• Government approves decree to roll out index-based crop insurance nationwide.

• Pilot covered 11,000 farmers in 2024; 2,341 received payouts after losses.

• Scheme targets rice, cotton and livestock, boosting resilience and access to credit.

Benin’s government has approved a decree to expand index-based agricultural insurance across the country, aiming to shield smallholder farmers from climate-related risks.

The decision, announced after a Sept. 24 cabinet meeting, follows the results of a 2024 pilot program that covered 11,000 rice farmers. Of those, 2,341 received payouts after weather-related losses, prompting strong demand from producers in rice, cotton and livestock.

Unlike traditional insurance, the index-based model triggers compensation when pre-set thresholds on yields or production are reached, rather than requiring field assessments. This reduces costs, speeds up payouts and improves farmers’ access to credit, as banks are more willing to finance insured producers.

The government said the broader adoption of the tool aims to enhance agricultural resilience. In March, the Ministry of Agriculture launched another pilot targeting 100,000 farmers in the same three sectors. Agriculture contributes about 24% of GDP and employs 28% of the labor force in Benin.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange Jason Quenum