NAMFISA agri-index gaining traction

A four-member delegation from the World Bank is visiting Namibia to provide technical support on the first-ever envisaged Agri-Index Insurance for Namibia, coordinated by the Namibia Financial Institutions Supervisory Authority (NAMFISA). The objective of the World Bank mission is to advise Namibian Government stakeholders on the design and implementation of an index-based agriculture insurance program targeting small-scale farmers especially in rural and communal areas. The World Bank technical assistance focuses on three areas, namely:

• Understanding the areas and cost of major disasters and public sector support to mitigate the impact of these disasters,

• Identifying data and other infrastructure investment required to support an effective the program, and

• Understanding how to effectively work with the private sector, learning from past pilots in Namibia. The technical assistance from the World Bank is expected to advise the Namibian Government’s legal, regulatory and policy actions towards strengthening the financial resilience of small-scale farmers in Namibia to disaster risk.

Additionally, the team that is hosted by NAMFISA is expected to enhance the knowledge and understanding of agriculture risk financing solutions among key stakeholders, thereby enabling them to make informed policy and investment decisions.

NAMFISA’s CEO Kenneth Matomola explains, “The objective of Agri-index Insurance is to benefit small scale farmers in Namibia to mitigate potential losses of agriculture produce due to increased effects of climate change and promote financial inclusion as well as help government reduce the financial burden borne”. Matomola stressed it will assist vulnerable small-scale and communal farmers to become resilient to the effects of climate change on crops and livestock by aiding the development of Agri-Index Insurance products and services that are easily accessible and affordable.

Expectations

Responding to a question as to the make-up of the delegation and what the visiting Word Bank team is expected to achieve, the head of the World Bank delegation to Namibia, Ajai Nair, Senior Financial Sector Specialist, had this to say. “My team includes Qhelile Ndlovu, Disaster Risk Finance Specialist; Andrea Stoppa, Agriculture Insurance Specialist; and Chris Hoveka, Country Engagement Coordinator. The team had productive engagements with a wide range of stakeholders over the past week and we expect to provide useful recommendations to the Namibian government, through NAMFISA to help develop national Agri-Index Insurance program.”

NAMFISA has to date identified relevant key stakeholders and continues to coordinate the efforts in the development of the platform where both private and public sector players come together to discuss and share ideas on the possible solutions towards the development and custom design of Agri-Index Insurance products and services. The Authority that has been creating awareness on the envisaged Agri-Index Insurance, has advised the Ministry of Finance and related key ministries on the role they can play in supporting and facilitating the drive towards national agriculture policy change and implementation.

The Authority continues to engage stakeholders and create awareness for the need of the financial and social protection for vulnerable small-scale famers by ensuring access to financial services and products as advocated by the Namibia Financial Sector Strategy’s (NFSS) objective of financial inclusion; and in return promote social and economic sustainability.