Lusaka – As Zambia celebrated Farmer’s Day, highlighting the backbone of its economy, insurance giant Hollard has underscored the critical role of risk management in safeguarding the sector’s future. With climate change intensifying weather patterns and threatening food security, the company believes that insurance is no longer a luxury but a necessity for Zambia’s farmers.
“The long-term sustainability of Zambia’s agricultural sector, and by extension its socio-economic development, hinges on adequate insurance coverage,” said Choolwe Sianyinda, Chief Operating Officer of Hollard. “We are facing a perfect storm of climate change, economic challenges, and a growing population. Insurance is the safety net that can protect our farmers from these risks.”
Agriculture is the lifeblood of Zambia, employing over half the population and feeding millions. It’s also a key exporter and a catalyst for other industries. However, the sector is increasingly vulnerable to the whims of nature. The UN’s Food and Agriculture Organisation (FAO) warns that climate change could exacerbate Africa’s food crisis, a stark reality for a continent heavily reliant on rain-fed agriculture.
Hollard is stepping up to the plate. The insurer is not only offering traditional indemnity-based insurance for commercial farmers but also index insurance for smallholders, a model that pays out based on predetermined weather conditions. This innovative approach is designed to reach the backbone of Zambia’s agricultural sector.
“We believe in the power of partnerships,” said Sianyinda. “By collaborating with financial institutions, government agencies, and technology providers, we can create a robust insurance ecosystem that supports farmers at every level.”
Hollard’s commitment is evident in the numbers. The company has paid out millions in claims to farmers in recent years, a testament to the impact of its policies. But Sianyinda believes this is just the beginning.
“We want to see more farmers transition from subsistence to commercial farming. We want to equip them with the tools and knowledge to thrive, not just survive,” he said. “Insurance is a vital part of that equation.”
As the World Bank predicts a grim future for food security in sub-Saharan Africa, the urgency to protect Zambia’s agricultural sector has never been greater. Insurance, once seen as a costly overhead, is now recognized as a strategic investment.
“The current drought is a stark reminder of the risks our farmers face,” said Sianyinda. “It’s time to turn these challenges into opportunities. By prioritizing insurance, we can build a more resilient and prosperous agricultural sector for Zambia.”
With a clear vision and a strong commitment, Hollard is positioning itself as a key player in shaping the future of Zambian agriculture. As the country navigates the complexities of climate change and economic growth, insurance is emerging as a powerful tool for ensuring a sustainable and food-secure future.
