Promoting Index-Based Weather Insurance for Small Holder Farmers in Burkina Faso

Project Overview

The United Nations Development Programme is working with the Government of Burkina Faso to develop a project proposal for a new US$4.5 million grant proposal for the Global Environment Facility Least Developed Countries Fund. The proposed "Promoting Index-Based Weather Insurance for Small Holder Farmers in Burkina Faso" project will include US$19 million in co-financing. The project looks to creating enabling conditions for advancing an index-based weather insurance system in Northern Burkina Faso, pilot an insurance program  for small-scale producers (involved in maize and groudnut production) to minimize the damage induced by climate risks, and capture and disseminate lessons learned from the index-based weather insurance experience.

Expected Outcomes

Outcome 1 - Enabling conditions for advancing an index-based weather insurance system in Northern Burkina Faso developed

Outcome 2 - Insurance program piloted for small scale producers (involved in maize and groudnut) to minimize the damage induced by climate risks

Outcome 3 - Lessons learned from the Index-based Weather Insurance experience are documented and disseminated

Project Details

Levels of Intervention

National

Source of Funds

GEF-LDCF

Key Implementers

Country Office
National Governments

Funding Amounts

US$4.4 million (Proposed GEF LDCF Grant)
US$19 million (Proposed Co-Financing)

Project Partners

Global Environment Facility (GEF)

Introduction

The United Nations Development Programme is working with the Government of Burkina Faso to develop a project proposal for a new US$4.5 million grant proposal for the Global Environment Facility Least Developed Countries Fund. The proposed "Promoting Index-Based Weather Insurance for Small Holder Farmers in Burkina Faso" project will include US$19 million in co-financing. The project looks to creating enabling conditions for advancing an index-based weather insurance system in Northern Burkina Faso, pilot an insurance program  for small-scale producers (involved in maize and groudnut production) to minimize the damage induced by climate risks, and capture and disseminate lessons learned from the index-based weather insurance experience.

Key Results and Outputs

Expected Outcomes

Outcome 1. Enabling conditions for advancing an index-based weather insurance system in Northern Burkina Faso developed

Outcome 2. Insurance program piloted for small scale producers (involved in maize and groudnut) to minimize the damage induced by climate risks.

Outcome 3. Lessons learned from the Index-based Weather Insurance experience are documented and disseminated

Expected Outputs

Output 1. Review the institutional and policy environment to identify gaps and barriers to implementing IBWI

Output 2. Conduct an assessment of institutional capacities and key actors to be trained (including farmers, insurance companies and government officials)

Output 3. Conduct financial literacy and awareness programs for target beneficiaries on IBWI

Output 4. Engage farmers in a participatory and gender sensitive insurance product design and MRV of losses

Output 5. Build a regular sharing and training platform for all stakeholders (farmers, insurance companies, rural banks, and agriculture input companies)