Improving financial and food security for farmers in northern Ethiopia

Improving financial and food security for farmers in northern Ethiopia New York, 25 September 2009 – Swiss Re, Oxfam America, The Rockefeller Foundation and The International Research Institute for Climate and Society at Columbia University (IRI) announced a joint Commitment to Action at the Clinton Global Initiative (CGI) 2009 meeting in New York on 22 – 25 September. Aimed at helping communities most vulnerable to climate variability and change, the collaboration will expand on their joint 2008 commitment focused on using risk reduction and risk transfer skills to improve financial and food security for farmers within the drought-prone village of Adi Ha, Tigray Regional State, Ethiopia. Drought-related risks are a primary concern throughout Ethiopia where 85% of the population is dependent on smallholder, rain-fed agriculture. Education and exposure to micro-insurance, increased access to credit and improved risk management techniques are necessary measures for these populations to effectively adapt to the changing climate. The 2009 commitment builds on the success of the 2008 pilot project in Adi Ha. After conducting workshops on climate change, financial literacy and insurance, the pilot weather risk insurance project achieved uptake by 20% of the village (200 households), with 38% of enrollees from female-headed households (recognized as the poorest of the productive poor). 65% of enrollees were participants in Ethiopia's Productive Safety Net Program (PSNP is a federal cash-for-work program that serves 8 million chronically food insecure households in Ethiopia) and most work on projects designed to build greater resilience to climate change within their communities in return for cash they use to pay for crop insurance. David Bresch, Head of Sustainability & Emerging Risk Management for Swiss Re, commented, "Swiss Re is delighted to build on the success of our work with Oxfam and our other partners to expand the pilot program in Ethiopia to five new villages. This expanded project will provide further validation on useful techniques that allow communities in developing countries to adapt to the changing climate." The pilot project is part of the collaborative Horn of Africa Risk Transfer for Adaptation (HARITA) project including Swiss Re, Oxfam America and numerous additional international and Ethiopian organizations. This year's commitment will expand the program to include at least one new crop and test the pilot model in four new villages in Tigray, and one in Amhara. Weather index insurance for rain-fed cereal farmers is proposed to be expanded utilizing two new automatic weather stations to cover the four new villages. Read more. Shared via AddThis