AFC Holdings, partnered with a consortium of insurance companies and the Government of Zimbabwe to run a pilot project on Area Yield Index Insurance for farmers who received Pfumvudza inputs in the 2021/2022 Season in Rushinga and Mwenezi districts. The project was monitored and evaluated through the assistance of PULA, a technical advisor on Area Yield Index Insurance. A combined pay-out of just over US$123 000.00 was paid to farmers in Rushinga and Mwenezi districts. The pay-out was made to participating households whose yields fell below the average anticipated yield for each area.
Area Yield Index Insurance compensation is based on the realized average yield of an area, not the actual yield of the insured party. Losses are paid if the realized yield for the area is less than the insured yield regardless of the actual yield to an individual policyholder. The inclusion of the Area Yield Index Crop Insurance in the basket of inputs for Pfumvudza/Intwasa smallholder farming beneficiaries was meant to protect the farmers from the heavy impact of climate change and unforeseen losses that often befall farmers.
Officiating at the pay-out event, held in Rushinga District, Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Dr John Basera said, “The Pfumvudza/Intwasa inputs Insurance Pilot Programme has been a success and we look forward to rolling out the programme to all beneficiaries of the Pfumvudza/Intwasa scheme in due course. AFC Insurance Company has a major role to play in cushioning all farmers against climate-related risks and we will continue to support them.”
Following the presentation of the cheque, AFC Holdings Group Chief Executive Officer, Mr Francis Macheka said, “AFC Insurance company is pleased to be part of the nation’s journey towards driving food security and pushing forward Vision 2030 and we are embarking on a rapid growth programme which will see AFC Insurance Company having nationwide presence in all provinces and districts by the end of 2023, leveraging our existing branch network. Plans are underway to expand this pilot beyond the two districts and ensure that insurance becomes an accessible product.”
AFC Holdings is geared to provide a one-stop shop for all commercial banking, leasing, credit, and insurance needs. These services are available through the Group subsidiaries namely AFC Commercial Bank, AFC Land and Development Bank, AFC Leasing Company and AFC Insurance Company.
“In addition to agriculture-related insurance covers, AFC Insurance provides coverage for everyday insurance needs such as fire, engineering, construction, motor, boat, home, and liability insurance” added Macheka.
Farmers and farmer unions expressed their excitement about the pilot, with host farmer Mrs Nhete saying “We used to think insurance was for the large and rich farmers in this country, but we are grateful to AFC and our Ministry that they are now including us smallholder farmers and women in this transformational projects”
AFC Insurance is licenced and regulated by the Insurance and Pensions Commission.