Ghana insurance regulator, NIC and PolicyLINK Ghana have signed a Memorandum of Understanding (MoU) as part of efforts to address challenges in the agriculture sector and the need for adequate risk protection for Ghanaian farmers.
In order to provide farmers and other agriculture industry stakeholders with a vital safety net, the Memorandum of Understanding will guarantee the creation of an Agricultural Insurance Fund.
Acting Commissioner of Insurance, Micheal Kofi Andoh emphasized that the agriculture sector was the backbone of the country which continues to sustain the livelihoods of the population while contributing to the economy.
He did, however, draw attention to the many challenges that the agriculture industry faces, such as erratic weather patterns, pests, and illnesses that endanger farmers’ livelihoods and the nation’s overall food security.
Speaking at the signing of the MoU in Accra on October 31, the Acting NIC Commissioner said the setting up of the Agricultural Insurance Fund had become necessary to provide farmers with the much-needed resilience to bounce back from setbacks they may encounter.
“The fund will also give confidence to farmers, aggregators and other players in the agric value chain with the opportunity to invest in modern farming methods, techniques, high-quality inputs while expanding activity and enhancing productivity,” the Acting NIC boss said.
He said the MoU between the NIC and PolicyLINK Ghana is expected to yield significant benefits for the agriculture sector while adding that the two bodies will ensure that the Agriculture Insurance Fund will not become just a concept on paper but a tangible lifeline for farmers who continue to feed the nation.
Micheal Andoh in his concluding remarks commended PolicyLINK Ghana and other development partners for their willingness to embark on this project to provide Ghanaian farmers with the much-needed support to contribute towards a sustainable economy and mitigate risks.
“We remain committed to our desire of helping farmers mitigate climate-related risk and ensure the resilience of our agricultural sector,” he concluded.