Global professional services firm AON PLC, the African Development Bank (AfDB), and Nairobi-based tech innovator Amini have teamed up to revolutionize crop insurance, support smallholder farmers, and drive nature-positive practices across the continent.
This collaboration aims to harness cutting-edge farm-level data provided by Amini, empowering AON and AfDB’s Africa Climate Risk Insurance Facility for Adaptation (ACRIFA) to develop ground-breaking de-risking solutions.
The partnership target is to assist AON’s clients in navigating the intricate impacts of climate risk, particularly those with extensive agricultural supply chains or substantial exposure to the sector.
“AON is at the forefront of transformational innovation, supporting our clients as they face increasing climate risks. Risk capital is a vital component of the climate transition and insurance stakeholders needs to innovate faster to address the world’s rapidly changing needs. said Eric Andersen, president of AON.
Despite Africa’s abundant uncultivated arable land, accounting for 65% of the world’s total, it only contributes 3% to the global GDP, according to the AfDB and the Organization for Economic Co-operation and Development (OECD) reports.
Data scarcity has stymied the growth of agricultural crop insurance, hindering the Agri-food sector’s expansion and impeding climate adaptation through regenerative farming practices. The vulnerability of Sub-Saharan African smallholder farmers to extreme weather events is alarming, with only 3% benefiting from effective crop insurance.
Regenerative agricultural practices emerge as a viable solution, promising improved flood and drought resilience, enhanced crop health, and bolstered yields. The ripple effect extends beyond agriculture, encompassing amplified carbon sequestration and reduced supply chain volatility.
Kate Kallot, Amini’s CEO, emphasized the partnership’s potential to drive sustainability practices among global companies, fortify supply chain resilience, and transform food systems at a global scale.
“Together, we have a unique opportunity to kickstart positive feedback loops which will transform global food systems and support the regeneration of natural capital at scale,” she added
