ADDIS ABABA – The Ministry of Agriculture (MoA) has urged citizens, particularly pastoralists and semi-pastoralists to purchase Index-Based Livestock Insurance (IBLI) to protect their livestock from the growing threat of drought.
Speaking at a media briefing yesterday, the De-Risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa Project (DRIVE),Program Manager Jemal Aliye highlighted that 90% of Ethiopia’s livestock export earnings come from pastoralist and semi-pastoralist regions. These areas are critical to the country’s economy but are increasingly vulnerable to recurring droughts and other challenges.
Jemal called on pastoralists to take advantage of the insurance, which provides financial support during times of scarcity by covering the cost of feed, medicine, and other necessities for livestock, including cattle, goats, sheep, and camels.
Ethiopia has 187 pastoralist and semi-pastoralist districts, with livestock insurance currently available in 70 districts identified as drought-prone. Over the past 12 years, 20,000 livestock insurance policies have been purchased, though Jemal noted the average annual uptake has been only 500 to 600 policies. He stressed that expanding insurance participation is crucial for protecting livestock, promoting savings, and ensuring the stability of the livestock market.
“If drought hits at 100% severity, an insured household could receive up to 70,000 Birr in compensation,” Jemal explained. Livestock insurance is also available in four other Horn of Africa countries, with the current purchasing period open until September 30.
The government, in partnership with other stakeholders, continues to subsidize insurance premiums to protect households and farmers from the economic impacts of drought.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD FRIDAY 20 SEPTEMBER 2024
