Publication: Namibia Agriculture Disaster Risk Finance and Insurance Diagnostic
Loading...
Published
2024-02-20
ISSN
Date
2024-02-20
Editor(s)
Abstract
This diagnostic report was prepared in response to a technical assistance request from the Government of the Republic of Namibia (GRN) to support the design and implementation of an index-based agriculture insurance program targeting small-scale farmers. Based on initial consultations with the Namibia Financial Institutions Supervisory Authority (NAMFISA), the nonbank financial regulator and lead counterpart, it was agreed to expand the scope of the diagnostic to include disaster risk finance (DRF), but still with a focus on the agriculture sector. This was done given both GRN’s interest in protecting both group of farmers and the increasing consensus that agriculture insurance programs, particularly those that focus on smallholders, are best designed within a broader framework of DRF. This is the case since only smallholder farmers linked to the market can be reached effectively through agriculture insurance programs, while subsistence farmers would need to be protected using other instruments. Further, even among smallholders who can be reached through agriculture insurance, some risks cannot be viably transferred to agriculture insurance markets. The report is structured as follows: chapter 1 presents an overview of the macro- and socioeconomic environment, financial sector, agriculture sector, and agriculture finance landscape in Namibia. Chapter 2 presents an overview of DRF, Namibia’s exposure to disasters, particularly for the agriculture sector, and their impact and discusses Namibia’s institutional framework and current approach to DRF. Chapter 3 presents an introduction of agriculture insurance, the agriculture insurance landscape in Namibia, and the diagnostic’s findings. Lastly, chapter 4 presents the diagnostic’s recommendations and suggested next steps.
Link to Data Set
Citation
“Nair, Ajai; Maher, Barry; Ndlovu, Qhelile; Stoppa, Andrea; Hoveka, Chris. 2024. Namibia Agriculture Disaster Risk Finance and Insurance Diagnostic. Equitable Growth, Finance and Institutions Insight - Finance. © World Bank. http://hdl.handle.net/10986/41086”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Disaster Risk Financing and Insurance in Sub-Saharan Africa(Washington, DC, 2012-11)This policy note is a preliminary effort to present a body of knowledge on the state of disaster risk financing and insurance in Sub-Saharan Africa. It aims to contribute to a strengthened understanding and collective knowledge within Sub-Saharan Africa on disaster risk financing and insurance, and to encourage open dialogue between stakeholders on how strategies can best be developed to increase financial resilience against natural disasters. The report is targeted at policy-makers and actors in the international community with an interest in this agenda. In the context of this report, disaster risk financing and insurance refers to instruments and mechanisms at the macro, market and micro level that provide financial resources to assist with response and recovery efforts in the aftermath of a disaster. This report focuses on natural disasters, which we can describe as unforeseen events driven by natural phenomena that cause serious disruption of the functioning of a community or a society causing widespread human, material, economic and/or environmental losses which overwhelm the capacity of the affected community or society. This report discusses rapid onset disasters such as cyclones, earthquakes and floods but also slow onset events such as drought. Sub-Saharan African countries are highly exposed to a wide range of adverse natural events, with hydro-meteorological hazards impacting the largest number of people. Disaster risk financing and insurance (DRFI) has been highlighted by the African union, regional economic communities and individual countries as an area for regional financial cooperation.Publication Advancing Disaster Risk Financing and Insurance in ASEAN Member States : Framework and Options for Implementation, Volume 2. Technical Appendices(Washington, DC, 2012-04)This report is part of a project being jointly conducted by the World Bank, the Global Facility for Disaster Reduction and Recovery (GFDRR), the Association of Southeast Asian Nations (ASEAN) Secretariat, and United Nations International Strategy for Disaster Reduction (UNISDR). It aims to provide capacity building on disaster risk financing and insurance (DRFI) in ASEAN Member States. DRFI is a relatively new topic and, therefore, training and capacity building of local stakeholders is essential. Governments must understand the benefits and the limitations of disaster risk financing and insurance as part of their comprehensive Disaster Risk Management (DRM) strategies. This report presents main findings and recommendations on DRFI in the ASEAN region. Following the World Bank disaster risk financing and insurance framework, it consists of five chapters, including this introduction. Chapter two presents a preliminary economic and fiscal risk assessment of natural disasters in ASEAN Member States. Chapter three provides an overview of the fiscal management of natural disasters currently implemented by ASEAN Member States. Chapter four reviews the state of the private catastrophe insurance markets, including property catastrophe risk insurance, agricultural insurance, and disaster micro-insurance. Chapter five identifies five main recommendations for strengthening the long-term financial and fiscal resilience of ASEAN Member States against natural disasters, as part of their broader disaster risk management and climate change adaptation agendas.Publication Advancing Disaster Risk Financing and Insurance in ASEAN Member States : Framework and Options for Implementation, Volume 1. Main report(Washington, DC, 2012-04)This report is part of a project being jointly conducted by the World Bank, the Global Facility for Disaster Reduction and Recovery (GFDRR), the Association of Southeast Asian Nations (ASEAN) Secretariat, and United Nations International Strategy for Disaster Reduction (UNISDR). It aims to provide capacity building on disaster risk financing and insurance (DRFI) in ASEAN Member States. DRFI is a relatively new topic and, therefore, training and capacity building of local stakeholders is essential. Governments must understand the benefits and the limitations of disaster risk financing and insurance as part of their comprehensive Disaster Risk Management (DRM) strategies. This report presents main findings and recommendations on DRFI in the ASEAN region. Following the World Bank disaster risk financing and insurance framework, it consists of five chapters, including this introduction. Chapter two presents a preliminary economic and fiscal risk assessment of natural disasters in ASEAN Member States. Chapter three provides an overview of the fiscal management of natural disasters currently implemented by ASEAN Member States. Chapter four reviews the state of the private catastrophe insurance markets, including property catastrophe risk insurance, agricultural insurance, and disaster micro-insurance. Chapter five identifies five main recommendations for strengthening the long-term financial and fiscal resilience of ASEAN Member States against natural disasters, as part of their broader disaster risk management and climate change adaptation agendas.Publication Kazakhstan : Agricultural Insurance Feasibility Study, Volume 1. Main Report(Washington, DC, 2012-06)Agriculture is a very important socioeconomic sector in Kazakhstan. The Government of the Republic of Kazakhstan (GRK) introduced a national compulsory crop insurance scheme in 2005 in order to provide grain producers and other farmers with a minimum level of protection against catastrophic climatic events. The overall objective of the current study is to assist the GRK in improving the existing mandatory crop insurance program. The study aims to identify sustainable market-based alternatives to the current crop insurance system in Kazakhstan. In this regard, all of the options for improving the current system that were developed under this study are market based and take into account global experience and the best insurance and reinsurance industry practices for agricultural insurance. The study follows the principles established in the agriculture risk management framework developed by the World Bank. The study focuses mainly on spring wheat crop production in the principal growing regions of Kazakhstan. The study is set out in six chapters. Chapter one gives introduction and objectives of the study. Chapter two presents an overview of agricultural production systems and markets in Kazakhstan, followed by an assessment of the climatic hazards and other risks affecting spring wheat in the country s main crop areas. Chapter three reviews the structure and performance of the current mandatory crop insurance system in Kazakhstan and identifies a series of institutional, operational, technical, and financial drawbacks of the current system. Chapter four presents a phased strategy and a series of options and recommendations for the GRK to consider for the introduction of market based solutions that aim to strengthen the current scheme. Chapter five explores the opportunities for developing new crop insurance products in Kazakhstan, including prefeasibility analyses for area-yield index insurance (AYII), weather index insurance (WII), and named-peril hail insurance for selected rayons. Finally, chapter six deals with the challenges of tailoring crop insurance to the needs of lower-income smaller farmers.Publication Kazakhstan : Agricultural Insurance Feasibility Study, Volume 2. Annexes(Washington, DC, 2011-10)Agriculture is a very important socioeconomic sector in Kazakhstan. The Government of the Republic of Kazakhstan (GRK) introduced a national compulsory crop insurance scheme in 2005 in order to provide grain producers and other farmers with a minimum level of protection against catastrophic climatic events. The overall objective of the current study is to assist the GRK in improving the existing mandatory crop insurance program. The study aims to identify sustainable market-based alternatives to the current crop insurance system in Kazakhstan. In this regard, all of the options for improving the current system that were developed under this study are market based and take into account global experience and the best insurance and reinsurance industry practices for agricultural insurance. The study follows the principles established in the agriculture risk management framework developed by the World Bank. The study focuses mainly on spring wheat crop production in the principal growing regions of Kazakhstan. The study is set out in six chapters. Chapter one gives introduction and objectives of the study. Chapter two presents an overview of agricultural production systems and markets in Kazakhstan, followed by an assessment of the climatic hazards and other risks affecting spring wheat in the country s main crop areas. Chapter three reviews the structure and performance of the current mandatory crop insurance system in Kazakhstan and identifies a series of institutional, operational, technical, and financial drawbacks of the current system. Chapter four presents a phased strategy and a series of options and recommendations for the GRK to consider for the introduction of market based solutions that aim to strengthen the current scheme. Chapter five explores the opportunities for developing new crop insurance products in Kazakhstan, including prefeasibility analyses for area-yield index insurance (AYII), weather index insurance (WII), and named-peril hail insurance for selected rayons. Finally, chapter six deals with the challenges of tailoring crop insurance to the needs of lower-income smaller farmers.
Users also downloaded
Showing related downloaded files
Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Poverty and Equity Assessment for El Salvador 2024(Washington, DC: World Bank, 2024-12-12)This report proposes an agenda for building on gains to re-accelerate poverty reduction among Salvadorans. The last World Bank Poverty Assessment for El Salvador, from 2015, proposed two key policy recommendations: (a) effective pro-poor spending and (b) reduction of crime and violence through better access to jobs and education. Nine years later, the authorities have managed to achieve a substantial reduction in crime and violence and have indicated an intent to build on such progress to establish a path toward an El Salvador where shared prosperity is achievable. In this report, we propose a three pillar structure to address poverty and inequality reduction: jobs, services, and social protection, with a cross-cutting set of primary conditions that articulates this structure.Publication Poverty and Shared Prosperity 2022(Washington, DC : World Bank, 2022)Poverty and Shared Prosperity 2022: Correcting Course provides the first comprehensive analysis of the pandemic’s toll on poverty in developing countries. It identifies how governments can optimize fiscal policy to help correct course. Fiscal policies offset the impact of COVID-19 on poverty in many high-income countries, but those policies offset barely one quarter of the pandemic’s impact in low-income countries and lower-middle-income countries. Improving support to households as crises continue will require reorienting protective spending away from generally regressive and inefficient subsidies and toward a direct transfer support system—a first key priority. Reorienting fiscal spending toward supporting growth is a second key priority identified by the report. Some of the highest-value public spending often pays out decades later. Amid crises, it is difficult to protect such investments, but it is essential to do so. Finally, it is not enough just to spend wisely - when additional revenue does need to be mobilized, it must be done in a way that minimizes reductions in poor people’s incomes. The report highlights how exploring underused forms of progressive taxation and increasing the efficiency of tax collection can help in this regard. Poverty and Shared Prosperity is a biennial series that reports on global trends in poverty and shared prosperity. Each report also explores a central challenge to poverty reduction and boosting shared prosperity, assessing what works well and what does not in different settings. By bringing together the latest evidence, this corporate flagship report provides a foundation for informed advocacy around ending extreme poverty and improving the lives of the poorest in every country in the world. For more information, please visit worldbank.org/poverty-and-shared-prosperity.Publication Panama Poverty and Equity Assessment 2024(Washington, DC: World Bank, 2025-02-12)Panama has been one of the fastest-growing countries in the region, with rapid economic expansion accompanied by significant poverty reduction. Driven by public and private investment as well as labor accumulation, the Panamanian economy grew by an annual average of 5.7 percent between 1990 and 2023, much higher than the regional average of 2.5 percent. This growth contributed to a significant reduction in poverty. Using the poverty line of US$6.85 per day per capita (2017 PPP), the share of Panamanians affected by poverty improved from one in two in 1989 to only one in ten lived in 2023. Nevertheless, Panama remains one of the most unequal countries in the world. While poverty in urban areas was 4.8 percent in 2023, poverty in indigenous regions (comarcas) reached 76 percent—15 times higher. Limited progress in reducing inequality, as measured by the Gini coefficient, contrasts with Panama’s achievements in other areas. Globally, Panama ranked 11th in inequality in 2000, with a Gini coefficient of 53.8. Two decades later, it ranked 8th, with a Gini coefficient of 50.9 as of 2022. This report examines Panama’s achievements and challenges in reducing poverty and inequality to inform policy options. With a special focus on the 2008–2023 period the report documents progress in poverty and equity in recent decades, highlighting access to basic services, expansion of quality jobs, improvement of human capital, and promotion of household resilience as critical policy priorities.Publication Mobility and Development Periodical, Fall 2024(Washington, DC: World Bank, 2024-10-01)The fourth edition of the Mobility and Development periodical presents nine stories of how countries have evolved transport sector innovations, policy reform, and technical solutions to improve the quality of life. Opening with big data readiness for urban transport in Latin America, the narrative zooms out to present the potential of drones in the region. After unpacking the fiscal risks of the transport sector, experts unpack pressing urban mobility challenges. Dhaka offers an example of how critical governance can help metropolitan transit agencies deliver value. Keeping inclusion in focus, the next article shows how effective public transportation can boost economic opportunities for women in Middle East and North Africa. Moving to the Europe and Central Asia region offers a perspective of how improved roads influence jobs in rural Armenia. Travelling to Pakistan, authors discuss how to accelerate electric mobility adoption. The final article shows how an economic corridor approach to harness lithium could transform Argentina’s northwest.