ADDIS ABABA—Ethiopia has officially launched a nationwide agricultural insurance program aimed at transforming the lives of farmers, enhancing agricultural productivity, and strengthening food security across the country.
The program was unveiled at a launching ceremony yesterday attended by key stakeholders in the agricultural and insurance sectors.
Pula in Ethiopia Country Director Dagmawi Haileyesus stated that the initiative brings together five insurance companies Abay, Nyala, Africa, Ethiopian Insurance Corporation and Oromia Insurance to form a consortium focused on providing agricultural insurance that covers input-related risks and climate change-induced disasters.
“Due to climate change, many farmers are experiencing significant losses,” said Dagmawi. “Pula is working to improve the livelihoods of one million farmers by connecting them with local insurance providers to ensure they benefit from agricultural insurance.”
He also noted that the consortium is collaborating with the Ethiopian Agricultural Transformation Institute, regional agriculture bureaus, and insurance companies to bridge the gaps in the sector and build resilience among smallholder farmers.
The Ministry of Agriculture Rural Financial Services Head Getachew Mekonon emphasized that the new program marks a major step in addressing long-standing challenges faced by farmers. “This is a significant milestone in achieving food security and mitigating agricultural risks,” he said. “We are committed to advocacy and institutional reform to help scale up this initiative and bring real change to farmers’ lives.”
The Association of Ethiopian Insurers President Yared Molla reiterated the insurance industry’s commitment to supporting smallholder farmers. “We are striving to contribute to poverty alleviation, advance inclusive insurance, and transform agricultural insurance in Ethiopia,” he said.
The National Bank of Ethiopia (NBE) Insurance Supervision Director Belay Tulu highlighted the importance of sustaining rural livelihoods and expanding insurance coverage. “This program is the beginning of a long journey toward agricultural transformation,” he said. “We must work closely with the Ministry of Agriculture and both public and private insurers to ensure sustainability. It is vital to expand the scope, offer affordable solutions, and provide timely compensation for crop losses.”
State Minister of Finance Semerta Sewasew stated that the launch aligns with the government’s broader macroeconomic reform agenda. “We need to reach larger segments of the population and finance insurance subsidies ourselves rather than relying solely on development partners,” she said.
The program is technically supported by Pula, an international organization specializing in agricultural insurance solutions.
This collaborative initiative is expected to enhance resilience in the agricultural sector, encourage innovation, and provide a critical safety net for Ethiopian farmers as the country grapples with climate-related challenges and economic reform.
BY MISGANAW ASNAKE
THE ETHIOPIAN HERALD FRIDAY 4 JULY 2025
