This initiative is part of the National Agricultural Development Programme (PNDA), implemented by the DRC’s Ministry of Agriculture and supported by the World Bank and the Global Shield Financing Facility, which aims to modernise agriculture and improve farmers’ living conditions in three pilot provinces: Kasaï, Kasaï-Central and Kwilu
The Democratic Republic of Congo (DRC) is facing increasingly severe climatic challenges. Since 1951, average national rainfall has steadily decreased, declining by up to 40.79 mm/month per century. As a result, more than 21.8 million people face food insecurity due to droughts and other natural disasters.
300,000 farmers protected
Against this backdrop, the PNDA has introduced a significant innovation: starting in 2025, a climate insurance product will be launched to protect up to 300,000 farmers in the three pilot provinces from drought (early and mid-season) and excessive rainfall (late season).
In the event of a severe climatic shock, the climate insurance will protect farmers benefiting from the NADP through direct and rapid payments, with amounts that could, in the most extreme situations, reach up to $100 of coverage per farm annually, representing around 15% to 20% of a farmer’s average annual income. This compensation will enable farmers to purchase seeds and resume farming activities for the following season or year. Compensation will be paid directly to farmers without intermediaries or commissions
An innovation based on satellite data
This solution was developed in collaboration with experts from the DRC Ministry of Agriculture, the Autorité de Régulation et de Contrôle des Assurances (ARCA), the World Bank, AXA Climate, the World Food Programme and national insurance companies. During a series of working sessions, stakeholders jointly designed the main technical and operational parameters of the insurance product.
This parametric insurance product, underwritten by the DRC Ministry of Agriculture and financed by the World Bank with the support of the Global Shield Financing Facility, relies on indices derived from satellite rainfall data (TAMSAT and ERA5). When satellite data indicates that pre-defined rainfall thresholds have been exceeded, the compensation process is automatically triggered within hours.
The product will be distributed by Mayfair Insurance Congo SA, the leading member of a national consortium comprising other insurers operating in the DRC (ACTIVA, RAWSUR, GPA, Société Financière d’Assurance, SONAS, and SUNU). Reinsurance will be provided by ZEP-Re.
Building a more resilient agriculture
Jean de Dieu Mbey Bosimi, national coordinator of the PNDA within the Ministry of Agriculture, hopes that this insurance will reinforce the modernisation of agriculture in the country: “This insurance will offer Congolese farmers essential protection against climatic risks, encouraging them to invest in ways that improve both their productivity and income.”
Alain Kaninda Ngalula, Managing Director of ARCA, comments: “The launch of agricultural insurance marks a major leap forward for the insurance sector in the DRC. It illustrates the key role of the regulator in fostering innovation and expanding financial services to benefit the population. which aligns with the vision of the Head of State, Felix Antoine Tshisekedi Tshilombo, regarding agricultural governance underpinned in particular by the establishment of the National Farmers’ Register and the operationalisation of an agricultural insurance system. Food self-sufficiency must no longer be a mere slogan but become a reality.”
Gaudens Kanamugire, Managing Director of Mayfair Insurance Congo SA, says: “We are dedicated to protecting farmers’ livelihoods and creating a local culture of agricultural insurance.”
Pierre Toyum, ZEP-Re Director for the DRC, adds, “Our commitment as a reinsurer demonstrates our confidence in the transformative potential of insurance for Africa’s agricultural sector.”
Cristina Stefan, Project Manager at the World Bank, adds: “We will closely monitor the results of the insurance and refine the product over time. This large-scale initiative could pave the way for the introduction of agricultural micro-insurance in the DRC.”
On the technical front, AXA Climate led the mission. Karina Whalley, Director of the Public Sector Department, is delighted with this inspiring step forward for the sector: “We are honoured to bring AXA Climate’s expertise to Congolese farmers. This achievement would not have been possible without the steadfast commitment of the DRC Ministry of Agriculture, the World Bank, national insurers and the Autorité de Régulation et de Contrôle des Assurances”.
This step, according to the promoters, illustrates the commitment of the DRC and its partners to building a more resilient agricultural sector capable of addressing climate challenges.