Some of the world’s poorest farmers are also those most affected by climate change. Now, One Acre Fund is introducing a reinsurance facility meant to safeguard smallholder farmers when climate disasters strike.
One Acre Fund Re, which was announced last month, aims to provide a financial safety net for more than 1 million smallholder farmers in Africa in 2024 and at least 4 million by 2030. It will cover crop damage from extreme weather events such as droughts and floods, incidences of which are on the rise.
Smallholder farmers — whose farms consist of one to two hectares — feed the vast majority of sub-Saharan Africa. Despite increasing climate risks such as erratic rainfall and soil erosion, subsidized agri-insurance is only available in four of Africa’s 54 countries, according to One Acre Fund’s research. Only 3% of African farmers currently have insurance coverage for their farms. This is due to a few reasons: high prices, lack of knowledge about insurance options, and lack of trust.
About the author
Rebecca Holland
Rebecca Holland is a reporter currently based in Louisiana. Her work has appeared in The Washington Post, The Guardian, The Independent, The Advocate/Times-Picayune, and more. She was a Pulitzer fellow in 2021 and has reported from dozens of countries. Previously, Rebecca was based in Iraq and Jordan.
