The TEMBO Africa Project, funded by the European Union, has been implemented in partnership with several institutions, including Delft University of Technology, the University for Development Studies, and the Ghana Meteorological Agency. The project's goal is to educate insurance companies and brokers on agricultural insurance, enabling them to develop products tailored to the needs of Ghanaian farmers. A two-day online engagement was held, attended by participants representing various insurance companies operating in Ghana.
The programme, organised under the TEMBO Africa Project, was hosted by the Ghana Insurance University College and the Ghana Agricultural Insurance Pool. The topic of discussion was "Introduction to Agricultural Insurance in Ghana: An Overview of the Agricultural Insurance Value Chain." Mr. Kwabena Akuamoah Agyekum, Executive Director of the Chartered Institute of Marketing, Ghana, facilitated the session and educated participants on agricultural insurance.
Mr. Agyekum explained that agricultural insurance is a risk management tool that protects farmers, agribusinesses, livelihoods, and production investments, while reducing financial losses, promoting food security, and strengthening national food sovereignty. He noted that smallholder farmers continue to face climate-related challenges, including drought, erratic rainfall patterns, and excessive rainfall. Mr. Agyekum cited an example of a farm in Yendi that had germinated but had a terrible yield due to climate-related issues.
Agriculture remains a major contributor to Ghana's economy and livelihoods, accounting for about 21 per cent of Gross Domestic Product and employing approximately 35 per cent of the national workforce. However, farmers face significant risks arising from climate variability, limited irrigation infrastructure, disease outbreaks, and market uncertainties. Mr. Agyekum advised farmers to complement efforts to expand their farms with measures to protect their investments through insurance.
Mr. Agyekum emphasised the need for intensified public education and sensitisation, particularly among smallholder farmers, to improve understanding of the benefits of agricultural insurance. He identified key stakeholders within Ghana's agricultural insurance ecosystem, including farmers, insurance companies, and government agencies. Mr. Agyekum also touched on the evolution of agricultural insurance in Ghana, which has transitioned from traditional informal risk-sharing arrangements to modern insurance products.
Mr. Samuel Orison Yarney, Marketing Officer of the Ghana Agricultural Insurance Pool, discussed the Germination Index Insurance, an innovative product designed to protect farmers against seed germination failure caused by prolonged drought or excessive rainfall. The product has been piloted among maize, soybean, and rice farmers in the Northern and Upper West regions to enhance climate resilience among smallholder farmers.
The TEMBO Africa Project aims to enhance climate resilience among smallholder farmers and promote food security in Ghana. Key stakeholders are working together to develop and implement agricultural insurance products that can mitigate the effects of climate change on agricultural production. The project's success is expected to contribute to national development and growth.
Key points
- The TEMBO Africa Project aims to educate insurance companies and brokers on agricultural insurance.
- Agricultural insurance can help build resilience and confidence within the agriculture sector.
- The project has piloted an innovative insurance product, the Germination Index Insurance, to protect farmers against seed germination failure.
