Ghana receives $2.8m crop insurance premium for farmers

Ghana has received a $2.8 million crop insurance premium. This fund will help smallholder farmers in northern and southern Ghana affected by the 2024 dry spells.

Part of the money will cover premiums for flood damages in Kumasi, Accra, and Takoradi. A source at the Ministry of Finance told the Ghana News Agency that payments to farmers will start soon.

Last year, the government bought a $1 million crop insurance premium from African Risk Capacity (ARC). This was to protect farmers whose crops were harmed by dry spells.

The Global Shield Solution Platform (GSSP) funds this initiative. GSSP is an international non-profit organization that helps vulnerable populations.

Last year, the government announced GH¢1,000 assistance for each vulnerable farmer. This support aimed to help them buy subsidized agricultural inputs like fertilizers.

According to the Ministry of Food and Agriculture, Ghana faced a dry spell last farming season. It affected 1.8 million hectares of crops and 980,000 farmers.

The losses were estimated at GH¢22.2 billion. The affected regions contributed about 62 percent of Ghana’s annual grain supply.

This season, there was a cereal shortage due to dry spells in northern Ghana. Many farmers lost their livelihoods as a result.

The financial impact has been severe: an estimated investment loss of GH¢3.5 billion and revenue loss of GH¢10.4 billion.

The Global Shield Solution Platform aims to provide better financial support for disaster-affected areas.

African Risk Capacity was established in 2012 by African Union Heads of State. It addresses natural disasters' increasing frequency and severity while providing reliable financing for related costs.

This institution collaborates with African nations to plan for and respond to natural disasters.