Following continuous decline in agricultural productivity due to climate change, African governments should set up projects and work with reinsurers/insurers to protection for the agricultural sector.
Deputy Managing Director/Chief Operating Officer of African Reinsurance Corporation, Mr. Ken Aghoghovbia, who made the assertion, noted that agriculture supports 55 to 62 per cent of the labour force in sub-Saharan Africa alone.
Speaking at the Africa Financial Industry Summit, AFIS, in Lomé, Togo, Aghoghovbia stated that extreme weather events are becoming common in sub-Saharan Africa.
He said: “Extreme weather events are becoming common in sub-Saharan Africa. These events such as floods and droughts affect over 40 per cent of the region’s population and impact the production of its staples like maize, and rice thereby reinforcing the poverty cycle for the most vulnerable people.
“Agriculture supports 55 to 62 per cent of the labour force in sub-Saharan Africa alone, and the continent’s agricultural productivity growth has declined by 34 per cent since 1961 due to climate change. The insurance industry therefore needs to put stronger focus on protecting the agriculture value chain, including crops and livestock systems. ‘‘Governments should set up projects such as the Livestock Productivity and Resilience Support Project, L-PRES, in Nigeria, and work with re/insurers to develop insurance protection. Again, this emphasises the need for co-creation of climate risk solutions with multiple stakeholders.”