By: Aminata Sesay
The Ministry of Agriculture and Food Security (MAFS), in partnership with the United Nations Capital Development Fund (UNCDF) and other stakeholders, has validated a proposed National Agricultural Insurance Policy aimed at reducing farmers’ production risks and improving their access to finance.
The proposed policy was validated during a stakeholder meeting held at the Bintumani Hotel in Freetown as part of efforts to strengthen resilience in Sierra Leone’s agricultural sector and support the implementation of the Government’s Feed Salone agenda.
Minister of Agriculture and Food Security, Dr. Henry Musa Kpaka, said the policy, once finalized, will be submitted to Cabinet for approval before implementation begins in collaboration with relevant stakeholders.
Dr. Kpaka disclosed that priority agricultural value chains have already been identified for piloting during the initial phase of implementation.
He described the proposed Agricultural Insurance Policy and the Agricultural Finance Policy as complementary instruments that could help transform the country’s agricultural sector.
According to Dr. Kpaka, effective agricultural insurance could reduce the risks faced by both farmers and financial institutions, thereby increasing the confidence of banks and other lenders to provide financing to farmers.
He said improved access to finance could encourage greater investment in agriculture, increase productivity and contribute to sustainable growth in the sector.
The Lead Consultant for the policy development process, Ayandev Saaha of K.M. Dastur & Company Limited, said the development process involved consultations with key stakeholders across the agricultural and financial sectors.
Saaha said agricultural insurance could help farmers manage production risks while giving them greater confidence to sustain and expand their farming activities.
He also highlighted the potential of insurance to improve farmers’ access to agricultural financing, particularly where financial institutions remain concerned about the risks associated with agricultural production.
During the validation session, stakeholders welcomed the proposed policy and called for effective implementation once it receives the necessary approval.
They also stressed the need for government support to encourage farmers to adopt agricultural insurance, including consideration of an insurance premium subsidy, particularly during the early stages of implementation.
Stakeholders said such support could make insurance more affordable and encourage wider adoption of insurance coverage across the agricultural sector.
The proposed policy is expected to provide a framework for expanding agricultural insurance coverage and strengthening farmers’ capacity to manage production-related risks.
Following the validation process, the policy will be finalized and submitted to Cabinet for consideration and approval. Implementation is expected to begin with selected priority agricultural value chains.