National Insurance Commission and Policy LINK Join Forces to Operationalize Ghana’s Agricultural Insurance Fund
Kofi Andoh, Acting Commissioner of the NIC (left) and Yunus Abdulai, Country Lead of Policy LINK, exchanging the MoU after signing.
The Feed the Future Ghana Policy LINK Activity has formalized its collaboration with the National Insurance Commission (NIC) by signing a Memorandum of Understanding (MoU). This agreement focuses on structuring and operationalizing Ghana’s Agriculture Insurance Fund (AIF), mandated to subsidize agricultural insurance premiums, develop agricultural insurance products, and enhance industry knowledge to promote wider adoption of agricultural insurance policies.
Under the Insurance Act of 2021 (Act 1061), the AIF was established as a statutory fund. To ensure its successful implementation, representatives from the NIC, the Ghana Insurance Association (GIA), the Ministry of Finance (MoF), and the Ministry of Food and Agriculture (MoFA) have been entrusted with the responsibility of delivering on the fund's mandate.
Participants at the MoU signing event.
Since the beginning of the year, Policy LINK and the NIC have collaboratively been engaging relevant stakeholders in the insurance, financial, and agricultural sectors to explore global best practices in agricultural insurance and decide on which model to adapt and tailor to benefit Ghanaian farmers. Once operational, the fund will ensure farmers' financial security in the face of crop failure resulting from natural disasters like floods and droughts. It will also simplify the process for producers to obtain loans and acquire enhanced inputs.
Addressing the media at the signing ceremony, Kofi Andoh, the Acting Commissioner of Insurance at the NIC, emphasized the importance of a strategic approach to the AIF’s implementation. He highlighted Policy LINK’s expertise in providing technical support and advisory services in agriculture, expressing confidence that this partnership would significantly benefit the agricultural sector, improve farmers' lives, and enhance food security.
“Together, we will work diligently to ensure that the AIF is not just a concept on paper or in law but a tangible lifeline for those who need it,” he added.
Yunus Abdulai, the Country Lead for the Policy LINK Activity, described the MoU signing as a crucial milestone.
“This partnership between Policy LINK and the NIC will enable us to leverage our respective technical and logistical resources towards constituting and operationalizing the Agricultural Insurance Fund to ensure a more secure future for our farmers and nation,” he said.