The only permanent way to end hunger in Sub-Saharan Africa is to invest in solutions that sustainably increase farm production. One Acre Fund is a nonprofit organization that is working with more than 500,000 smallholder farming families to do just that. The organization offers a comprehensive bundle of farm inputs, financing, and training to smallholders, and those who enroll on average see a 50 percent increase in their crop yields after just the first year. Currently One Acre Fund is working in Kenya, Rwanda, Burundi, Tanzania, Malawi, and Uganda, with the goal of reaching at least 1 million farm families, including almost 4 million children, by the end of the decade.
To support this expansion, sfr-consulting - a member of Munich Re Group - developed a new innovative risk transfer mechanism which helps to protect One Acre Fund’s program model. Although the impact of climate has been identified as an influential component in farm production, experience has shown that a bouquet of various risk factors contributes to the farmers’ performance.
Therefore, with the objective to develop sustainable insurance solutions, sfr-consulting together with Munich Re designed a comprehensive insurance scheme to protect local finance aggregators against default and non-performance of distributed loans and credits.