Bistandsaktuelt (Norway) reported that damage to crops as a result of climate change means that 67,286 small farmers in Malawi have received insurance payments totaling $ 2.4 million. This is a new form of cooperation to strengthen farmers’ ability to adapt to climate change.
In a study from 2011, IFPRI-Malawi pointed out that since 2005 the World Bank has been testing index-based weather insurance (IBWI) in Malawi to reduce climate-related risk in the agricultural sector. According to the study, the goal is to reduce the volume of non-performing loans as a result of weather-related crises and increase farmers’ future access to credit. IFPRI’s media contact in Malawi, Aubrey Jolex, tells Bistandsaktuelt that he is unsure whether these payments will be sustainable in the long run, but that it is important that the farmers’ input costs through the AIP scheme are insured.