Sierra Leone Validates First National Agricultural Insurance Policy
Osman Tolo Sesay Sierra Leone has moved closer to establishing a national framework for agricultural insurance after the Ministry of Agriculture and Food Security validated a policy to reduce farmers’ exposure to production risks.
The validation was held Wednesday, September 23, at Bintumani Hotel in Freetown, with support from the United Nations Capital Development Fund and other stakeholders. The policy is intended to expand insurance coverage and strengthen farmers’ resilience while improving their access to financial services.
Agriculture and Food Security Minister Dr Henry Musa Kpaka said the policy will be submitted to Cabinet for approval once the document is finalized. He said implementation will then begin under the government’s Feed Salone agenda, with selected agricultural value chains used for initial pilots.
Kpaka linked the insurance framework directly to agricultural financing, describing the Agricultural Insurance Policy and Agricultural Finance Policy as “twin instruments.”
He said reducing the risks associated with farming could also reduce the risks perceived by financial institutions, potentially giving banks and other lenders greater confidence to finance farmers.
“This will give banks and other lenders greater confidence to finance farmers, driving investment, productivity, and growth in the sector,” he said.
The policy development forms part of UNCDF’s broader Salone Access to Finance initiative, which includes agricultural insurance alongside investment, digital financial services and regulatory reforms. UNCDF says it is supporting Sierra Leone in developing policy and regulatory frameworks for agricultural insurance and agricultural financing.
Ayandev Saaha, lead consultant from K.M. Dastur & Company Limited, said the formulation process involved stakeholders from the agricultural and financial sectors.
Saaha said agricultural insurance could help farmers manage production risks, maintain their operations and strengthen their ability to obtain financing.
Participants at the validation meeting also called for government backing during the early stages of implementation. Some stakeholders proposed subsidizing insurance premiums to make coverage more affordable and encourage wider participation.
UNCDF has previously identified climate risks, including drought and excessive rainfall, as significant financial risks for agricultural communities. The organization is already piloting weather-index insurance in Sierra Leone, targeting more than 4,000 agri-MSMEs and farming communities.
The validation therefore marks a further step in efforts by the government and its partners to establish an agricultural insurance system that can help farmers manage shocks while supporting greater access to finance across the sector.