Joint development of an innovative risk transfer mechanism by One Acre Fund, Munich Re and sfr-consulting

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Corporate Responsibility News

8 November 2017

Joint development of an innovative risk transfer mechanism by One Acre Fund, Munich Re and sfr-consulting

Seventy percent of the world’s poorest people depend on farming for their livelihood. Yet most of these farmers live in remote areas of the world, and do not have access to basic agricultural tools and training. The only permanent way to end hunger in Sub-Saharan Africa is to invest in solutions that sustainably increase farm production.

One Acre Fund is a nonprofit organization that is working with more than 500,000 smallholder farming families to do just that. The organization offers a comprehensive bundle of farm inputs, financing, and training to smallholders, and those who enroll on average see a 50 percent increase in their crop yields after just the first year. To support this expansion, sfr-consulting - a member of Munich Re Group - developed an innovative risk transfer mechanism which helps to protect One Acre Fund’s program model. Although the impact of climate has been identified as an influential component in farm production, experience has shown that a bouquet of various risk factors contributes to the farmers’ performance.

“We are excited about this innovative insurance solution, as it helps One Acre Fund manage the risks of working in rural, unbanked markets, which are also greatly affected by climate change”

Jenya Shandina, Senior Manager at One Acre Fund

About sfr-consulting

sfr-consulting is a spin-off company of the Munich Re Group which operates with the strategic mandate to support the achievement of the Sustainable Development Goals. With the access to Munich Re Group's and its network partners' expertises and capacities, sfr-consulting is the preferred partner for development finance institutions, donors and other partners.

About One Acre Fund

Founded in 2006, One Acre Fund is a nonprofit social enterprise that supplies smallholder farmers with the financing and training they need to grow their way out of hunger and poverty. The organization distributes quality farm inputs to the remote areas where farmers live, trains farmers on agricultural techniques, and educates them on how to minimize post-harvest losses and maximize market prices. The organization currently serves farmers in Kenya, Rwanda, Burundi, Tanzania, Uganda, and Malawi.

 

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