Frankfurt School of Finance & Management, as implementing agency of the InsuResilience Solutions Fund (ISF) today signed a grant funding agreement with the InsurTech company Pula and Ghana Agricultural Insurance Pool (GAIP) to design and implement climate risk insurance products. The partnership aims to improve the productivity and agricultural risk resilience of smallholder farmers in Ghana.
The project aims to provide affordable climate risk insurance solutions to farmers, covering a wide range of risks such as drought, flood and plant disease that affect the harvest significantly. In collaboration with GAIP, as well as other local partners from the agricultural sector the insurance will get into farmers’ hands. The insurance product in Ghana will be bundled with certified high-quality inputs, such as seeds and fertiliser from providers that smallholder farmers already know and trust, supplemented by tailored agronomy advice. To reach beneficiaries across Ghana the project innovates new data-driven solutions and delivery mechanisms.
With the support of ISF and strong public and private sector partnerships, Pula will build the basis for a scalable and sustainable model to adapt to climate change. This will pave the way not only to boost and promote agricultural productivity but also to protect the livelihoods of smallholder farmers and demonstrate the use and benefit of climate risk insurance, which will enable them to respond effectively to risks and climate change.
Agriculture as economic support in Ghana
Agriculture is the economic backbone of Ghana, contributing to a large share of GDP and employing over 50 percent of the workforce, most of them smallholder farmers. The country´s agriculture is predominantly traditional and rain-fed, resulting in high dependency on weather conditions, such as natural rainfall cycles. Rising temperatures, longer dry spells and more intense heavy rainfall make the farmers vulnerable to climate risks. The lack of access to financial services such as credit and insurance, as well as to mechanisation and extension services, such as fertilisers and improved seeds, are additional challenges Ghanaian smallholder farmers’ face. The risk and negative livelihood impact of an insufficient or failed harvest can be enormous for a smallholder household.