JICA Launches Index-Based Crop Insurance

Apr 20 , 2019


The Japan International Cooperation Agency has launched the Index-Based Crop Insurance Promotion Project for Rural Resilience Enhancement at a cost of 6.5 million dollars. The Agency is partnering with the Ministry of Agriculture and the Oromia Bureau of Agriculture and Natural Resources for the project. The project will be implemented in Shewa, Arsi and Harerge zones and will benefit around 17,500 farmers in 130 kebeles. The Agency, aside from funding, will also provide technical support for the project, which is expected to last until 2024. Index insurance is insurance that is linked to an index, such as rainfall, temperature, humidity or crop yields, rather than an actual loss. The approach is used to solve some of the problems that limit the application of traditional crop insurance in rural parts of developing countries. The project will work on developing institutional capacities and resilience enhancement packages, which consist of agricultural risk control activities such as cultivation methods, crop diversification and risk finance measures. The Agency also plans to promote index-based crop insurance nationwide and train professionals


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