Faith Ndou
MASVINGO-AFC’s Farmers Basket Insurance scheme has become a critical safety net for smallholder farmers facing increasing climate-related risks such as droughts, erratic rainfall and early or late dry spells, designed to strengthen resilience and protect the livelihoods of rural farming communities across the country.
Speaking to The Midweek Watch, AFC Insurance Company Managing Director Cuthbert Masukume said,
“The Farmers Basket Insurance product was developed in response to the rising severity and unpredictability of climate change and weather-related risks, such as severe droughts and early or late dry spells. Farmers Basket Insurance is specifically designed as an index-based agricultural insurance product, meaning it pays out based on a predetermined trigger rather than a direct assessment of physical damage. The primary motivation was to establish a financial safety net and build resilience among smallholder farmers.”
Masukume explained that the product was initially piloted during the 2023/2024 agricultural season in Goromonzi district before being officially upscaled to the 2024/2025 agricultural season, covering eight rural provinces Buhera, Bindura, Chiredzi, Hurungwe, Gokwe South, Umguza and Bulilima.
More than 20,000 smallholder households were onboarded for the expansion.
The insurance focuses on staple smallholder crops such as maize, sorghum and millets, crops that are mostly affected by drought and excessive rainfall.
Masukume noted that while the primary focus is crop risk, the Index-Based Cattle Insurance is also being piloted in Mwenezi and Bulilima. It uses a satellite-measured rangeland index to assess vegetation levels in each ward. If conditions are far worse than normal, a payout of up to US$100 per beast is automatically triggered, no claim form required.
He added that the enrolment process has been made simple to encourage maximum uptake. “The farmer should express interest and be registered through Agritex officers. Farmers should then pay the requisite premium to secure coverage for the planting season. Timely payment of the required premium is mandatory. The farmer’s location must fall within the designated insured area covered by the specific weather or yield index,” he explained.
Masukume adds that the product is integrated into broader government efforts which has helped streamline onboarding across districts.
The insurance is priced to suit smallholder farmers. “Currently the product is priced at US$24 for a sum insured of US$300 for a season’s coverage. Coverage lasts for one season only and farmers must pay the affordable premium (starting from USD $13) by the 30th of December to be covered,” Masukume said.
He added that payments can be made through cash or mobile money, while large-scale farmers are expected to use traditional indemnity insurance because the Farmers Basket is specifically designed as a social-safety-net product for smallholders.
He further highlighted the speed and simplicity of the claims process.
“The payout is triggered automatically when the defined weather index or yield index falls below the pre-agreed threshold. All farmers within the defined area are deemed to have suffered a loss even without filing an individual claim,” he said.
For livestock, payouts are typically made by mid-August if grazing conditions fall below normal ensuring support arrives when farmers need it most.
He added that the pilot phase proved the efficiency of the system as farmers who paid their premiums received payouts during drought conditions.
Masukume said, “The Farmers Basket Insurance is transforming how smallholder farmers cope with climate shocks. The aim is to give farmers confidence to plant, knowing they will not lose everything if the rains fail.”
As climate change continues to intensify, AFC Insurance Company plans to expand the Farmers Basket Insurance to reach more districts and strengthen the safety net for Zimbabwe’s largest group of food producers.
