R4 Rural Resilience Initiative Quarterly Report | April - June 2013

R4 Rural Resilience Initiative Quarterly report | aprIl - JuNe 2013

Contents executive summary 1 Status summary 3 accomplishments this quarter 5 r4 rural resilience in ethiopia: roll-out 2013 6 r4 rural resilience in Senegal: 2014 Scale-up plan 11 Conclusion 14 appendix I: r4 partners and institutional roles 16 appendix II: rural resilience event series 18 appendix III: Media citations and resources 19

Cover: at a community meeting in Michael Debir village in ethiopia’s amhara region, farmers are asked to look back to the 1980s to recall which years had the most severe droughts. through this exercise farmers are helping to design insurance contracts that will work best for them. Geoﬀrey McCarney / International Research Institute for Climate and Society (IRI) exeCutive summary

For the 1.3 billion people living on less than a dollar a day who In response to this challenge, oxfam america and the uN World depend on agriculture for their livelihoods, vulnerability to Food programme launched the r4 rural resilience Initiative, climate-related shocks is a constant threat to food security and known as r4, referring to the four risk management strategies well-being. as climate change drives an increase in the frequency that the initiative integrates. Initiated in 2010, the program builds and intensity of natural hazards, the challenges faced by food- on the initial success of HarIta (Horn of africa risk transfer for insecure communities struggling to improve their lives and adaptation), an integrated risk management framework livelihoods will also increase. the question of how to build rural developed by oxfam america, the relief Society of tigray (reSt), resilience against climate-related risk is critical for addressing together with ethiopia farmers and several other national and global poverty. global partners1 to enable poor farmers to strengthen their food and income security through a combination of improved resource management (risk reduction), insurance (risk transfer), microcredit (prudent risk taking), and savings (risk reserves).

an animator from one of r4’s local partner organizations, the 1. See appendix I: ‘r4 partners and institutional roles’ for full list of r4 partners and NGo la lumiere, conducting a ﬁnancial literacy training in a institutional roles. Savings for Change (SfC) group, in Senegal’s Koussanar rural community. Mansi Anand/ Oxfam America

r4 Quarterly report | aprIl - JuNe 2013 1 In ethiopia, this agricultural season, r4 expanded its operations to In Senegal, r4 has begun the pilot implementation for the 2013 a new region amhara with a pilot in one village2 , while expanding agricultural season in 12 villages in the Koussanar communauté to 79 villages in tigray, covering a total of 20,365 farmers in 80 rurale3 covering 500 households ― thus supporting 3,000 villages. the amhara pilot is being implemented in partnership beneﬁciaries. the r4 Senegal team has also developed the 2014 with the organization for rehabilitation and Development in Scale-up plan and has identiﬁed the areas where r4 will be amhara (orDa); the relief Society of tigray (reSt) continues to expanded to in 2014. implement r4 in tigray. In this report we share key accomplishments during the april– June 2013 quarter, present the Senegal Scale-up plan for 2014, and provide enrollment results for the 2013 roll-out in ethiopia.

2. It the ethiopian context, this report uses the word “village” to refer to the 3. a communauté rurale, or rural community, is the smallest sub-regional ethiopian term tabia, or subdistrict. tabia is the tigrigna language name for administrative unit in Senegal; it consists of a group of villages kebele, that is, the smallest administrative unit of the ethiopian federal government (uN emergency unit for ethiopia, 2003). ethiopia’s administrative structure follows: region (e.g., tigray) > zone (e.g., eastern tigray) > woreda/district (e.g., Kola tembien) > tabia/subdistrict (e.g., adi Ha) > kushet.

r4 Quarterly report | aprIl - JuNe 2013 2 status summary

etHiopia purchased insurance, 82 percent were from the villages where In the 2013 agricultural season, r4 expanded its operations to 80 farmers had both the options, and the remaining 18 percent of villages including 79 villages in the tigray region, and 1 village in a purchasers were from the villages where only the cash option was new region- amhara where a pilot is being implemented in Michael offered for purchasing insurance. of the total farmers who enrolled Debir village. a total of 20,365 farmers purchased insurance this year this year in tigray, 81 percent purchased insurance by paying 10 exceeding the goal of 19,000 this year. In amhara, farmers had the percent in cash and the remaining 19 percent paid fully with cash. In option to purchase insurance through labor or with cash. In tigray, amhara, all the 350 farmers farmers who purchased insurance, paid the 79 villages include 43 villages where insurance was offered through labor. consecutively in 2011 and 2012 agricultural season, where farmers continue to have the option to buy insurance through labor or with More details on the 2013 enrollment appear in the “r4 rural cash. In 36 additional villages, farmers were offered insurance resilience in ethiopia: 2013 enrollment results” section of this report. through a cash-only option. In tigray, of the total 20,015 farmers who

Figure 1. r4 ethiopia timeline for 2013 season

s 2012 201 3 u t a t

s Jan Feb Mar apr May Jun Jul aug Sep oct Nov Dec Jan Feb Mar apr may Jun Jul aug Sep oct Nov Dec

Financial P education and outreach

Financial P package development P enrollment P risk reduction activities

payout P process Financial education P and outreach Financial package P development Savings and credit P activities

enrollment

risk reduction activities

payout process

r4 Quarterly report | aprIl - JuNe 2013 3 senegal is being tested during the current agricultural season. this index the implementation of r4 in Senegal is now well underway. will form the basis of the actual insurance product to be offered activities have started in the Koussanar pilot area in april for all to farmers in 2014. New savings groups are being formed building of r4’s components― resource management (risk reduction), on oxfam’s Saving for Change (SfC) program and a small business insurance (risk transfer), microcredit (prudent risk taking), and training is being introduced in existing groups. an inventory credit savings (risk reserves). the pilot supports 500 households― thus system linked to village cereal banks (known as “warrantage”) is reaching 3,000 beneficiaries― in 12 villages in the Koussanar also being set up. It seeks to provide farmers with access to credit communauté rurale. the risk reduction work being carried out right after harvest, a time of high household expenditures, to includes activities like development of lowlands for rice prevent sell offs of key food crops. cultivation, building wells for horticultural production and training of farmers’ associations in improved rice production techniques. In addition to the implementation of the Koussanar pilot, the r4 a study to assess the feasibility of different types of insurance Senegal team is also laying the ground for the scale up and products to meet the needs of farmers was carried out in the last expansion in other regions of Senegal in 2014. For more details quarter. the results of this study informed the design of a on scale-up strategy for Senegal, see section “r4 Scale on r4 prototype weather index for crop insurance whose performance rural resilience in Senegal: Scale-up plan”.

Figure 2. r4 senegal timeline for 2013 season

s 2012 201 3 u t a t

s Jan Feb Mar apr May Jun Jul aug Sep oct Nov Dec Jan Feb Mar apr may Jun Jul aug Sep oct Nov Dec P planning P National assessments P local context analysis and planning Design risk reduction P component risk P assessment

risk reduction activities

Insurance demand study % product design

Creation & training of SFC Groups

Conception of warrantage

process evaluation

Insurance dry-run tested

r4 Quarterly report | aprIl - JuNe 2013 4 aCComplisHments tHis quarter metriCs From tHe Field

etHiopia senegal

Risk transfer Risk reduction • a total of 20,365 farmers from 80 villages purchased • a total of 12 farmers’ associations were trained in improved insurance for the 2013 agricultural season. lowland rice production techniques; 70 farmers trained in • a total of 86 development agents and woreda officials were composting and phosphating techniques. trained on insurance concept; 686 farmers trained in 'train • a total of 12,845 farmers from 21 villages, including 2,870 the trainer' workshops on insurance and consumer women, participated in video shows on community risk protection. management and insurance. • anti-erosion stone bunds were constructed in 12 villages; 5 Disaster risk reduction wells were built and 4 vegetable gardens set up in 3 villages. • a total of 23,000 trees were planted; 200 hectares of land was irrigated through construction of flood diversion Risk transfer structures. • two automated weather stations were installed in Koussanar in • about 19,900 trenches constructed to prevent soil erosion. collaboration with the National Meteorological agency and the • a total of 320 women farmers prepared small backyard plots IFaD/ WFp Weather risk Management Facility (WrMF). to produce vegetables. • experimental risk simulation games were conducted by IrI researchers with about 50 farmers, to understand farmers’ Prudent risk taking and risk reserve perceptions of climate risks and insurance. • about 10,000 leaflets on financial education were distributed in an r4-run awareness and education program. Prudent risk taking and risk reserves • a total of 21 new women savings groups created with an average of 20 women per group; a total of 886 800 CFa accumulated as savings. • Four men’s savings groups created in 4 villages. • Community agents from la lumière and members of r4 local technical Committee members trained on the warrantage credit system.

r4 was presented at the Hunger – Nutrition – Climate Justice be held from 8-9 July in abuja, Nigeria. the event is intended to Conference convened in Dublin from 15-16 april by the Irish highlight top agricultural innovations from across africa and Government and the Mary robinson Foundation. the conference generate discussion among top-level african policy makers around was organized by the Irish Government in collaboration with WFp furthering these and other innovations across the continent to and the CGIar research program on Climate Change, agriculture support small holder farmers. oxfam supported this initiative by and Food Security (CCaFS). a case study on r4, “the rural conducting research on agricultural innovations of the past decade. resilience Initiative: building a risk management market for poor eight of them were selected as the most promising innovations to farmers” developed jointly by oxfam and WFp was included in be featured at the event. the conference publication. r4 is highlighted in the “Climate Change: the New economy” , the the rockefeller Foundation has selected r4 Senegal project as one of 39t h G8 Summit report published in June 2013 jointly by Climate the agricultural innovations for their Centennial event, “realizing the Change the New economy (CCtNe), the Guardian and united potential of afr ican agriculture: Catalytic Innovations for Growth” to Nations environment programme (uNep).

r4 Quarterly report | aprIl - JuNe 2013 5 r4 rural resilienCe in etHiopia: roll-out 2013

With an aim to strengthen farmers’ long-term food and income Figure 3. Harita to r4 scale-up: goal vs. actual Households security, in 2009 a pilot of the HarIta model was conducted in adi Ha, a village in ethiopia’s northern tigray region. the pilot 25,000 offered a robust risk management package that integrated 20,365 18,959 19,000 disaster risk reduction, a credit option, and affordable insurance. 20,000 an index-based weather insurance product was designed to 15,000 insure farmers’ teff crops. In 2010 this model was expanded to 15,000 13,195 four additional villages, and several adaptations were 11,500 implemented based on discussions with farmers. two additional 10,000 crops, wheat and barley, were covered. In its third year of delivery in 2011, HarIta was expanded to 43 villages covering 5,000 13,195households and six crops: wheat, barley, maize, sorghum, 1,308 100 200 700 bean, and teff. In the 2012 agricultural season, as part of the r4 0 2009 2010 2011 2012 2013 rural resilience Initiative, the program was further expanded to

76 villages in the tigray region, covering 19,407 farmers. Goal actual

at a community meeting in Michael Debir village in ethiopia’s amhara region, farmers are asked to look back to the 1980s to recall which years had the most severe droughts. through this exercise farmers are helping to design insurance contracts that will work best for them. Geoﬀrey McCarney / International Research Institute for Climate and Society (IRI)

r4 Quarterly report | aprIl - JuNe 2013 6 the 2013 agricultural season marked the expansion of r4 to a produCt options new region amhara with a pilot implementation in one village this year, farmers in tigray were offered products that covered while continuing to work in the in tigray region. a total of 20,365 short-cycle crops (teff and beans) and long-cycle crops (maize, farmers purchased insurance in tigray (20,015 farmers) and in wheat, barley, and sorghum). In amhara, farmers had the option amhara (350 farmers). Farmers have been able to purchase to cover their wheat crop. the products are offered for two insurance with cash or, partially with cash and partially with windows in a given season depending on the type of crop: labor. the enrollment has been constrained by the budget for the • early Index: targets weak or late onset of rainfall, which insurance-for-work (IFW) component of the project. However, impacts sowing and the establishment of long-cycle crops, like given the resource constraints, the enrollment continues to sorghum and maize. reflect a very strong demand for insurance. • late Index: targets weak or early end of rainfall, which impacts flowering and grain filling of all crops. this section discusses enrollment results for the 2012 season, using data collected immediately following enrollment. the result For each index, a dry option was offered which is set to have a does not reflect final outcomes, which are being studied by the meaningful payout about once in four or five years for each monitoring and evaluation team. window. Insurance was offered by two ethiopian insurance companies, africa Insurance Company and Nyala Insurance Share Company.

Figure 4. districts, villages and crops insured in 2013

district village Crops insured district village Crops insured tigray region tigray region

adua Bethans Wheat, teff raya azebo Geneti teff DebreGeneta teff Hadealga teff endaBagerima Wheat adisKigni teff Gendebta teff Bala teff MariamShewito Wheat, teff Hawelti teff Seloda teff Korme teff tahtaylegomti teff tsigea teff Wedikeshi Sorghum ulaga teff Mechare teff alamata Gerjale teff ebo teff laelayDayu teff limaat teff saes-tsaeidaemba Hadushadi Barley, Wheat SelamBekalsi teff agazi Wheat, teff SelenWuha teff asmena teff, Wheat Kulu-Gizelemlem teff Guemse Wheat, teff HadushHiwet Wheat, Barley ahferom Betgebez teff Hangoda teff, Wheat Maysuru teff Sendada Wheat, teff Sero teff Sinkata Wheat, Barley, teff tahtayMegariatsebri teff lelayMegariatsebri teff samre adekeala teff adiZata teff adisalemS teff adiyiekoro teff amdiWeyane teff HintsaWaza teff atsbi Barkaadiswha Wheat and Beans Mayteklia teff Habees Wheat and Beans Metkellemat teff Golgolemalee Wheat and Beans rubaFelege Wheat tanquaabergele agbe Sorghum FelegeWayane Wheat and Beans Imbarufael Sorghum lemlem Sorghum and Maize Kilteawlaelo Nagash teff, Wheat Mearey Sorghum abrahaatsbaha teff, Wheat Shekatekli Sorghum adiKisandid Wheat Gera teff aynalem teff, Wheat Genfel Wheat Wierelahe adisalemW/tseftsef teff Kihen teff, Wheat endachiwa teff MahbereWeyane teff, Wheat endagahamus teff Mesanu teff, Wheat Maekelawi teff MaekelSegli teff Kolatembien atakilti teff Selam teff endabano Zongi teff Werkamba teff adiha teff awetbikalsi teff amhara region DebreGenet K Maize, teff Begashek Maize, teff libokemkem Michael Debir Wheat GetskiMilesiley Maize, teff

r4 Quarterly report | aprIl - JuNe 2013 7 enrollment 2013 In tigray, the average enrollment (percentage of farmers insured) a distinctive aspect of r4 is the insurance-for-work component in 43 villages where farmers have been offered the IFW option is through which farmers who participate in a government-run 34.81 percent; while the average in the 36 villages where farmers productive Safety Net programme (pSNp), which serves 8 million were farmers were offered the cash-only option to purchase chronically food-insecure households, are able to pay for the insurance is 7.16%. insurance through labor. this year, r4 expanded to a new village in the amhara region, covering 350 farmers. In tigray, the 43 Comparison oF average enrollment rates in 2010, 2011, villages where the IFW option was offered in 2011 and 2012, 2012 and 2013 continued to have the IFW option to purchase insurance. In In tigray, farmers in five villages—adi Ha, awet Bikalsi, Geneti, addition, the project covered 36 villages where farmers were Hade alga, and Hadush adi—have been offered the IFW option offered the option to purchase insurance with cash only, including for the past four consecutive years. the average enrollment rate the 33 villages covered last year. in these five villages has gone up from 22.2 percent in 2010 to 30 percent in 2013. However, the enrollment rate fluctuates if we the enrollment rate is calculated based on the total number of look at the results for each village over the course of four years. households in the village (i.e., the number of purchasers in a village as a percentage of the e total number of households in that village). In adi Ha village, where the pilot was first started in 2009, the It is assumed that there is only one purchaser per household. enrollment rate has fluctuated from 31.1 percent in 2010 to 29.2 percent in 2011 to 35.2 percent in 2012. In 2013 it has dropped by 8 the enrollment reflects a combination of demand for insurance percent. In Hadush adi and Geneti, the enrollment rate has gone up and the capacity of the program. the capacity to offer insurance each year. For example, in Hadush adi, the enrollment rate in villages in which farmers had the option to pay for insurance increased from 31.5 percent in 2010 to 36.1 percent in 2011 to 37.5 with labor was constrained by the funding for the IFW component percent in 2012 to 52 percent in 2013. the enrollment rate in Hade of the project. Instead of insurance being offered until everyone alga has gone up from 12.6 percent in 2010 to 15.4 percent in 2011 had a chance to buy it, farmers had a limited window of and 2012 to 23.6 percent in 2013. Because overall enrollment is opportunity to purchase the insurance. constrained by project resources across all of the IFW villages, these changes reflect a mix of village-level demand, project-level IFW the enrollment was conducted on a first-come, first-served basis until resources, and cost-sharing approaches such as the 10 percent cash the project reached the target number of households for that village. contribution by IFW farmers since 2012.

Figure 5. average enrollment rate for iFW and Figure 6. average enrollment rates in ﬁve villages where non-iFW villages for 2012 and 2013 insurance was oﬀered consecutively for four years

40% 40%

34,81% 35% 35% 20,28% 28,56% 30% 30% 26% 25% 25% 23,3% 22,2% 20% 20%

15% 15% 10,54% 10% 10% 7,16% 5% 5%

0% 0% IFW villages (43) non-IFW villages (32) 2010 2011 2012 2013

2012 2013

r4 Quarterly report | aprIl - JuNe 2013 8 Comparison oF average enrollment rates in 2011, 2012 example, the enrollment rate has remained steady or has gone up and 2013 for 81 percent of the IFW villages which did not receive payout In tigray, farmers in 43 villages in nine districts have been offered last year. this indicates that farmers do not tend to drop out of the IFW option consecutively for 2011, 2012 and 2013. there has the insurance scheme even if there is no payout in the previous been a rise in the average enrollment rate in 43 villages where year. a possible reason for this could be that farmers understand farmers were offered the IFW option as well as the cash option the benefit of the risk reduction activities that they conduct to for three consecutive years from about 28 percent in 2010 and earn insurance. the enrollment rate tends to fluctuate in case of 2011 to 34.81 percent in 2013. While there is an increase in the villages where farmers are offered the cash option depending on average enrollment rate, the enrollment rate for each village the payout cycles, that is, more farmers are likely to register in varies; few of the villages show rise in the number of purchasers the year following a payout and less so after a “ good” year when this year while few show a decrease. In order to understand there is no payout. However, these assumption need to be varying enrollment rates in different villages, additional data for further tested. the ongoing monitoring and evaluation study will subsequent growing seasons will be essential. inform us of the factors affecting the demand over time by using multiple seasons of data. the average enrollment rate in the 32 villages where farmers were offered the cash option to purchase insurance for two Because the total IFW population served is constrained by the consecutive years has reduced from 10.54 percent in 2012 to 7.16 budget for the IFW component of the project, it is important to percent in 2013.If we break-down these villages by those who note that the demand for insurance in the 43 IFW villages received payout last year and those who didn’t, enrollment rate continues to increase from 91 percent paying fully with labor in for most of the villages (17 out of 19 cash-paying villages who 2011 to 93 percent paying 10 percent in cash and the remainder received payout) has gone down. We expect to see fluctuations in in labor to 98 percent paying 10 percent in cash and remaining in enrollment in these villages which are paying in cash as farmers labor; 2 percent chose to pay fully with cash. tend to dropout in years when there is no payout. of the 13 cash paying villages who received payout last year, the enrollment rate the insurance policies for the 2013 season will expire in october. has increased for 6 villages. the end-of-the-season assessment will determine whether there were any payouts in 2013. the results of the assessment will be on the other hand, in the villages where farmers have the option presented in the last quarter. to pay in labor, the average enrollment rate is more stable. For

Figure 7. percentage of farmers purchasing insurance with 100% cash vs 10% cash + labor

90% 81% 80% 68% 70%

60%

50%

40% 32% 30% 19% 20%

10%

0% 2012 2013

Farmers purchasing with 100% cash Farmers purchasing with 10% cash and remaining with labor

r4 Quarterly report | aprIl - JuNe 2013 9 Female vs. male purCHasers insurance with labor compared with where women only had the the comparison between the 43 IFW villages and 36 non-IFW option to purchase with cash. It will be important to understand villages continues to show significant difference in the percentage how the program is affecting women over time by using multiple of women purchasers. Interestingly, the percentage of women seasons of data and by examining the factors that impact purchasers is higher where women had the option to purchase women’s decisions to purchase insurance.

Figure 8. percentage of female vs. male purchasers Figure 9. percentage of female vs. male purchasers in iFW villages in 2013 in non-iFW villages in 2013

15%

34% Male Male Female Female 66% 86%

r4 Quarterly report | aprIl - JuNe 2013 10 r4 rural resilienCe in senegal: 2014 sCale-up plan guiding prinCiples in areas where r4 capacity has already been built, in order to In order to allow r4 to expand rapidly while maintaining the quality benefit from the investments already made in terms of technical and desired impact of its interventions, the Senegal scale-up plan is capacity building, infrastructure, institutional relationships, and based on the central principle of capitalizing on synergies with partnerships. at the same time, r4 will be introduced in new existing government programs, as well as programs being regions, thus establishing new r4 core areas which will in turn be implemented by WFp, oxfam, or other international or local partners. further expanded in following years. existing programs will thus be used as entry points upon which r4 components can be integrated progressively and in a complementary the Initiative aims to support 6,000 households by 2014 (36,000 manner. a key step in the scale-up process will therefore be beneficiaries) and 18,000 households by 2015 (108,000 identifying potential partnerships and programs to build upon. beneficiaries). the detailed roll out plan for 2014 has now been finalized, and the guiding principles and priorities for 2015-16 another principle that guides the scale up strategy is achieving have also been established. economies of scale. In practice, this means expanding operations

Women draw water from a well in a village in Senegal’s Koussanar rural community. under r4’s risk reduction component, participants create community vegetable gardens and help rehabilitate or construct new wells to irrigate these gardens. Mansi Anand / Oxfam America

r4 Quarterly report | aprIl - JuNe 2013 11 sCale-up in 2014 • High vulnerability to recurrent, external (but non-conﬂict Based on the guiding principles outlined above, as well as related) shocks ―in particular climate shocks ―which prevent measures of food insecurity and exposure to climatic risks, the households from accumulating assets and hinder their ability to regions of tambacounda (where the Koussanar pilot is currently make productive investments. being implemented) and Kolda (located in the south of the country) have been selected for scaling up r4 in 2014. Within • presence of existing programs or partners which are aligned these regions, a number of criteria have been used to identify the with one or more of r4’s four risk management components, speciﬁc communities for implementation. these criteria, which which the r4 framework can build on. are by no means absolute or exhaustive, but rather serve as general guiding principles, are listed below: • presence of strong and engaged producers’ or women’s associations, which can serve as entry points for r4 activities. • Household livelihoods primarily based on agriculture or pastoralism. • presence of promising potential local implementation partners (i.e. who manifest interest in participating in r4, and possess • High prevalence of chronic food insecurity. the necessary technical and organizational capacity).

Figure 10 . r4 senegal 2014 scale up areas, tambacounda and Kolda regions

r4 Quarterly report | aprIl - JuNe 2013 12 r4 will expand in 11 new communautés rurales in the sCale-up Beyond 2014 tambacounda region, to cover 3,500 households (approximately a national-level context analysis, carried out this quarter, 21,000 beneficiaries). In parallel, the Initiative will be introduced enabled the identification of the Kaolack and Kaffrine regions in 6 communautés rurales in the Kolda region, with a target of as the priority areas for r4 scale-up from 2015 onwards, 2,500 households (15,000 beneficiaries). beyond tambacounda and Kolda. this context analysis provides goes well beyond existing stand-alone food security and the new tambacounda sites will benefit from the capacities built nutrition assessments, to provide a more holistic picture of in this region through the Koussanar pilot, including capital what the priority regions for resilience-building are; as such, it investments (in particular weather stations for index-insurance); forms an essential first step in geographical targeting for scale- institutional relationships developed with local authorities, up. the analysis combines data on food security, nutrition, technical governmental agencies, and micro finance institutions; climatic risks, livelihoods, and population density ― amongst and technical capacity (both within the r4 team and amongst its other things ― to identify areas where important risks local partners). In addition, scale-up in the tambacounda region converge. It will be further informed by the results of the new is aligned with the expansion plans of two of r4’s key existing Comprehensive Food Security and Vulnerability analysis implementing partners: the NGo la lumière for the credit and (CFSVa) survey. the 2013 CFSVa, which was conducted in June savings components, and the agricultural insurance company by WFp in partnership with the Senegalese government, CNaaS for the risk transfer component. provides the most up-to-date and detailed data on household food security and livelihoods for the entire country. Kolda is characterized by high chronic food insecurity. the region benefits from the presence of existing WFp Food assistance for assets projects (which r4’s risk reduction and risk transfer components can build on), as well as community savings groups from oxfam’s SfC program (which the Credit and Savings components can build on). Kolda is also one of CNaaS’s priority expansion regions.

r4 Quarterly report | aprIl - JuNe 2013 13 ConClusion

Building on HarIta’s successful model for participatory design more likely to register for insurance if there was a payout the and capacity building, the r4 rural resilience Initiative ― now in previous year, and less so if there was no payout the previous its second year― continues to show promising results in ethiopia, year. Insurance take-up rates are also likely to vary depending on thanks to its innovative insurance-for-work (IFW) component. the the payout amount. In the coming seasons, the program will program has exceeded its goal of reaching 19,000 farmers by further refine these initial findings through the ongoing successfully expanding to 80 villages, including a pilot village in a monitoring and evaluation study. Data spanning multiple seasons new region of amhara. will be used to better understand how farmers perceive insurance, how significant the payout factor is in farmers’ this year’s enrollment results in ethiopia are encouraging. the decision to purchase insurance or not, and how that trend differs enrollment rate continues to increase in those villages where between villages where farmers only have the option to pay for farmers had the option to buy insurance in exchange for work. insurance with cash, compared to villages with both the cash and In villages where farmers only had the option to pay with cash, labor options. expansion to the amhara region will further test enrollment rates vary, with experience from past payouts being the pilot in a slightly different context. one of the deciding factors. results indicate that farmers are

a WFp staﬀ member helps women replant rice seedlings, in Senegal’s Koussanar rural community. Aliou Bassoum / Oxfam America

r4 Quarterly report | aprIl - JuNe 2013 14 In Senegal, the r4 team is continuing to pilot the program model With its successful initiation on the ground, the r4 partnership in the Koussanar area, while gearing up for scale-up in 2014. the set to enable many more vulnerable people to graduate from performance of a prototype weather-index for crop insurance is food insecurity through a community-oriented, risk management– being tested during the current agricultural season. this index will focused, and market-based approach to achieve rural resiliency. form the basis of the actual insurance product to be oﬀered to farmers in 2014.

r4 Quarterly report | aprIl - JuNe 2013 15 appendix i: r4 partners and institutional roles our loCal/national partners in etHiopia • Agence Nationale pour l’Aviation Civile et de la Météorologie • africa insurance Company: private insurer in ethiopia (ANACIM) - national meteorological and Civil aviation operating in the tigray, amhara, and oromiya regions. agency. Will help with the design of insurance product(s) by • dedebit Credit and savings institution (deCsi): Second-largest providing historical and current climate data, and installing microfinance institution (MFI) in ethiopia with nearly and maintaining weather stations. comprehensive coverage of tigray. Named by Forbes magazine • Centre d’Appui au Développement Local (CADL) - support as one of the top 50 MFIs in the world. Center for local development. a body of the Ministry of • ethiopian farmers’ cooperative: primary organizing body for regional Development and of local government, it is farmers in the community. responsible for coordinating rural development projects in • ethiopian national meteorological agency (nma): agency each Communauté rurale. Chairs the r4 local technical offering technical support in weather and climate data Committee in Koussanar, and is responsible for the analysis. coordination between the various local partners and for the • institute for sustainable development (isd): research overall coordination of all r4 components on the ground. organization dedicated to sustainable farming practices. • Crédit Mutuel du Sénégal (CMS) – mutual Credit of senegal. a • mekelle university: Member of National agricultural research microfinance institution with an important national coverage, System providing agronomic expertise and research. including in the tambacounda region. In Koussanar, it will be the • nyala insurance share Company: private insurer in ethiopia implementation partner for the risk taking (credit) component. with a strong track record of interest in agricultural insurance. • Compagnie Nationale d’Assurance Agricole du Senegal • organization for rehabilitation and development in amhara (CNAAS) - national agricultural insurance Company of (orda): established in 1984 with a focus on natural resource senegal. Senegal’s only agricultural insurance company management, food security and agricultural development in (public-private company founded in 2008 by the government). amhara. It will be the insurance provider for the product(s) offered • relief society of tigray (rest): local project manager for under the risk transfer component. HarIta, responsible for operating the productive Safety Net • Institut National de Pédologie (INP) - national institute for program (pSNp) in six districts of tigray and overseeing all pedology. technical agency affiliated with the Ministry of regional coordination. established in 1978. Working with agriculture, in charge of soil conservation and restoration oxfam since 1984 on development issues. largest projects, including building stone bunds and check dams, and nongovernmental organization in ethiopia (and one of the composting. largest in africa). • La Lumière. a grass-root Senegalese NGo which provides • tigray regional Food security Coordination office: office with financial services to low-income rural households. It is the oversight of the pSNp in the pilot area. current implementation partner for oxfam’s Saving for Change • tigray Cooperative promotion office: office responsible for program in Senegal, and will be the implementation partner helping organize farmers at the village level. for the risk reserves component in Koussanar. • Projet d’Appui à la Petite Irrigation Locale (PAPIL) - project to our loCal/national partners in senegal support small local irrigation. technical agency affiliated with • Agence Nationale de Conseil Agricole et Rural (ANCAR) - the Ministry of agriculture, in charge of lowland rehabilitation national agency for rural and agricultural assistance. and rice production activities. technical agency affiliated with the Ministry of agriculture. In • planet gurantee. Insurance broker specializing in micro- Koussanar, it is responsible for leading community awareness insurance for development and poverty reduction. In and mobilization activities, and providing seeds as well as Koussanar, it will help CNaaS commercialize r4’s insurance technical advice to farmers. like papIl and INp (listed below), product(s) by conducting awareness-raising and marketing aNCar is a key partner for the risk reduction component. activities among clients.

r4 Quarterly report | aprIl - JuNe 2013 16 • regional research Centre for the improvement of drought • goulston & storrs, and Weil, gotshal & manges: law firms adaptation (Ceraas). Will help with the design of insurance providing pro bono legal expertise. product(s) by helping create the rainfall index (including by • index insurance innovation initiative (i4) at university of contributing to studies on the use of remote sensing tools), California, davis (uC davis): research partnership on index and by carrying out crop monitoring. insurance between academia and development organizations, • Université Gaston Berger de Saint Louis (UGB). the second with uC Davis, the Food and agriculture organization of the university established in Senegal, specialized in Social Sciences, united Nations, International labour organization, and the uS economics and Business Management, political Science and agency for International Development. applied Science. uGB will provide the enumerators for FerDI’s • swiss re: Global reinsurer and leader on climate change risk transfer studies. advocacy with funding and technical expertise. • the international Fund for agricultural development (iFad): our gloBal partners a specialized agency of the uN focused on rural poverty • Fondation pour les Etudes et la Recherche sur le reduction, hunger and malnutrition. Développement International (FERDI): the Foundation for • the international research institute for Climate and society International Development Study and research was created in (iri): Member of Columbia university’s earth Institute offering 2003 on the initiative of CerDI- the Centre d’etudes et de research and technical expertise in climate data and weather recherches sur le Développement International (université index design for rural farmers. d’auvergne, France) to support research in the field of international economic development.

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r4 Quarterly report | aprIl - JuNe 2013 18 appendix iii: media Citations and resourCes

in tHe neWs • DesMoinesregister.com, “Crop Insurance Can pay off for Small african Farms ” (oct. 13, 2011). • Climate Change the New economy (CCtNe), the Guardian and united Nations environment programme (uNep), “G8 Climate • alertnet, “Scaling up Innovative Climate Change adaptation Change: the New economy” , (June, 2013). and Insurance Solutions in Senegal” (September 19, 2011). • united Nations office for Disaster risk reduction (uNISDr), • Global Washington blog, “reforming aid: transforming the “From Shared risk to Shared Value –the Business Case for World ” (Sept. 8, 2011). Disaster risk reduction. Global assessment report on Disaster • alertnet, Index Insurance in East Africa , a video produced by risk reduction” (May, 2013). the International research Institute for Climate and Society • Disaster risk Financing and Insurance program (DrFIp), Global (Sept. 2011). Facility for Disaster reduction and recovery (GFDrr), • reuters, “Swiss re Joins ethiopian Micro-Insurance project” “Senegal: Disaster risk Financing and Insurance Country Note” (June 10, 2011). (November, 2012). • tina rosenberg, “to Survive Famine, Will Work for Insurance” , • agence de presse Sénégalaise, “Sénégal: le projet r4 veut The New York Times (May 12, 2011). aider les agriculteurs à faire face aux changements • IrIN Humanitarian News and analysis, “ethiopia: taking the climatiques ”, AllAfrica (Nov. 13, 2012). Disaster out of Drought” (Nov. 24, 2010). • Sénégal – Humanitaire, “lancement au Sénégal d’une initiative • “Global Insurance Industry Statement on adapting to Climate de résilience rurale” , SousLeManguier (Nov. 14, 2012). Change in Developing Countries ”, ClimateWise, in • “Sécurité alimentaire: l’assurance agricole pour réduire les collaboration with the united Nations environment risques en zone rurale” , Le Soleil (Nov. 14, 2012). programme Finance Initiative, the Geneva association, and the • Stephan Faris, “Seeds for Change” , Time (Sept. 24, 2012). Munich Climate Insurance Initiative (MCII) (September 2010). • lisa Friedman, “Companies Begin to See Necessity and profits • evan lehmann, “Supporters of Global Insurance program Hope in adapting to Climate Change” , ClimateWire (July 11, 2012). to rebound after Dreary Copenhagen Summit,” ClimateWire (aug. 4, 2010). • Victoria eastwood, “Insurance Helps Kenya’s Herders protect against Drought” , CNN (June 18, 2012). • MicroRisk, “Swiss re Climate-linked Crop Insurance takes off” (July 2010). • Forum for agricultural risk Management in Development (FarMD), “oxfam & WFp’s r4 Initiative Begins expansion into • Deborah Kerby, “Climate Covered,” Green Futures (July 2010). Senegal, Fueled by Success in ethiopia” , FarMD Member • lloyd’s News and Features, “Microinsurance to Mitigate updates (June 5, 2012). Climate Change Impact” (June 4, 2010). • David Satterthwaite, “Weather Insurance Builds resilience for • anne Chetaille and Damien lagrandré, “l’assurance Indicielle, Farmers ”, Momentum (March 2012). une réponse Face aux risques Climatiques? ” Inter-réseaux • Jim French, “ethiopian Crop Insurance and the Secret Farm Développement rural (March 31, 2010). Bill” , Hutchnews (Dec. 22, 2011). this was also posted by: • pablo Suarez and Joanne linnerooth-Bayer, “Micro-Insurance treeHugger.com, all Voices: local to Global News, and the for local adaptation ”, Wiley Interdisciplinary Reviews: Climate World Food programme. Change (March 12, 2010). • David Bornstein, “News Flash: progress Happens” , The New • New england Cable News, “oxfam provides Farm Insurance in York Times (Dec. 15, 2011). africa” (Nov. 6, 2009). • agnieszka Flak, “Games Wake people up to Climate Change, ” • James F. Smith, “World’s poorest Farmers Now offered reuters (Dec. 2, 2011). Insurance” , The Boston Globe (oct. 13, 2009). • laurie Goering, “Insurance aims to Help Herders avoid • evan lehmann, “africa experiments with Climate Insurance— ‘Downward Spiral’ from Drought ”, AlertNet (Nov. 30, 2011). for $5 a year,” The New York Times (Sept. 30, 2009). • lisa Jones Christensen, “Case Study: Swiss re and oxfam” Financial Times (Nov. 1, 2011).

r4 Quarterly report | aprIl - JuNe 2013 19 • “Swiss re, oxfam america, rockefeller Foundation, and “Weather Insurance offers ethiopian Farmers Hope—Despite Columbia’s IrI expand Joint risk Initiative in tigray, ethiopia ”, Drought” Swiss re press release (Sept. 25, 2009). “Medhin reda’s Best asset Is Her own Hard Work” The Guardian • , “Climate Insurance: What Kind of Deal Can Be “Gebru Kahsay relies on rain But Has the Security of Insurance” Made in Copenhagen? ” (July 24, 2009). “Selas Samson Biru Faces uncertainty with the Seasons” • Jeff tollefson, “Insuring against Climate” , Nature (July 22, 2009). • Catherine Brahic, “an Insurance plan for Climate Change videos/multimedia Victims ”, New Scientist (July 1, 2009). Africa’s Last Famine, a documentary co-produced by oxfam • omer redi, “Insurance Firm Sows Seeds”, Addis Fortune (June america and link tV, featuring HarIta 14, 2009). R4: The Rural Resilience Initiative • Newsweek, “Coping with Climate” (Dec. 29, 2008). A Tiny Seed and a Big Idea A New Tool for Tackling Poverty aCademiC Journals and puBliCations • pablo Suarez and Jaanne linnerooth-Bayer, “Insurance-related Instruments for Disaster risk reduction ”, Global assessment pHotograpHy report 2011, International Strategy for Disaster risk reduction project photos are available upon request. See examples of (october 2011). photos used in the enclosed quarterly reports. • Joanne linnerooth-Bayer et al., “Drought Insurance for Subsistence Farmers in Malawi,” N atural Hazards Observer 33, no. partner reports 5, Natural Hazards Center, university of Colorado (May 2009). • HarIta IrI updated 2012 HarIta Initial end of Season • Molly e. Hellmuth, Daniel e. osgood, ulrich Hess, anne assessment october 2012. this report is a deliverable by the Moorhead, and Haresh Bhojwani, “Index Insurance and International research Institute for Climate and Society (IrI) to Climate risk: prospects for Development and Disaster oxfam america. It provides an early, exploratory assessment Management,” International research Institute for Climate of the 2012 rainfall season for the HarIta/r4 project in and Society (IrI), Columbia university (2009). ethiopia in terms of satellite rainfall estimates and their • peter Hazell, Jamie anderson, Niels Balzer, andreas Hastrup implication for the 2012 indexes. Clemmensen, ulrich Hess, and Francesco rispoli, “potential for • HarIta IrI report to oxfam america March 2012: this report Scale and Sustainability in Weather Index Insurance for agriculture is a deliverable by the IrI to oxfam america on the 2012 index and rural livelihoods,” International Fund for agricultural development processes and presents the final indices offered Development (IFaD) and World Food programme (March 2010). in the project villages. • Marjorie Victor Brans, Million tadesse, and takeshi takama, • HarIta IrI report to oxfam america May 2011: this report is “Community-Based Solutions to the Climate Crisis in ethiopia,” a deliverable by IrI to oxfam america on the 2011 index Clim ate Change Adaptation and International Development: development processes. It provides a description of the Making De velopment Cooperation More Effective, Japan indexes, their structure, their data sources, the design process, International Cooperation agency (JICa) research Institute and action plans for the project as well as a separate section (December 2010). with the educational materials used to support the 2010/2011 index development process. stories • HarIta IrI report to oxfam america June 2010: this progress “ethiopian Farmers Get a payout, easing effects of Drought” report is a formal deliverable by IrI to oxfam america and “With Insurance, loans, and Confidence, this ethiopian Farmer presents an overview of the scalable index insurance product Builds Her resilience” development process for the 2010 growing season. It explains “In Northern ethiopia, Weather Insurance offers a Buffer against the economic risk simulation games conducted with farmers to Drought” understand their risk-management decisions/preferences and also to educate them about index insurance packages.

r4 Quarterly report | aprIl - JuNe 2013 20 • technical annex: HarIta IrI report to oxfam america June otHer reports 2010: IrI has been working to build a formal statistical • Million tadesse and Marjorie Victor, “estimating the Demand methodology that will systematically compare and integrate for Micro-Insurance in ethiopia,” oxfam america (2009). a information on remote sensing of rainfall, ground-based data report commissioned by the International labour organization measurements, and other data sets. this report presents a and the united Nations Capital Development Fund. preliminary analysis that focuses on adi Ha—the pilot village— modeling rainfall at ﬁve neighboring sites, where daily rainfall • Woldeab teshome, Nicole peterson, aster Gebrekirstos, and amounts have been recorded during diﬀerent intervals for Karthikeyan Muniappan, “Microinsurance Demand assessment each site over the course of a 49-year time period, from 1961 in adi Ha” (2008). a study commissioned by oxfam america. to 2009. this methodology is intended to be further developed • Nicole peterson and Conner Mullally, “Index Insurance Games and packaged into tools for contract design and evaluation. in adi Ha Village, tigray regional State, ethiopia” (2009). a • HarIta IrI report to oxfam america october 2010: this study commissioned by oxfam america. progress report is a formal deliverable by IrI to oa that • Nicole peterson, “livelihoods, Coping, and Microinsurance in summarizes the 2011 scaling process and presents the adi Ha, tigray, ethiopia” (2009). education materials developed to support the scaling process. • tufa Dinku et al., “Designing Index-Based Weather Insurance for Farmers in adi Ha, ethiopia,” IrI (2009). report to oxfam america.

r4 Quarterly report | aprIl - JuNe 2013 21 the treasurer of a Savings for Change (SfC) group, in Senegal’s Koussanar rural community, collecting members’ dues during one of the group’s weekly meetings. Katie Naeve/ Oxfam America

r4 Quarterly report | aprIl - JuNe 2013 22

Collaboration the r4 rural resilience Initiative is a strategic collaboration between the World Food programme and oxfam america, with no commingling of funds. each partner has its own sponsors as listed. r4 is inviting donors to support expansion.

the World Food programme is the oxfam america is an international relief world’s largest humanitarian agency and development organization that creates ﬁghting hunger worldwide. each year, on lasting solutions to poverty, hunger, average, WFp feeds more than 90 million and injustice, working with individuals people in more than 70 countries. and local groups in more than 90 countries. oxfam america does not receive www.wfp.org/disaster-risk-reduction funding from the uS government. www.oxfamamerica.org/r4

With support from With support from