to manage risks in time of drought, APA learns here on Tuesday.

Speaking during talks he held talks with a Swiss-based insurance company, Swiss Re, on ways of getting agricultural insurance on Tuesday, the Ethiopia’s Prime Minister Hailemariam Desalegn was quoted as saying that insuring the agriculture sector is important for Ethiopia which suffered from climate change induced drought so as to manage agricultural risks.

According to information released by the government, over 10.2 million people are in need of emergency food assistance, because of the El Nino induced drought. Low aid flow made the situation more challenging,
This has therefore made it imperative for the Horn of Africa nation to search for alternatives that will enable it cope with such incidents in the future.

If Ethiopia managed to insure its agriculture, that will enable it to feed the needy in case of drought without waiting for donations.

Agreeing on the idea, the Premier said that the insurance will be operational following dialogue. The company will send a delegation to Ethiopia for consultations and to make assessment, CEO of Agricultural Transformation Agency Kalid Bomba said.

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