The Ministry of Agriculture has signed a Memorandum of Understanding (MoU) with the United Nations Development Programme (UNDP) and the Association of Ethiopian Insurers (AEI) to establish an all-inclusive agricultural insurance system for smallhold farmers. The agreement aims to assess climate and market risks that continue to threaten the sector, which contributes 32pc of the country's GDP and employs nearly two-third of the population. The partnership focuses on improving risk data, designing farmer-centred insurance products, expanding technical training, and operationalising the national Multi-Purpose Risk Sharing Platform. State Minister Sofia Kassa (PhD) described the deal as a pivotal move to strengthen resilience in a country where agricultural insurance coverage stands below 0.4pc. UNDP and AEI representatives stated that the collaboration will consolidate scattered pilot projects into a coordinated national framework, forming part of Ethiopia's effort to scale climate-resilient, farmer-focused insurance nationwide.

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