The Ministry of Fisheries and Livestock has spearheaded the launch of an enhanced Livestock insurance product or risk transfer solution for local farmers in Zambia that will protect them from losing their capital (livestock) in times of drought or floods.
The product was launched in the first week of October by Fisheries and Livestock Minister Professor Nkandu Luo. The launch event was held at Chikankanta district of Southern Province, which is one of the region’s most affected by low rainfall in the last two farming seasons.
Index-Based Livestock Insurance – IBLI is a comprehensive insurance offering that covers Livestock farmers when their land for grazing is not sufficient, often due to drought or delayed rain. It pays out when there is loss of animals due to adverse weather conditions.
IBLI covers farmers against delayed rainfall, drought, fire and widespread destruction of grasslands by pests and diseases. However, it does not cover against death of the livestock through slaughter, violence and theft.
Prof Luo stated that “what has been launched is another innovation to further support fisheries and livestock as an important sector in the economic development of our country and wealth creation for our people. If we want our people to be healthy and wealthy, there is need for Zambians to put more effort on fisheries and livestock”.
She further stated that “the ministry of fisheries and livestock is one of the ministries that contributes to the growth of the GDP of this country. This ministry also contributes to the health of the people of Zambia, because if people have good nutrition, then they are healthy. Healthy people or a healthy population contributes to an overall increase in production”.
The ministry of fisheries and livestock is a multiplying department such that one animal can multiply to many animals. We have to learn from our neighbors such as Botswana, where the livestock sector is second to [diamond mining] and yet it is desert compared to Zambia. We are challenged to drive this sector to greater heights so that our people can celebrate wealth. ‘I call upon Zambians from north to south and from west to east to take livestock farming serious’. Prof Luo stated.
Many times, farmers do not like insuring their Livestock (assets), but if you don’t insure your animals, when the animals get affected with the diseases and they die, all animals will be lost compared to the amount of premiums you need to pay to insure your animals.
Professor Luo stated that the launch was set for Chikankanta district due to huge number of animals, the hard work of royal highness and the people of the district at large. “In addition, I want to thank IFAD, WFP, AfDB who have given us support both financial and technical, to launch IBLI”.
The insurance companies and partners involved will measure how the vegetation in your area has been affected by adverse conditions, the measurement of the vegetation state is compared against the expected and agreed mark and if below, the Livestock Farmer would qualify for compensation. The insurance will cover the cost of fodder or feed required to keep your livestock alive for the duration of the insurance cover, which normally lasts a season.
The insurance is provided initially by Mayfair insurance, ZSIC general insurance corporation and Madison general insurance company. These insurance companies have been involved in the development and refining of this insurance product.
