A crop insurance premium worth one million dollars has been paid to a continental insurance entity, African Risk Capacity, ARC to safeguard farmers whose crops were affected by a dry spell this year.
A crop insurance premium worth one million dollars has been paid to a continental insurance entity, African Risk Capacity, ARC to safeguard farmers whose crops were affected by a dry spell this year.
The initiative is being funded by Global Shield Solution Platform (GSSP) an international non-profit organization that aims to increase protection for vulnerable people.
Madam Charlotte Norman, the Director for Climate Change Adaptation and Disaster Risk Reduction at the National Disaster Management Organisation said this at a side event organised by the GSSP at COP29, Baku, Azerbaijan.
Madam Norman said the GSSP would support paying the crop insurance premium for the next three years after which the government would be expected to continue
She explained that working with other relevant stakeholders, a database had been established to facilitate the registration and payout process as indicated in the contingency plan.
The payment by GSSP provided a financial buffer, where funds would be made available after a drought to help stabilise the economy and reduce the need for emergency budget reallocations.
It would allow for more predictable and planned responses to droughts rather than relying on uncertain financial aid or emergency funding.
Madam Norman who is also the Government Coordinator for the ARC Programme said with timely financial support available, households would be less likely to resort to negative coping strategies such as selling assets or reducing food intake.
Ghana, she said, was the first country to have requested for the support in sub-Saharan Africa and was the first beneficiary.
“Aside from the crop insurance, they have supported Ghana to develop a product which would cater for flood in Greater Accra.
“And all we need is to put that product on the market because the product was developed by us in Ghana. We are actually defining what we want, the costs, everything in that product is country tailored,” she said.
Ghana recorded a shortage in cereals this season due to dry spells in the Northern parts of Ghana which led to the loss of livelihood of farmers. The dry spell has resulted in significant losses for farmers, with an estimated investment loss of GH¢ 3.5 billion and a revenue loss of GH¢10.4 billion.
Mr Lesley Ndlovu, the Chief Executive Officer of African Risk Capacity (ARA) Limited said since its inception in 2012, more than $230 million in claims had been paid to countries.
GNA
