he African Risk Capacity, a specialised agency of the African Union, said Tuesday it will extend insurance covers to the continent’s agriculture and green energy sectors.
Lesley Ndlovu, CEO of African Risk Capacity told a continental forum in Nairobi, the capital of Kenya, that it will provide insurance to cover losses for farmers against common weather-related areas of drought, floods, and tropical cyclones.
“We cover staple crops such as wheat and maize, cash crops including cocoa and livestock products to boost food security in Africa,” Ndlovu said during the 48th Africa Insurance Organization Conference.
Currently, 35 African Union member states have joined the African Risk Capacity.
Ndlovu said that insurance covers aim to enable natural disasters affected populations to have the financial means to rebuild following a catastrophe.
“Our role is to complement government efforts which are the largest investor in the agricultural sector through various subsidy programs and also to protect the most vulnerable communities,” he noted.
The pan-African body provides insurance covers to agricultural producers through governments, humanitarian agencies, and also directly to farmers through local partners.
Ndlovu revealed that his agency will provide insurance covers to increase access to renewable power sources in Africa.
He said that Africa’s energy sector requires catalysts given the region’s huge electricity production deficit.
“We will work to boost the production of solar, wind, and hydropower sources,” he added.