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Building a Stronger Foundation for Resilience

Social enterprise
Why systemic market failures in African insurance markets make it nearly impossible for smallholder farmers to achieve resilience, and what philanthropy and the private sector can do about it.
By Claire McGuinness, Matthew Forti, Hassan Bashir & Johannes Borchert

Adapting to climate change is a complex challenge for smallholder farmers. There are no silver bullets. Adaptation requires a diverse, robust set of tools. Certain of those tools - farm design strategies such as agroforestry and soil remediation - are widely recognized and, presently, contribute effectively toward improving African smallholder farmers’ resilience to shifting weather patterns. 

However, agricultural insurance, a common and readily available protection enjoyed by farmers in the Global North, is underutilized and often inaccessible to those that would benefit from it the most. Without financial safety nets, these farmers often face devastating losses that can impact entire communities, reinforcing cycles of poverty and entrenching food insecurity. As global discussions on climate funding continue, it is crucial that we recognize insurance as a vital component of our forward-looking strategy. 

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