By Deborah Madeya:
In recent years, Malawi has faced severe droughts, floods and other natural disasters that have devastated agricultural production.
For smallholder farmers, such calamities plunge them and their families into the abyss of poverty. It will take years to escape.
Malawi’s economy is highly dependent on agriculture, with 80 percent of the population consisting of smallholder farmers, according to the United States Agency for International Development (USAid).
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These farmers produce about 80 percent of Malawi’s food and 20 percent of the country’s export commodities.
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In March 2023, Cyclone Freddy struck the southern part of Malawi, displacing over 500,000 people and destroying crops.
The 2023-24 rainfall season, affected by El Niño conditions, was marked by a prolonged dry spell that ruined numerous crops.
Rose Nsewula, a smallholder farmer from Ntauchira Village, Traditional Authority of Likoswe, in Chiradzulu District, lost her crops to Cyclone Freddy-induced floods.
Nsewula hoped to start anew this year, but was met with another setback as she barely harvested anything due to the dry spell.
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“The cyclone not only washed away our houses but also swept away the nearly harvested crops we had grown. I could have harvested at least 10 bags of maize, which was enough to feed my family for the whole year.
“I tried planting again this year on a different farm, but due to the dry spell, I barely got anything,” Nsewula explained.
Nsewula is just one of hundreds of farmers grappling with perennial harsh weather conditions.
The World Bank’s 2022 Poverty Assessment for Malawi shows that agriculture remains the country’s most important sector, with 85 percent of the population depending on it.
As highlighted in the Malawi 2063 vision agriculture is the backbone of the country’s growth, accounting for 30 percent of the gross domestic product.
However, every year, farmers report low yields due to unpredictable weather conditions, which threatens the very existence of farming communities.
Climate change is a long-term issue that requires significant time to address.
However, crop insurance offers essential support for farmers to recover after catastrophic events.
Insurance providers have introduced crop insurance policies tailored to the needs of Malawian farmers.
These policies cover a range of crops and farming scenarios, ensuring that even in adverse weather conditions, farmers have a chance to secure their livelihoods.
Acre Africa Business Development Lead Niza Banda says insurance policies vary but typically cover risks such as drought, excessive rainfall, and crop pests and diseases.
She added that crop insurance provides financial support to farmers in case of crop failure due to adverse weather conditions like drought and floods.
“Crop insurance helps farmers manage the uncertainties of farming, reducing the impact of losses and enabling them to invest in better agricultural practices.
“With insurance coverage, farmers may find it easier to access credit, as it demonstrates their ability to manage risks. This helps farmers make informed decisions and invest more confidently in their crops, knowing they have insurance to fall back on in case of loss,” Banda said.
The significance of crop insurance extends beyond individual farmers; it profoundly impacts the nation’s food security.
The agricultural sector not only feeds the population but also contributes significantly to the economy.
Agricultural policy expert Ronald Chilupha noted that while farming is a business with inherent risks, small-scale farmers often struggle to afford insurance coverage.
He suggests that the Affordable Inputs Programme (AIP) should include an insurance component, so that if a farmer loses crops after buying fertiliser with AIP funds, they would be covered.
“The first step is to create awareness by using clear examples like Cyclone Freddy, which had a significant impact on many farmers. We need to clarify how insurance works, preferably in Chichewa, as many smallholder farmers are not highly educated. It’s crucial to ensure that farmers understand the cost of insurance based on the size of their farms,” Chilupha explained.
The government, through the Ministry of Agriculture, has recognised the importance of crop insurance and put across a number of interventions to help the sector.
Ministry of Agriculture Principal Secretary Medrina Mloza Banda stated that several initiatives have been launched to expand access to insurance coverage, particularly for smallholder farmers who constitute the majority of the farming community.
“Crop insurance, such as Area Yield Index Insurance, which has been securing funds from the adaptation fund and the World Food Programme for farmers in the Southern Region, supports smallholder farmers’ resilience and food security.
“The payouts are directly linked to the amount of yield loss experienced by farmers due to climate-related calamities,” Banda said.
