Solution by: Agriculture and Climate Risk Enterprise, Syngenta Foundation
Micro-Insurance for Protecting Smallholders The Agriculture and Climate Risk Enterprise (ACRE) makes use of automated weather stations, satellite data, and mobile technologies to bring affordable insurance to smallholder farmers in East Africa.
TE C LI M A IT F E BEN
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SOCIAL ACRE is projected to reach three million farmers across East Africa by 2018, bringing greater security in the face of climate change. 5
THE TRIPLE BOTTOM LINE
ENVIRONMENTAL With its 130 solar-powered automated weather stations, ACRE can operate without sending inspectors to remote villages to physically verify each claim.
Offering a variety of insurance products tailored to smallholders’ needs, ACRE has become the largest agriculture insurance programme in sub-Saharan Africa and the first to leverage mobile technologies to reach smallholders.1 By tackling weather-related repayment risk, its activities have also paved the way for accelerated growth by inviting credit institutions to enter the agricultural lending market. 2 For example, its replanting guarantee product involves farmers paying an insurance premium on the price of a bag of seeds containing a scratch card with a code. Texting the code to ACRE activates drought insurance coverage, which takes place by monitoring conditions on the farm via satellite imagery for 21 days. In case of drought, farmers are automatically compensated via a mobile payment system. WHY A SUSTAINIA100 SOLUTION? Over 96% of agricultural land in Kenya and Rwanda is rain-fed and vulnerable to unpredictable rainfall or drought. Consequently, fi nding viable and cost-effective methods of managing this risk is of great importance to food security and economic stability. This solution offers an approach capable of reaching thousands of remote farmers without amassing high transaction or
ECONOMIC Studies of ACRE’s impact show that insured farmers received 16% higher earnings and invested 19% more than the uninsured.6
DEVELOPED IN ...
SWITZERLAND, KENYA DEPLOYED IN ...
KENYA, RWANDA, AND TANZANIA
CCAFS. “Scaling Up Index Insurance for Smallholder Farmers: Recent Evidence and Insights.” Report. 2015.
IFC. “Agriculture and Climate Risk Enterprise (ACRE).” Online.
IFAD. “Viewpoint: Smallholders Can Feed the World.” February 2011. Online. 4
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