R4 Rural Resilience Initiative ANNUAL REPORT JANUARY - DECEMBER 2019 Cover: Farmers from the Moatize district in Tete Province, Mozambique participate in a focus group activity conducted in preparation for the Green Climate Fund (GCF) project proposal, approved in November 2019. WFP/Mathieu Dubreuil Contents
Acronyms 3
Zimbabwe: Marching towards starvation 7
Executive Summary 8
Foreword 10
The R4 Rural Resilience Initiative 11 Background 11 The R4 model 11
Project Status 13 Ethiopia 14 Senegal 18 Malawi 22 Zambia 27 Kenya 32 Zimbabwe 38 Burkina Faso 43 Mozambique 46
The Risk Transfer Component 50 Microinsurance at WFP 51
Monitoring, Evaluation, and Learning (MEL) 55 Key Findings and Recommendations 56
Where are we and where are we going? 63 Looking ahead 65
Annex 1. Metrics from the Field 67
Annex 2. Rural Resilience Event Series 73
Annex 3. R4 Achievements 75
Annex 4. Media Citations and Resources 76
Annex 5. R4 Partners and Institutional Roles 82
Annex 6. Donor contributions to R4 87 Figures Figure 1. R4 Countries Map 6 Figure 2. R4 achievements 9 Figure 3. R4 achievements by indicator 13 Figure 4. Ethiopia 2019 seasonal calendar 16 Figure 5. Senegal 2019 seasonal calendar 20 Figure 6. Malawi 2019 seasonal calendar 24 Figure 7. Zambia 2019 seasonal calendar 29 Figure 8. R4 progress in Kenya, Kitui county (2017-2019) 34 Figure 9. Kenya 2019 seasonal calendar 35 Figure 10. Zimbabwe 2019 seasonal calendar 40 Figure 11. Burkina Faso 2019 seasonal calendar 45 Figure 12. Mozambique 2019 seasonal calendar 48 Figure 13. Calendar of rainy seasons in R4 countries 51 Figure 14. Timeline of M&E surveys or analysis conducted in 2019 56 Figure 15. Growth Ratio indicator in R4 countries 57 Figure 16. Promptness of Claims Settlement indicator in R4 countries 58 Figure 17. Consumer Protection Investment Ratio indicator in R4 countries 59 Figure 18. Utility Ratio indicator in R4 countries 59 Figure 19. Reported use of payout in Kenya 60
Tables Table 1. Resilience beneficiaries by activity 24
2 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Acronyms
ADRA Adventist Devel opment and Relief Agency AIC Africa Insurance Company ANACIM Agence N ationale pour l’Aviation Civile et de la Météorologie ANCAR Agence Nationale de Conseil Agricole et Rural ARC African Risk Capacity AQZ Aquaculture Zimbabwe AYII Area Yield Index Insurance ASALs Arid and Semi-arid Lands ASAP2 Adaptation for Smallholder Agriculture Programme BCM Beneficiary Contact Monitoring BMZ The Federal Ministry of Economic Cooperation and Development CA Conservation Agriculture CASU Conservation Agriculture Scale Up Project CBPP Community-based Participatory Planning CIMMYT International Centre for Maize and Wheat Improvement CNAAS Compagnie Nationale d’Assurance Agricole du Sénégal CO Country Office CSA Climate Smart Agriculture CSP Country Strategic Plans DAPP Development Aid from People to People DCCMS Department of Climate Change and Meteorological Services DECSI Dedebit Credit and Savings Institution DFID UK Department for International Development DMMU Disaster Management and Mitigation Unit DoDMA Department of Disaster Management Affairs EbA Ecosystem-based Adaptation EIG Economic Interest Group FAO Food and Agriculture Organisation FbF Forecast-based Finance FEWS NET Famine Early Warning Systems Network FFA Food Assistance for Assets FGD Focus Group Discussion FHH female-headed household FICA Government of Flanders International Cooperation Agency FISD Foundation for Irrigation and Sustainable Development
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 3 GALS Gender Active Learning System GCF Green Climate Fund GFCS Global Framework for Climate Services HARITA Horn of Africa Risk Transfer for Adaptation HGSF Home-Grown School Feeding IDPs Internationally Displaced Persons IFAD International Fund for Agricultural Development IGA Income Generating Activity INAM Mozambique N ational Meteorology Institute INGC National Institute of Disaster Management IRI International Research Institute for Climate and Society ISD Institute for Sustainable Development LSA Lean Season Assistance KCEP-CRAL Kenya Cereal Enhancement Programme- Climate Resilient Agricultural Livelihoods Window KfW German state-owned development bank KOICA Korea International Cooperation Agency KPI Key Performance Indicators MAL Ministry of Agriculture and Livestock MAER Ministry of Agriculture and Rural Equipment MASA Ministry of Agriculture and Food Security MEL monitoring, evaluation and learning MITADER Ministry of Land, Environment, and Rural Development MLAWCRR Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement MoA Ministry of Agriculture MoALF&I Ministry of Agriculture, Livestock, Fisheries, and Irrigation MoFEP&D Ministry of Finance, Economic Planning and Development NbS Nature-based Solutions NDMA National Drought Management Authority NDP National Development Plan NMA Ethiopian National Meteorological Agency NORAD Norwegian Ministry of Foreign Affairs OA Oxfam America OIC Oromia Insurance Company ORDA Organization for Rehabilitation and Development in Amhara PADAER Programme d’A ccélération de la Cadence de l’Agriculture Sénégalaise Développement Agricole et à l’Entreprenariat Rural P2RS Multinational programme to build resilience to food and nutrition insecurity in The Sahel PICS Purdue Improved Crop Storage (PICS)
4 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 PICSA Partcipatory Integrated Climate Sercives for Agriculture PRSP Department of Poverty Reduction and Social Protection PSNP Productive Safety Net Program PSP Participatory Scenario Planning REST Relief Society of Tigray RUSACCO Rural Savings and Credit Cooperative RWH Rain Water Harvesting Systems SAMS Smallholder Agricultural Market Support SDC Swiss Agency for Development and Cooperation SfC Saving for Change SIDA Swedish International Development Cooperation Agency SIIPE Satellite Index for Pastoralists in Ethiopia SNV The Netherlands Development Organisation SNNRP Southern Nations, Nationalities, and People’s Region ToT Trainings of Trainers USAID United States Agency for International Development WAM Water Access and Water Management WII Weather Index Insurance WFP World Food Programme VESA Village Economic and Social Associations VFM Virtual Farmer’s Market VFZ Vision Fund Zambia VSLG Village Savings and Lending Group ZMD Zambia Meteorological Department
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 5 FIGURE 1. R4 Countries Map
R4 Rural Resilience Iniave
8,206 28,692 HOUSEHOLDS HOUSEHOLDS 52 PERCENT 42 PERCENT WOMEN WOMEN
US$269 SUM US$73 SUM INSURED INSURED PER FARMER PER FARMER
US$21,792 PAYOUTS US$86,983 PAYOUTS FOR 713 FARMERS IN FOR 6,157 FARMERS 2019/20 IN 2019/20 SENEGAL BURKINA FASO ETHIOPIA
KENYA 8,862 702 7,822 HOUSEHOLDS HOUSEHOLDS 85 PERCENT HOUSEHOLDS WOMEN 53 PERCENT 49 PERCENT WOMEN WOMEN US$119 SUM INSURED MALAWI PER FARMER US$130 SUM INSURED US$60 SUM INSURED PER FARMER PER FARMER US$128,323 ZAMBIA PAYOUTS FOR 5,612 US$0 PAYOUTS IN US$452,170 IN 2018/19 2019/20 PAYOUTS FOR 7,821 FARMERS IN 2018/19 ZIMBABWE
1,651 HOUSEHOLDS 37,891 66 PERCENT WOMEN LEGEND HOUSEHOLDS CURRENT R4 71 PERCENT US$100 SUM INSURED WOMEN PER FARMER COUNTRIES POTENTIAL US$155 SUM INSURED US$ 0 PAYOUTS EXPANSION PER FARMER IN 2018/19 CCOOUUNNTTRRIIEES US$0 PAYOUTS IN 2018/19 TOTAL 93,826 FARMERS US$ 12,203,353 SUM INSURED US$ 108,775 IN PAYOUTS TO 6,870 FARMERS
6 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Zimbabwe: Marching towards starvation
World Food Programme, September 2019
This section reports an article published in September 2019 on the integrated climate risk management approach in Zimbabwe.
“People are marching towards starvation if we are not here to Through the ir work on asset cre ation, farmers also re ce ive weather help them,” said the World Food Pro gramme’s (WFP) Executive index insurance policie s that prote ct the m from the ir bigge st thre at Director, David Be asley, after concluding a recent trip to — drought. The se policie s provide financial payouts when rainfall Zimbabwe. “We are facing a drought unlike any that we have drops to leve ls that correspond with extreme drought conditions seen in a long time,” he added. and re sulting crop losse s, e nsuring that the inve stme nts farme rs made on the ir plots do not go to waste . Extreme drought is exacerbating the effe cts of the unpre ce de nte dly strong cyclone that hit the country in March and an ongoing The integrated approach also incentivizes farmers to build up e conomic crisis that has pushed inflation ove r 175 pe rce nt in savings through community savings and loans schemes. This June, making price s of staple foods out of reach for 2.5 million ensures that they can cope with other shocks unrelated to Zimbabwe ans. As a re sult, more than 5.5 million people , or a third drought and crop failure, and will eventually be able to afford the of the population, will be in ne e d of humanitarian assistance by insurance premiums on their own, without assistance from WFP. next ye ar. To re spond to this eme rge ncy situation, WFP nee ds This is a key component to creating a thriving insurance market US$173 million to provide assistance during the le an season. and lasting impact for smallholder farmers.
Zimbabwe’s high climatic variability results in frequent drought The savings groups have had a multiplier effect on the other years as well as flood events, both of which have hit the country activities, especially for women. “Through the WFP intervention, I in 2019. Higher te mperatures in the future are projected to learned life skills. (…) We are not the same people we were in the threaten crop harvests and water availability, making it essential past. We feel empowered,” says Praise Chipare, a member of a for farme rs and communities to adapt to and manage increasing saving group in Masvingo. risks to their food production and income. People receive trainings on how to turn their farms into a One of the ways in which WFP is trying to avert the worst and business, together with support on getting their crops to markets. make sure people have enough to e at is to build their ability Thanks to all these efforts, just afte r one year of implementation, to withstand climate-related shocks. Starting in 2018, WFP WFP has been able to purchase more than 6.5 metric tons of began implementing an integrated resilience approach in white sorghum from the farmers. Masvingo District, which combines activities that reduce farmers’ vulnerability to climate shocks, such as building soil and water “Because of this project, these communities will no longer need conservation infrastructure at the watershed level, establishing our help,” said David Beasley when he visited Masvingo. “We are nutrition gardens, and training in conservation agriculture now even buying food from them to feed other communities in practices that increase yields, reduce land degradation and Zimbabwe.” promote the use of drought-tolerant seeds. Through increasing the number of smallholder farmers protected WFP is expanding the scope of this initiative this year to assist from the threat of drought, Zimbabwe will be more prepared for over 2,000 families in the district in managing their climate risks. future climate shocks, hopefully avoiding them leading to new Each community will be supported over a period of three years, food crises. and this integrate d approach has become a blueprint for further expansion in other areas of Zimbabwe. WFP is expanding the integrated approach in Zimbabwe through funding from the Swiss Development and Cooperation Like many of his fellow community members, 49-year-old Andrias, Agency (SDC), USAID, and thanks to a grant awarded by the a farmer from Chebvute, has been hit hard by the drought. He Green Climate Fund, a multilateral fund established by the UN is enthusiastic about the nutrition garden: “We are selling these Framework Convention on Climate to assist developing countries vegetables to schools and we are looking forward to expanding in adaptation and mitigation practices that counter climate this garden so that we can have bigger profits”. change.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 7 A group of farmers from the Kilte Awulaelo woreda in Tigray, Ethiopia meet under a tree to discuss and identify the worst years for crop failure due to drought since 1983. This information will validate the data that WFP and its partner has collected to design an index insurance product that will protect farmers from drought risk. WFP/Michael Goode
Executive Summary
In 2019, the R4 Rural Resilience Initiative (R4) re ached over Ethiopia. In Senegal, a total of 8, 206 farme rs (52 percent 93, 000 farmers (60 pe rce nt wome n) benefiting approximately women) were insured this se ason. In Malawi, R4 insure d 600, 000 pe ople in Ethiopia, Se negal, Malawi, Ke nya, Zambia, 37, 891 farmers (71 pe rce nt wome n) for the 2019/20 season Zimbabwe , and Burkina Faso. Of these farme rs, ove r 5, 000 and is piloting a hybrid index insurance product in three accessed insurance developed through the R4 initiative: eithe r districts, that brings together We ather Index Insurance (WII) through subsidie s from other donor-funded programmes or by with Are a Yield Index Insurance (AYII), providing farmers paying the pre mium cost fully with their own cash. with a more comprehensive insurance cove rage . In Zambia, no new insurance enrolme nts were unde rtaken, following R4 saw a one perce nt growth in the numbe r of farmers insure d re commendations made by the Mid-Term Review (MTR) of in 2019, with this year’s focus be ing on consolidating the the R4 Programme in Southern Africa commissioned by the gains achieved so far in existing countries and pre paring for Swiss Age ncy for Development and Coope ration (SDC), with next year’s geographical expansion. In Ethiopia, the initiative WFP Zambia now focusing on consolidating the gains obtaine d re ache d over 28, 000 farmers (42 pe rce nt wome n) with so far and supporting sustainability plans. In Ke nya, a total of microinsurance . This year, activities focuse d on building the 8,862 farmers (85 percent women) we re insured for the 2019 index design capacity of local stake holde rs in the country and Short Rains season. In Zimbabwe, R4 insure d 1, 651 farmers (66 defining the ste ps for handing ove r de sign and distribution percent women) and expanded to three additional wards. In of microinsurance products to the local insurance companies addition to microinsurance , Zimbabwe be came the first-eve r from 2020 onwards. Under the Satellite Index Insurance for country in Southern Africa to te st the ARC Replica instrument Pastoralist in Ethiopia (SIIPE), 7, 816 pastoralists accessed in collaboration with the Government of Zimbabwe and the index-based livestock insurance in the Somali region of African Risk Capacity (ARC) Ltd.
8 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 In 2019, R4 expanded to Burkina Faso, where the initiative R4 also made significant investments in 2019 for building the insure d 702 farme rs (53 pe rcent women). 2019 also marked technical and programmatic capacity of local stakeholders and the expansion of R4 to Mozambique , whe re the initiative governments to e nsure national ownership of insurance products will be pilote d this year. Dry spe lls in Ethiopia and Se negal and syste ms. In addition, the initiative began taking concrete during the 2019 agricultural season triggere d payouts totalling steps to offer new insurance products, such as hybrid indices. US$108,775. A total of 713 farmers receive d an insurance R4 has also made strides in integrating the approach with WFP’s payout of US$21, 792 in Sene gal, and 6,157 farmers re ceive d a other climate risk financing programmes; strengthening and payout of US$86, 983 in Ethiopia. Moreove r, dry spells during standardizing monitoring, evaluation and learning across the the 2018/19 agricultural season triggere d payouts in Zambia entire portfolio; and preparing for expansion of the programme totalling US$452, 170 to 7, 821 farme rs. into new regions of existing countries as well as new countries where R4 will begin implementing for the first time.
FIGURE 2. R4 achievements
Planng 2016 2017 2018 2019 year
US$17,000 US$320,000 US$24,000 US$38,000 US$450,000 US$74,000 US$1.5m US$590,000 US$109,000
US$2,500 US$27,000 US$215,000 US$275,000 US$283,000 US$306,000 US$362,000 US$770,000 US$1.1m US$1.7m US$1.6m
US$10,200 US$73,000 US$940,000 US$1.3m US$1.2m US$1.5m US$2.2m US$4.9m US$6.6m US$10.3m US$12.2m
$ $ $ $ $ Cash contribuon US$43,000 US$86,000 US$78,000 US$128,000 US$56,000
R4 Farmers insured through WFP
(percent 200 1,308 13,195 19,407 20,015 24,970 29,279 37,419 51,955 87,557 88,790 of women) (38) (39) (33) (21) (31) (33) (32) (40) (50) (55) (60)
Non-R4 Farmers insured* 3,918 4,448 6,603 5,763 5,036
Ethiopia Ethiopia Ethiopia Ethiopia Ethiopia Malawi Malawi Kenya Kenya Kenya Senegal Senegal Malawi Malawi Malawi Zambia Zambia Senegal Senegal Senegal Zambia Zambia Zambia Zimbabwe Zimbabwe Burkina Faso
* Farmers accessing insurance products developed through the R4 Iniave, but not directly parcipang in the R4 programme or farmers that have graduated from the programme and are paying their insurance premium fully in cash.
Our vision: 500,000 insured farmers in 2022.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 9 Foreword
The effe cts of the climate crisis are impacting households, management that brought WFP’s own programme s closer together, communities and nations all over the world. With global ave rage but also found opportunities for scale through gove rnment syste ms, tempe rature s surpassing 1.1°C de gre es above pre-industrial leve ls, strategies and policies. As the programme is moving into its next we se e increasing climate impacts on patterns of displace me nt, phase of scaling up via WFP country strategie s and programmes, conflict and food security.1 Climate variability and extre me weathe r Oxfam America is transitioning from its role as an institutional eve nts are among the key drivers be hind the global incre ase to a te chnical partner. I want to take this opportunity to thank in hunger and one of the leading causes of seve re food crise s. Oxfam America for the ir pione ering role in creating, deve loping, Countries that are highly de pe ndent on rainfed agriculture are and transferring the HARITA model outside Ethiopia and for their e specially vulnerable , with 2019 se eing food se curity deteriorate in leade rship in helping WFP expand and scale up the R4 approach to many of the countrie s in the Greater Horn of Africa due to climate the point of maturity where it finds itself in 2019. A documentation shocks, le aving an e stimate d 22.2 million pe ople severely food of Oxfam’s collaboration in the R4 global partne rship will refle ct inse cure by the end of the year.2 good practices and le ssons learned over the past 9 years, and we will continue to collaborate on k nowledge sharing. To address the impacts of climate change on food security, the World Food Programme focuse s on the principle of inte grated In 2019, the R4 Initiative has provide d 93, 000 participants (60 climate risk manage me nt. This te rm refe rs to a combination of pe rce nt wome n) in Ethiopia, Sene gal, Malawi, Zambia, Ke nya, strategies that addre ss both the climatic as well as non-climatic Zimbabwe, and Burkina Faso with acce ss to index insurance and factors contributing to pe ople ’s vulne rability. We recognize that a a range of comple mentary risk manage ment options. Burkina comprehensive set of risk financing strategies and tools are e sse ntial Faso was a new e ntry, with over 700 house holds able to access for an effective early response to climate shocks, and for a faste r an insurance policy in 2019. At prese nt, a number of additional recovery of affected households. In this context, WFP has le d the countries have expressed interest in introducing risk transfe r way in deve loping innovative microinsurance solutions, which, whe n instruments into WFP country programme s to strengthe n the integrated with comple me ntary measures to strengthen access to resilie nce of communitie s and food syste ms. N otably, this involves natural and financial capital, provide vulne rable populations with an a transfer of the R4 approach from African contexts to Asia and effe ctive safety net against climate shocks and stresses. Latin America. Fe asibility studies or proje ct design efforts are currently unde r way or being planne d in Bangladesh, Cuba, El The R4 Rural Resilience Initiative is WFP’s flagship approach for Salvador, Guatemala, Mali, Mozambique and Uganda. integrated climate risk management. The programme he lps smallholde r farmers become more resilie nt to climate risks through Traditional and new donors are committe d to supporting R4 a combination of four integrate d objective s: Reducing the risks of and to scaling-up this trie d and teste d approach to climate risk climate-related shocks through nature-based solutions and assets; manage me nt in new and existing countries. In 2019, the Gre en transferring the risk of catastrophic events to the private insurance Climate Fund (GCF) has committe d US$ 8.86 million for the market; building risk reserve s through the promotion of capital expansion of R4 in Zimbabwe , allowing it to reach a target of savings; and promoting prudent-risk taking through access to credit 10, 000 vulnerable households. The GCF also approved WFP’s for livelihoods diversification and small-scale inve stments. This has proposal for the scale-up of R4 in Mozambique: The US$ 10 million the added benefit of addressing pre-existing structural challe nges proje ct include s US$ 9.25 million in financing from the GCF, U S$ that are often aggravated by climate change , such as poor access 600, 000 co-financing from Flande rs, and US$ 150, 000 from the to agricultural inputs, financial services and assets. Togethe r, the Cartier Foundation. In its initial phase the project is expected to different components do not only protect smallholde r farmers from reach 80, 000 beneficiarie s. More ove r, the Adaptation Fund (AF) climate hazards and extre me eve nts, but also promote savings and has committed US$ 9.9 million for the scale -up of R4 in Malawi, access to cre dit. This strengthens the food and income security of expanding the numbe r of be neficiaries from 37, 000 to 85, 000. farmers in an increasingly unce rtain environment. 2020 will continue to see an important expansion of the R4 Initiative within its curre nt programme settings, as well as in Over the past 9 years, WFP has worked with Oxfam Ame rica to seve ral new countries in the Sahel, South Asia and the Latin translate the R4 conce pt into a context based, participatory and America and Caribbean region. We thank all our donors and result-orie nte d model for climate risk manage me nt that could be partne rs for the good collaboration in 2019 and look forward to systematically incorporated into WFP country strategie s. This effort continuing this important work in 2020. has promote d inte gration with othe r aspects of WFP’s programme s, such as asset cre ation and livelihoods, social protection, smallholder Gernot Laganda access to markets and nutrition. Over the ye ars, R4 has evolved Chief, Climate and Disaster Risk Reduction Programmes from a community-based programme into a laye re d model of risk World Food Progr amme
1. WMO (2020). Statement on the State of the Global Climate 2019. 2. Ibid.
10 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 A facilitator stands among a group of farmers participating in a focus group activity in Moatize district of Tete Province, Mozambique. WFP/Mathieu Dubreuil
The R4 Rural Resilience Initiative
R4 currently reaches 93,826 vulnerable farmers (60 pe rce nt Background women) and their familie s in Ethiopia, Sene gal, Malawi, Vulnerability to climate-related shocks is a constant threat to Zambia, Kenya, Zimbabwe, and Burkina Faso with an integrate d food security and wellbeing. As climate change increases the risk management strate gy that combine s four components: frequency and intensity of shocks, the challenges faced by food improved natural resource management through asset insecure farmers will also increase. In this context, building creation or improved agricultural practices (risk re duction), resilience to climate change for long-term food security and microinsurance (risk transfe r), increased investment, livelihoods improvement becomes essential. livelihoods diversification, and microcredit (prude nt risk taking) and savings (risk re serves). Of these farmers, 5, 036 accessed insurance developed unde r R4, e ither subsidized The R4 model through other programmes or paying fully in cash.
The R4 Rural Resilience Initiative (R4) began as a strategic partnership between the World Food Program (WFP) and Oxfam America in 2011 to build on the success of Oxfam America’s pilot project HARITA (Horn of Africa Risk Transfe r for Adaptation) that broke new ground in the fie ld of rural risk management. Afte r the successful expansion of the R4 Risk Reducon Risk Transfer integrated approach unde r the global partne rship, in Octobe r R4 2018, Oxfam Ame rica transitioned into an advisory role with
WFP taking the lead on the manage me nt and scale-up of $ R4 ope rations, globally. WFP gratefully ack nowledges the $ pioneering role Oxfam America playe d together with the Prudent Risk Reserves Risk Taking communities, the Relief Society of Tigray (REST) and other local and international actors in creating, deve loping, and Social Safety Net transferring the HARITA model outside Ethiopia.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 11 $
Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
R1. Risk Transfer $ R3. Prudent Risk Taking R4 enable s the poorest farmers to$ purchase $ Smallholde r farme rs are often reluctant to agricultural insurance . R4 has bee n one of the Prudent invest in productive inputs or hired labour $ Risk Reserves Risk TakingPrudent most successful efforts to scale up weather Risk Taking as theRisk ir Refarmsduco aren vulne rable to external Risk Reducon Risk Transfer Risk Reserves Risk Transfer index insurance (WII), a financial product based shocks. They may, thus, prefe r low input – low on an estimated rainfall index highly corre late d output production syste ms that guarante e a R4 to the worst rainfall deficit events (droughts and dry spe lls) pre dictable, although low, income . Microfinance institutions may $ experienced by communities. Payouts are triggere d by pre -specified limit inve stments be cause of the pe rceive d high risk of default in $ patte rns of the index rather than actual yields, thus eliminating bad seasons. With incre ase d food security and a stronge r asset Prudent the nee d for in-field assessment. Rapid compensation for we ather- base, R4$ farmers can incre ase their savings and stocks, using the m Risk Reserves Risk Taking relate d losses means farmers can avoid se lling productive assets alongRisk Rewithserves insurance as collateralRisk Transf toer obtain cre dit for investing in and re cover faste r from droughts. Predictable income can reduce productive assets such as se eds, fertilize rs and new technologies $ negative coping strate gies and e ncourage rural households to that incre ase productivity. Moreover, insured farmers are more invest in activitie s and technologies with highe r rate s of return. confidentPrudent to take out loans and invest in productive inputs, including Insurance can also serve as collateral to obtain credit at better rates hireRisk d labour, Taking knowing thatRisk the Reduco financialn risk of drought is minimized. Risk Reducon Risk Transfer and give enough confide nce to farmers to invest more . R4 is also R4 implementing an Area Yield Index Insurance (AYII) product as part of its risk transfer compone nt in Kenya. AYII can offe r cove rage against R4. Risk Reserves $ a host of risks affecting an entire area including pe sts and uses Through individual or group savings, $ crop sampling at the e nd of season to determine value loss. Due to farmers can build a financial base that Prudent $ Risk Reserves Risk Taking the inherent design of AYII, expecte d payout timeframe is longe r serve s multiple purposes. For instance, Risk Reserves Risk Transfer compared to weather index-based insurance , but shorter than they provide a buffer for short-te rm needs, traditional agriculture insurance. R4 is also piloting hybrid WII and incre asing a house hold’s ability to cope with AYII products in select countries this year. shocks. Group savings can be loaned to individual membe rs with particular ne eds, providing a se lf-insurance me chanism for the community. Savings can also be accumulated in-k ind, R2. Risk Reduction for example through cereal banks which allow farmers to stock $ Those house holds that are cash constraine d surplus yie lds or livestock. have the option to pay insurance pre miums Prudent Risk Taking Risk Reducon by engaging in asset creationRisk activitie Reduco ns or by Risk Transfer adopting improve d agricultural practice s. Assets built or re habilitated through these activitieR4 s (such as wate r and soil conse rvation infrastructure ), promote resilience by steadily decreasing vulnerability to climate risks. They $ also promote highe r productivity by building the natural$ asset base Prudent $ available to farmers. The risk reduction componeRisk nt is Re usuallyserves built Risk Taking Risk Reserves intoRisk gove Transf rnmenter safety net and other programmes, as we ll as WFP Food Assistance for Assets (FFA) initiatives.
Farmers contribute the ir labour to risk reduction activitie s identifie d through participatory assessment and planning. In Ethiopia, Malawi, Zimbabwe , and Sene gal, asset cre ation activities have contribute d to natural resource re habilitation and agricultural development. In Zambia, farme rs apply conservation agriculture (CA) techniques to improve their agricultural productivity and sustainability. In Kenya, farmers receive te chnical assistance from exte nsion services and field partners on good agricultural practise s, including soil and wate r conservation techniques.
12 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Smallholder farmers, Kidane Glhiwoz and Abeha Halsiase, recall the worst seasons for crop failure in the last 30 years in an interactive exercise that will inform the design for a microinsurance product to protect their livelihoods from drought risk in Tigray, Ethiopia. WFP/Michael Goode
Project Status
R4 reached 93,826 farmers in Ethiopia, Senegal, Malawi, Zambia, either subsidized through other donor-funded programmes or Kenya, Zimbabwe, and Burkina Faso in 2019. Of these farmers, paying fully with their own cash. This year, the total sum insured 5,036 accessed insurance developed through the R4 initiative, amounted to approximately US$12.2 million.
FIGURE 3. R4 achievements by indicator3
Insured Participants Sum Insured 100,000 12,000,000 90,000 80,000 10,000,000 70,000 8,000,000 60,000
50,000 6,000,000 40,000 30,000 4,000,000 20,000 2,000,000 10,000 0 0 2017 2018 2019 2017 2018 2019
Ethiopia Senegal Malawi Zambia Ethiopia Senegal Malawi Zambia Kenya Zimbabwe Burkina Faso Kenya Zimbabwe Burkina Faso
3. For the exact figures, please see Annex III.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 13 The focus group facilitator, Fairuz Temam, enters answers into a tablet that will that will aggregate the data from all the expansion villages on smallholder farmers’ crop production and seasonal calendar in Amhara, Ethiopia WFP/Michael Goode
R4 28,692 households (144, 033 persons) Ethiopia 42 percent women 2019 Tigray and Amhara regions AIC, DECSI, Ethiopian farmers’ cooperative, IRI, ISD, Mekelle University, NMA, OIC, ORDA, REST, Since 2009 RIB Union
KfW, IFAD
Key Achievements • Sustainability: 24,189 farmers paid 25 percent of their insurance premium in cash and 2,312 farmers paid their premium fully in cash. . • Cumulative value of savings: US$35,021 from VESAs and US$757,353 from RUSACCOs.
14 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 R4 Programme in Ethiopia 2019 Agricultural season: Below average rainfall In Ethiopia, R4 builds on the initial success of the Horn of during Belg rainy season and average to above Africa risk transfer for adaptation (HARITA) initiative, started in average rains during Kiremt rainy season 2009 by Oxfam, the Relief Society of Tigray (REST), and several The 2019 agricultural season was characterized by erratic other national and global partners. The initiative builds its risk rainfall distributions and dry spells during the Belg rainy season reduction component on the government’s Productive Safety Net (February- May) and normal to above normal rainfall during the Programme (PSNP). Kiremt rainy season (June-September).
Risk Reduction component: The risk reduction Due to the late start, long dry spells, and below-average Belg $ component builds on the national Productive rainfall, late planting occurred in many Belg-producing areas
Prudent Safety Net Programme (PSNP)’s public works. especially in central and eastern Oromia, and some areas of Risk Taking Risk Reducon The model is focused onRisk a Re community-basedducon Risk Transf er eastern Amhara and southern Tigray. The overall 2019 Belg watershed development approach,R4 developed harvest are estimated to be below average in most Belg- by WFP in collaboration with the Government producing areas of the country.4 of Ethiopia during the MERET programme. In$ $ order to build long-term resilience, farmers K ire mt rainfall from June to August 2019 has bee n ave rage $ Prudent work on soil and waterRisk conservation, Reserves waterRisk Ta king to above ave rage across most Kiremt rain re ce iving are as; Risk Reserves Risk Transfer harvesting, small scale irrigation, agroforestry however, be low average rainfall has be en note d in localize d
$ and reforestation programmes for a number of areas. Ge nerally, planting of 2019 Me he r crops was timely and selected days on top of the PSNP public works the area plante d of short and long maturing crops was ne ar Prudent Risk Taking Risk Reducon to receive crop insuranceRisk Recoverage.ducon TheRisk activity Transfer normal in major Me he r producing parts of Ethiopia. De spite is implemented by the implementing partners. localized crop losses due to poor rainfall, national Me her R4 production was near average.5
Risk Transfer component: By building assets, $ farmers can access we ather$ index insurance. Prudent $ In orde r to be insured farmeRisk Re rsserves should workRisk on Taking Project Status Risk Reserves Risk Transfer asset betwee n two and seve n days, de pending R4 has been working in 87 villages located across 12 districts in on the sum insured participants require, as the Tigray and Am hara regions of Ethiopia. In 2019, the Country the ir contribution to the premium. The cash Office rec ruited four consultants to conduct assessments and contribution is colle cted by the Rural Saving and develop the Targeting, Graduation, Savings and Credit strategies Cre dit Coope ratives (RUSACCOs) and REST or the to determine a transparent process and criteria for these key
$ Organization for Rehabilitation and Development areas of the project. Precisely, these strategies aim to establish in Amhara (ORDA) and the n paid to the insurance new methods for targeting the project beneficiaries, as well Prudent Risk Taking companyRisk Reduco branch.n In 2019, participants contributeRisk Reduco d n as pathwaysRisk Transfer and benchmarks to facilitate the graduation of 25 pe rce nt of the total premium cost. beneficiaries. R4
Risk Reserves and Prudent Risk Taking These strategies$ developed guidance for key implementation components: Farmers practice regular savings$ activities such as criteria for expanding targeting of R4 Prudent $ in Village Economic and Social AssociationsRisk Reserves participantsRisk Taking beyond households enrolled in the PSNP, increasing Risk Reserves (VESAs)Risk Transf ander RUSACCOs. Under the prudent the acces s to savings and credit for participants through risk taking component, R4 manages a revolving strengthening RuSACCOs with trainings and expansion of credit fund providing loans to farmers who want to guarantees, and conducting value chain assessments in target $ invest in their agr icultural activities through areas to be able to support livelihood and income generating Prudent RUSACCOs. First, participants become members activities for main commodities. The R4 project convened three Risk Taking Risk Reducon Risk Reducon Risk Transfer of RUSSACOs to access loans. Subsequently, workshops in the end of 2019 with relevant government and the local partners, REST and ORDA, provide R4community partners at the national and regional level to validate trainings to the participants before the the recommendations from the strategies and develop an $ RUSACCOs distribute the loan. Then participants$ implementation guidance document that will serve as a guiding repay the loan, which continues revolving in the frameworkPrudent for designing the field level activities for the project $ Risk Reserves Risk Taking village through further lending by RUSSACOs. during the 2020-2022 period and beyond. Risk Reserves Risk Transfer
4. FEWSNET. 2019. Ethiopia Food Security Outlook. http://fews.net/east-africa/ethiopia/food-security-outlook/june-2019. 5. FEWSNET. 2019. Ethiopia Food Security Outlook. http://fews.net/east-africa/ethiopia/food-security-outlook-update/august-2019.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 15 FIGURE 4. Ethiopia 2019 seasonal calendar
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Risk Reduction Component Risk Transfer Component A total of 24,189 farmers (43 perce nt women) participated in A total of 28, 692 farme rs (42 pe rcent wome n) we re insure d for the long-term risk reduction activities, with women investing 50 2019 agriculturalRa sein asony se forason both long and short cycle crops. Of percent less of their time in these activities than men. During these farmers, 24, 189 (43 perce nt wome n) paid 25 pe rce nt of the ir the year,2019 farmers rain faengagedll in building trench bunds on degraded premiums in cash and 2, 312 farmers (31 perce nt women) paid communal land, runoff flood diversion canals, hillside terraces, for the ir premiums fully in cash. More ove r, a total of 2, 191 have and seedlings cultivation. These activities aim to protect farmers acce sse d insurance through othe r donor funde d programmes.6 from runoff hazards, reduceJan erosionFeb of fertileMar farmlands,Apr improveMay Jun Jul Aug Sep Oct Nov Dec DRR acvies soil moisture and recharge ground water. Across the two regions, the total sum insured amounted Payoutto Insurance coverage US$2, 514, 317 and the total premium amounte d to US$392, 012. Micro-gardening for Female Headed Households (FHHs) is also Dry spells during the 2019 agricultural season triggered a total Savings and credits promoted as part of the risk reduction component to support payout of US$86, 983 for 6, 157 farmers. BL vegetablesM& productionE surveys for household consumption, which improves their nutritional status and income generation. In total, In 2019, WFP started activities to build the capacity of national 222 kg of vegetables seeds were distributed to 2,000 households and regional stakeholders in index design, thanks to funding from involved in micro-gardening. Moreover, 2,000 watering cans and IFAD. In this regard, WFP worked with its technical partner, the 4,176 different hand tools were distributed to these households. International Research Institute for Climate and Society (IRI), to Among the households involved in micro-gardening,Rainy season 820 develop Terms of Reference (ToR) for establishingRainy se theas onnational prepared a total of 1,640 compost pits used both for growing and regional index design team. With the support of IRI, WFP their vegetables2019 rain infa theirll backyard plots and for the upcoming conducted index design trainings and collected all field data rain-fed agriculture season. Composting is essential for rebuilding for expanding the index design in Amhara and Tigray to around soil nutrients and improving soil moisture retention, resulting in 300 additional villages. Moreover, WFP began consultation with increased productivity. Jan Feb Mar Apr May theJun two EthiopianJul localAug insuranceSep companies,Oct AfricaNov InsuranceDec
DRR acvies Company (AIC) and Oromia Insurance Company (OIC), to define
InMoresuranc over,e 110cove rainwaterage r harve sting syste ms (RWHs) were the steps and time line for handing over management of the installe d for 95 FHHs and for 15 male headed households with microinsurance component in the country from 2020 onwards. Savings and credits disabilitie s. RWHs help house holds e asily access wate r for micro-gardening,M&E survey reducings the workload for women and girls Thanks to fundingSDC MT fromR IFAD’s Adaptation for Smallholder in fetching water and improve households’ nutritional status. Agriculture Programme II (ASAP2), WFP piloted the Picture- In 2019, technical trainings on micro-gardens deve lopment and Based Index (PBI) for seasonal monitoring in partnership with improved soil fertility practices were delive re d to 2, 062 farme rs the International Food Policy Research Institute (IFPRI) and IRI to (94 percent women). Moreover, Trainings of Trainers (ToT) address basis risk challenges. The pilot studied the use of digital on Disaster Risk Manage me nt (DRM), Participatory Scenario repeat photography through smartphone cameras as a tool to Planning (PSP), and Climate Smart AgricultureRainy seas (CSA)on were also strengthen seasonal monitoring of crop healthRainy and seas damageon in conducte d. 2019 rainfall Ethiopia. This approach combines key advantages of both index- based insurance―timely compensation without expensive loss assessments―and indemnity insurance―minimum basis risk Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout 6. 2,016 farmers accessed insurance through the Development Food Security Activity (DFSA) programme, supported by USAID; 175 farmers accessed insurance Insuthroughrance the co Participatoryverage Small-Scale Irrigation Development Programme (PASIDP), supported by IFAD. Savings and credits BCM OM MTR BCM M&E surveys
16 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019
Long rains Short rains
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage
M&E surveys OM BCM
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage
Savings BL M&E surveys OM MTR and an easy to unde rstand product. The picture-base d monitoring • Farmer-reported damage is not always reflected by lower syste m was teste d to comple me nt the existing index-based yields me asured objectively using Crop Cutting Experiments insurance product, helping the project bette r unde rstand whethe r (CCEs).7 Additional data analyses will explore the potential the index has unde rperforme d, if the location is uninsurable or if reasons for these gaps. farme rs have too high expectations. Main conclusions and lessons • In this context, images can provide an important objective le arne d from the pilot are summarize d be low: source of data to track phenology and crop health in a • The level of damage reported on average by farmers remained transparent, tangible way. limited, with many farmers not reporting any damage, and • There is a clear need to monitor crops and have a system in if reporting it, damage remained often at moderate levels. place to address basis risk, and pictures can play an important The overall output of the season suggests that it was not role in this regard. Additional analyses are however required a catastrophic yea r in any of the locations, but some did to obtain better insights in the discrepancies between experience a bad season. different data, and how to make optimal use of the images as • Farmers who reported damage, however, attributed this an objective source of data that can help resolving the gaps damage to drought in only half of the cases; the remainder of between farmer reports, insurance indices and yield data. cases was due to pests and other perils.
INSURANCE PERFORMANCE INDICATORS * Growth Ratio: 2.1 percent decrease in the number of farmers insured from 2018 to 2019. ** Consumer Protection Investment Ratio: 15.3 percent. This ratio is acceptable and has slightly increased from the value registered in 2018 (13.6 percent). *** Utility Ratio: 96 percent. A well-designed insurance contract will usually have a utility ratio between 80 percent and 120 percent; therefore, the ratio is quite healthy.
Satellite Index Insurance for Pastoralists in Ethiopia (SIIPE) WFP began offering insurance to pastoralist in 2018 through the Satellite Index Insurance for Pastoralists in Ethiopia (SIIPE). In 2019, a total of 7,816 pastoralists have registered for the index-based livestock insurance in the Somali region of Ethiopia. Following dry spells during the 2019 season, 1,721 pastoralists received a total payout of US$97,508.
Risk Reserves and Prudent Risk Taking Components on gender mainstre aming and ge nde r and nutrition we re In 2019, 9, 150 farmers (40 percent women) participated in also carried out with project implementing staff and 404 VESAs, with a total capital held amounting to US$35, 021 stake holders to improve knowle dge and integration of gende r (ETB1, 128, 131). This year, farmers in 33 village s continue d conside rations. to benefit from the Revolving Loan Funds (RLFs) managed by RUSACCOs. The lessons learned from the se RLFs have also Outlook for 2020 and beyond informed how the project should move forward with the credit In 2020, R4 in Ethiopia is expecte d to scale up to 66, 000 component. This year, 19, 851 farme rs (38 pe rce nt women) house holds in Amhara and Tigray regions. The initiative is saved a total of US$757, 353 (ETB 24, 394, 345) in RUSACCOs. planning to reach ove r 180, 000 house holds and expand its Moreover, a total of 946 farme rs (7 pe rce nt wome n) acce sse d intervention to the Oromia region and to the Southern N ations, loans from RLFs totalling US$53, 033 (ETB1, 708,173) for N ationalitie s and People ’s Region (SN N RP) by 2021 as a result of different Income Ge nerating Activitie s (IGAs). the support received from KfW. Activities for 2020 will continue to focus on building the capacity of local stakeholde rs, with Capacity building activitie s we re conducted throughout WFP aiming to e nsure continuity on the insurance company the year with trainings and technical support provided to handove r and supporting capacity stre ngthe ning activities. committee members and staff to improve the ope rational More over, the initiative is planning to hire two Disaster Risk and manage rial capacity for bette r service delivery. Trainings Reduction officers and a livelihood office r.
7. Crop Cutting Experiments (CCE) refer to an assessment method to accurately estimate the yield of a crop or region during a given cultivation cycle.
* Growth Ratio: This indicator determines the increase in number of insured participants on an annual basis. ** Consumer Protection Investment Ratio: This indicator measures the amount of resources dedicated for consumer protection including-financial literacy, awareness, and communication. *** Utility Ratio: This ratio measures in which proportion the sum insured meets the utility requirement of the insured participant.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 17 In preparation for the Green Climate Fund project implementation, WFP conducted a baseline monitoring activity with the Senegalese farmers that will be receiving support for managing their climate risks.. WFP/Senegal Communications Team
R4 8,206 households (71, 392 pe rsons) Senegal 52 percent women 2019 Kolda and Tambacounda Regions ANCAR, ANACIM, CNAAS, Inclusive Guarantee, IRI, La Lumière, MAER, Orange, Oxfam America, P2RS, Since 2012 Université Gaston Berger
BMZ, French Cooperation
Key Achievements • 8,206 farmers (52 percent women) insured and 9,001 farmers (34 percent women) enrolled in FFA. • Sustainability: 533 farmers paid their premium fully in cash with total cash contributions amounting to US$6,688. • Cumulative value of savings: US$93,658.
18 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 R4 Programme in Senegal 2019 Agricultural season: Dry beginning and heavy In Senegal, R4 builds on WFP’s FFA and Oxfam America’s Saving rainfall in September for Change (SfC) programmes. The initiative was previously The 2019 rains in Senegal we re moderate , characterized by a linked to the IFAD-funded programme, Projet d’Appui au dry beginning and more intense rains in June, July, and August.8 Développement Agricole et à l’Entrepreneuriat Rural (PADAER), During the month of July, rainfall of variable inte nsity was an agricultural development initiative providing farmers with re corded across the country, with greate r accumulations in agricultural inputs as well as insurance through WFP. Tambacounda. August recorded rainfall of variable intensity across the country, with highe r intensity for the last two Risk Reduction component: By participating decades in the ce nte r and south of the country. $ in WFP’s FFA programme, farmers build assets
Prudent$ that decrease their vulne rability to climate The rainy season started on time in early June in the South- Risk Taking Risk Reducon shocks over time . TheRisk se Re ducoactivitien sRisk include Tr ansfer Eastern re gion and cumulative rainfall resulted in favourable Prudent Risk Taking Risk Reducon reforestation, preve ntionRisk Reduco of soiln R4 erosion,Risk Tr ansfer moisture conditions to support planting operations and crop composting and vegetable gardens. growth.9 Planting of the 2019 grain crops (maize , millet, and R4 $ sorghum) started timely in June in a few regions (South-East) of $ Farme rs access $ the country. However, Se negal expe rie nce d significant flooding $ Risk Transfer component: Prudent we ather index insuranceRisk byRe$serves investing theRisk Tair king in Se pte mber 2019, causing exte nsive damage in Rufisque and Risk Reserves Risk Transfer Prudent $ time in building assets.Risk As Re servestheir contributionRisk Taking to Gué diawaye de partme nt in Dakar Re gion and Kaolack region, Risk Reserves Risk Transfer the insurance premium, farmers have to work negative ly impacting live lihoods.10
$ eight days in building productive assets. When a drought hits, compe nsation for we ather- Prudent Risk Taking reRisk late Re dduco lossesn prevents farmers from sellingRisk Re ducon ProjectRisk Transf Statuser assets and stimulates faste r re cove ry. This year marked the seventh year of implementation of R4 in R4Senegal. In 2019, a total of 8,206 farmers (52 percent women)
Risk Reserves and Prudent Risk Taking were covered$ by insurance in Tambacounda and Kolda. components: Insurance policies are delive re$ d Prudent $ through SfC Associations, which supportRisk Reserves Risk Taking Risk Reserves participantsRisk Transfer in establishing small-scale savings, used to build ‘ risk re se rves’. Savings help build a stronger financial base for investing – but $ also act as a buffer against short-te rm nee ds Prudent and idiosyncratic shocks, such as illness and Risk Taking Risk Reducon Risk Reducon Risk Transfer death and could be used to pay insurance premiums in cash. Saving and microcredit R4 also e nable investment in live lihoods, $ increasing house hold production and income,$ gradually allowing them to access insurance Prudent $ Risk Reserves Risk Taking comme rcially and contributing to the gene ral Risk Reserves Risk Transfer sustainability of the initiative.
8. ANACIM (2019) http://www.anacim.sn/climat/index.php/bulletins_climatiques/. 9. GIEWS- Global Information and Early Warning System. (FAO, 2019). http://www.fao.org/giews/countrybrief/country.jsp?code=SEN&lang=es. 10. FEWSNET (2019) Global Weather Hazards Summary. http://fews.net/global/global-weather-hazards/october-18-2019.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 19
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
FIGURE 5. Senegal 2019 seasonal calendar
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BL M&E surveys
Risk Reduction Component In Tambacounda and Kolda, the total amount of cash that was In 2019, Food Assistance for Assets (FFA)Ra activitiesiny season under the risk distributed to participants as an ince ntiveRa toin yparticipate season in reduction compone nt we re unde rtake n and complete d by 9, 001 community asset cre ation activities amounted to US$475, 000. farme rs 2019(34 perce rain ntfa women)ll in both regions, represe nting a For the first time, the re sponse was digitalize d, through de crease of only 10 percent compared to last ye ar, but a significant ele ctronic cash-based transfer directly reaching farme rs. incre ase of 48 pe rcent compare d to 2017. Jan Feb Mar Apr May ThisJun year, theJul CountryAug OfficeSep strengtheOct ned itsNov effortsDec to increase Risk reductionDRR acv activitiesies were mainly focuse d on cre ating wome n’s participation in decision-making to ensure that
Incommunitysurance coandve householdrage productive assets, in addition women are re cognized as age nts of change and can actively to providing live lihood support, including improvement contribute to change management proce sse s. Women active ly Savings and credits of vegetation cove r through reforestation, building semi- participate d in food assistance de cision-making entities such permeableM& Estone survey bundss to prevent soil erosion, watershed as committeesSDC and MT Rboards. WFP also communicate d on manage me nt measure s to ave rt runoff, composting pits and gende r issues during community activities such as training and nutrition-se nsitive vegetable gardening. WFP continued to focus committee meetings and ensure d that local authoritie s allow on enhancing rain-fed rice production, providing se eds and bio- wome n to acquire land use rights. fe rtilize rs to improve rice yie lds. Risk Transfer Component During the ye ar, farmers e ngaged in risk reduction activitie s Rainy season As part of the risk transfe r component, a totalRain ofy 8,se 206ason farmers for both the dry and rainy season. Activitie s for the dry se ason (52 pe rcent women) were insure d for the 2019 agricultural include d:2019 creation rainfa ofll stone bunds use d to protect water ponds and season. Of the se farme rs, 533 paid the ir insurance premium fully lowlands from sand invasion and dispe l runoff, increase infiltration in cash with total cash contributions amounting to US$6, 688. The of rainwate r, reduce wate r erosion, and improve soil fertility; sand remaining 7, 673 farmers (52 pe rcent wome n) paid 24 pe rcent of removal, including cle aning andJan diggingFeb of pondsMar to increApr ase waterMay Jun Jul Aug Sep Oct Nov Dec their premium in cash. In total, cash contributions from farme rs resourceDR s Rfor ac livev stock;ies and building of small dams to e nsure water amounte d to US$32, 672. Payout Inrequiremesurance nts co forve racropsge and to increase acce ss to groundwater.
RainySavi ngse asons an dassets cred itcreations activities included: small dykes The numbe r of insured farme rs dropped by 11 perce nt compared BCM toOM 2018, with the de crease beingMT theR result of limite d timeBC toM work leve llingM& for waterE survey control;s distribution of rice se eds and fertilizers to increase rice yields; planting of Acacia me llifera tree s around garden on asset creation and distribute the product to all participants perimeters. These tre es are used as fe nces or windbreaks to protect (due to late budget confirmation), the end of the IFA D-funde d 11 crops against the wind, contributing to improve d crop yields. programme PADAER, and a reduction in the number of village s cove re d by WFP due to funding constraints. Rice farm ing was conducted on 382 ha, leading to a 69 percent increase compared to last year. Overall, the FFA activities have The 2019 agricultural campaign was gene rally satisfactory but was reduced exposure to climate-related shocks as well as soil marked by a late start which le d to insurance compe nsation in the degradation from agriculture, strengthening resilienceLong rains to drought first phase of US$21, 792 for 713 farmers in ShortKolda. rains and flooding, and contributing to long-term livelihood and environmental2019 ra benefits.infall Across both re gions, the total sum insure d for the 2019 agricultural season amounted to US$2, 056, 176, with a total pre mium amount of US$271, 625. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage 11. Projet d’Appui au Développement Agricole et à l’Entrepreneuriat Rural (PADAER) is an agriculturalOM developmentBCM initiative providing farmers with agriculturalM&E suinputsrvey ass well as insurance through WFP.
20 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage
Savings BL M&E surveys OM MTR INSURANCE PERFORMANCE INDICATORS • Growth Ratio: 11.2 percent decrease in the number of farmers insured from 2018 to 2019. • Consumer Protection Investment Ratio: 30 percent. The ratio is quite healthy, demonstrating that more than a quarter of insurance budget is dedicated to improving financial capacity and understanding of farmers. * Promptness of Claims Settlement: 65 days for the 2019 agricultural season. This timeframe is slightly over the ideal limit of two months from policy closure. • Utility Ratio: 179 percent. The ratio is above the ideal range (from 80 percent to 120 percent).
Risk Reserves and Prudent Risk Taking Components To adapt to the different shocks, households have put in place In 2019, WFP has continue d to support women in stre ngthe ning different coping strategies. Almost 40 percent of respondents the ir asset base and inve sting in the ir e conomic activities. Out of mentioned adopting coping strategies to meet food needs, 20 the 11, 646 farmers participating in 748 Saving for Change (SfC) percent link the strategies to cover education needs and more and Economic Interest Groups (EIG), 81 percent were wome n. than 26 percent used coping strategies to ensure health needs. The total amount of capital held by savings groups at the end of 2019 amounte d to US$143, 340 and the total savings amounte d to The most frequent shocks reported by households participating US$93, 658. More ove r, a total of 8, 788 farme rs (88 pe rcent wome n) in the survey indicate that over the last 12 months were illness we re able to access loans worth US$195, 247. This approach is highly or serious injury of a household me mber, followed by invasion successful as evide nce d by the 100 pe rcent re payme nt rate . of insects or pests, job loss, loss of crops or death of the main breadwinner. The regular monitoring system of the programme Beyond the SfC groups, the EIG groups —consisting of women will conduct a similar survey in 202 0 to understand the changes members derived from the SfC groups— allow women, through experienced by R4 participants to better orient the programme. community decision-making bodies, to refle ct on project ide as, Main findings will be presented in the next annual report. deve lop income-gene rating activities and carry out advocacy in favor of the communities on questions of financing, land, and other Outlook for 2020 and beyond topics. The funds generated are redistribute d among the members In 2020, the R4 programme will be marke d by the start of the scaling to increase activitie s and strengthen their income. Both groups are up phase thanks to funding from the Green Climate Fund (GCF), also effective social mobilization channe ls, which have e nabled them for a total of US$10 million for four years (2020-2023). Activities to negotiate bette r acce ss to land with the territorial authorities. unde r the GCF proje ct will include the creation of sustainable Particularly unde r this component, WFP has continuously made agricultural assets, ele ctronic cash transfers, access to we ather index efforts to e nsure that wome n smallholde r farmers have equal insurance, acce ss to climate service s and education, savings, ge nder acce ss to te chnical support and information on productive mainstreaming, guarante es and credit. The number of participants agricultural te chnique s, nutrition and rural entre pre neurship. is expecte d to scale-up to 12, 000 in 2020 and eve ntually reach 25, 000 in 2023. All activitie s will be guide d by a strong coordination Key programme findings and capacity building approach with government stakeholders at In Septem ber 201 9, a baseline was conducted in Kolda, national, re gional and municipal leve ls, including social prote ction Tambacounda, and Koumpetoum districts. The survey provided a actors, in orde r to facilitate gove rnment hand-ove r and pre pare an complete profile of R4 participants (in Kolda and Tambacounda) exit strategy for R4 in Senegal. and a control group (in Koumpetoum) that presented similar characteristics of livelihood and resilience capacities to serve as The design of project activitie s is base d on the achieve ments of the reference to analyse the effects of the programme. R4 pilot phase (2012-2017), confirme d by the impact evaluation conducted in 2016, but they are also adapte d to the continuation The baseline allowed the analysis of the food security status, phase (2018-2019) and the re sults of the R4 review workshop the socio-economic situation (livelihood, wealth, access to land, that took place in Tambacounda in Decembe r 2019. The approach productive assets and financial services, income sources, etc.), is base d on syste matic involve me nt of Vulnerability Analysis the shocks experienced recently (frequency and seasonality) and Mapping (VAM), Community-based Participatory Planning and the resilience capacity of households. The baseline shows a (CBP P) and Monitoring, Evaluation and Learning (MEL) activities. starting point were the food security situation of non-participants N ew in 2020 will be the integration of environmental and social is better than the future R4 participants showing that programme assessments integrating the new risk manageme nt standards. targeting was done effectively. Concerning R4 households, it was In addition to the expansion of R4, the comple mentarity with observed that male headed households present a better food othe r Country Strategic Plan (CSP) programmes, notably school consumption score than women headed households. Differences cante ens and nutrition activitie s, will be re inforce d. The focus on were also observe d between regions, with Kolda presenting the village cere al banks and financial inclusion will depend on a good lower proportion of food secure households compared with framing of the Smallholde r Agriculture Market Support (SAMS)12 Tambacounda and Koumpentoum that present a similar situation. approach togethe r with Supply Chain and othe r WFP programmes.
12. Smallholder Agricultural Market Support (SAMS) is WFP’s flagship program connecting smallholder farmers to markets. * Promptness of Claims Settlement: This indicator measures the efficiency of the claims’ settlement process, with the ideal limit being two months from policy closure.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 21 Female farmers participating in a sensitization activity in Mangochi, Malawi. WFP/Jyothi Bylappa
households (170, 510 persons) R4 37,891 Malawi 71 percent women 2019 Southern Region CUMO, DoDMA, DCCMS, Emmanuel International, Find your Fe et FISD, Hannover Re , Insurance Association of Malawi, IRI, MoA, MoFEP&D, Since 2015 N ICO Insurance, Plan International Malawi, Pula Advisors, UoR, UP, World Vision Malawi
SDC, USAID, BMZ, DFID, Flanders, Norway
Key Achievements • Scale up: The number of insured farmers increased from 36,969 in 2018 to 37,891 in 2019. • Expansion: The integrated risk management approach is currently active in six districts, with operations being rolled out this year to the new district of Phalombe, but being withdrawn from Nsanje district, owing to donor preference. • Sustainability: 4,171 farmers in Blantyre paid 14.33 percent of their premium in cash. • Cumulative value of savings: US$560,000.
22 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 The Integrated Risk Management approach in Malawi 2018/19 Agricultural season: Heavy rainfall led to As part of the Malawi Country Office’s integrate d re silie nce flooding in Southern Malawi building portfolio, WFP is offe ring a compre hensive set of The 2018/19 se ason was characterize d by he avy rainfall during integrated interve ntions that reduce and mitigate increasing the beginning of March, leading to flooding in southern and climate-related risks vulnerable households face and to he lp parts of central Malawi, which resulte d in infrastructure and the m achieve food security while e nhancing re silience at the crop damage , loss of livestock, collapse of house s, and cutting community level. Interventions include asset cre ation under off of roads as well as damage to cle an water sources. In WFP’s Food Assistance for Assets (FFA), the provision of Climate affected areas, some poor households expe rie nced significant Se rvice s (unde r the Global for Framework Climate Se rvice s), production losse s. agricultural insurance, savings and diversification of live lihoods, as we ll as market acce ss support unde r WFP’s Smallholde r Preliminary assessments estimate d that in southern areas Agricultural Market Support (SAMS). The se inte rventions are a total of 25, 000 to 35, 000 hectares of mature d crop were linke d with shock re sponsive social prote ction, e arly re covery, de stroye d, significantly decre asing production estimate s school feeding and nutrition programme s and are imple me nte d across the south.13 in an overall inte grated life-cycle approach. This is in line with WFP’s life-cycle approach to building resilie nce under its 2019-2023 In N sanje, Phalombe, Chikwawa, Mangochi and Zomba, Country Strategic Plan (CSP), focussing on 3 areas: outcomes are most likely to be stressed with many house holds 1) building human capital as a pre-requisite to resilience building; facing crisis based on the extent of crop de struction and 2) building physical capital to activities and effectively ensure loss of assets due to flooding. According to the Ministry of resilience at household levels; Agriculture’s (MoA) e stimate s, national maize production is 3) grounding these interventions in strengthening national expected to be 10 percent above the five -ye ar ave rage , with systems, processes, and policies. rice , sorghum, and millet also expecte d to be above average. However, despite above-average national production, below- The different components of the integrated risk management average maize grain supply is re porte d in most southe rn approach work as following: districts whe re flooding led to production deficits. 14 By participating Risk Reduction component: Project Status $ in WFP’s FFA programme, farmers build assets Malawi’s climate is highly variable, with frequent floods, such as soil and water conservation structures Prudent droughts, and climate-re late d disasters affe cting farme rs Risk Ta$king Risk Reducon in addition to applyingRisk conservation Reducon Riskagriculture Transfer particularly in the southern part of the country whe re WFP techniques. This helps them improve their Prudent R4 is imple menting its livelihood interve ntions. During 2019, Risk Taking Risk Reducon natural resource base forRisk Reimprovedducon resilienceRisk Transf er Malawi experience d floods and droughts affe cting a significant against climate-related risks. $ $ R4 numbe r of farming households. Weather-relate d eve nts such $ Prudent as cyclone Idai exace rbate d the vulnerability of farme rs, Risk Transfer component:Risk Re Byserves participatingRisk Ta$king Risk Reserves Risk Transfer in WFP’s FFA programme and$ investing their putting prospects for food security and re silient live lihoods Prudent at risk. The 2019 climate-related events in Malawi re ndere d $ time in building homesteadRisk Re servesassets to improveRisk Taking Risk Reserves Risk Transfer productivity, farmers access Weather Index over 1.9 million pe ople food inse cure , re quiring urgent nee d Insurance products in all the six districts and of support for the lean se ason (N ov 2019 – March 2020). Area Yield Index Insurance in three districts More over, highe r than average tempe rature s, the impact (Balaka, Zomba, Phalombe). A cash contribution of Fall Army Worms and rainfall variability were among the prominent risks facing farmers and significantly reduced $ to purchase an insurance policy was introduced in Balaka in 2018 and to Blantyre and Zomba in yield for both rainfed and winter cultivation. This led to e arly Prudent Risk Taking theRisk past Reduco year.n Smallholder farmers work Riskfor Re anduco n relianceRisk Transf toer markets, driving food price s rocket high. average of 14 days on this component. R4
Risk Reserves and Prudent Risk Taking $ component: Savings are promoted through $ Prudent $ Village Saving and Loans (VSL) groups. TheRisk se act Reserves Risk Taking Risk Reserves as aRisk buffer Transfer for smaller, more fre quent shocks and to fund inve stments in diversifie d and more resilient livelihoods. The uptake of credit is $ promote d through microfinance institutions to Prudent support farme rs in making large r inve stments in Risk Reducon Risk Reducon Risk Transfer Risk Taking the ir livelihoods, for prudent risk taking. R4
$ 13. FEWSNET. 2019. Heavy rains and flooding cause extensive crop and infrastructure$ damage in southern Malawi. https://fews.net/southern-africa/malawi/key-message-update/march-2019. Prudent $ Risk Reserves Risk Taking 14. FEWSNET. 2019. Crisis (IPC Phase 3) outcomes expected to emerge around October in southern areas. Risk Reserves Risk Transfer http://fews.net/southern-africa/malawi/food-security-outlook-update/august-2019.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 23
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BL M&E surveys
FIGURE 6. Malawi 2019 seasonal calendar
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies
Insurance coverage Savings and credits
M&E surveys SDC MTR
In March 2019, Malawi experienced heavy rains that were In 2019, the Malawi CO continued promoting the comprehensive associated with Cyclone Idai, with the Southern Part of Malawi integrated livelihood support package that includes FFA, being heavily affe cted. As a result, LevelRain yTwo se as(L2)on Emergency integrated risk management strategies likeRa microinsurance,iny season Response was activated, providing emergency food assistance savings and prudent risk taking activities, as well as market to 427,0002019 beneficiaries rainfall in the nine of the 15 flood affected access support, climate services and other behavioural change districts. Afterwards, an Early Recovery plan was developed activities that enhance good health and nutritional practices. In to provide support towards recovery for an estimated 48,000 2019, a total of 37,891 farmers were insured for the 2019/20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec households in six worst flood affected districts (Nsanje, season, with an overall increase of 3 percent compared to the DRR acvies Chikwawa, Phalombe, Zomba, Mangochi and Machinga) all of 2018/19 season. (For details on participantsPayout by activity please whichInsuranc beinge copartve raof geWFP Malawi’s resilience targeted districts. refer to Table 1). Savings and credits BCM OM MTR BCM M&E surveys TABLE 1. Resilience beneficiaries by activity
Malawi District FFA Insurance, VSL & Credit SAMS/P4P Climate Services
No. of participants Balaka 16,370 10,309 500 15,390 (HHs) Blantyre 13,721 4,171 12,790 Chikwawa 19,222 4,501 396 15,920 Machinga 18,138 500 - Mangochi L25,541ong rains 7,454 5,500 Short18,460 rains Nsanje 18,128 396 - 2019 rainfall Phalombe 14,259 8,256 344 - Zomba 29,056 3,200 541 22,830 TOTAL 154,435 37,891 8,177 85,39 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout 15 RiskInsu rancReductione cove Componentrage Resilie nce’ (PROSPER) in four districts, targeting 28, 000 By participating in WFP’s FFA programme , farme rs build farmers. Communitie s we re put at the ce ntre of the activities or maintainM& Eassets survey tos improve the ir live lihoods, work on through theOM imple meBC ntationM of Community Based Participatory community garde ns, fishponds, and refore station, creating Planning (CBPP) sessions to identify the appropriate FFA and healthier natural environme nts and improving their natural complementary activities, which will continue in 2020. CBPP re source base. These activities re duce risks and the impacts brings togethe r communities, partners and local gove rnment of climate -relate d shocks, incre asing food productivity, and to identify issue s and tailor programme re sponses to local strengthening re silie nce to climate-related disaste rs. WFP is also re quire me nt. In 2019, WFP was able to confirm 51 pe rce nt implementing watershed management activitie s (including dee p of its assets create d and maintained through its Asset Impact trenches, irrigation canals, soil bunds)Rain yunder seas onthe joint resilience Monitoring Syste m (AIMS), which use s satelliteRainy se imageryason to project ‘ Promoting Sustainable Partnerships for Empowe re d monitor assets. 2019 rainfall
15. PROSPER is a multi-stakeholder resilience programme supporting the Government of Malawi to reduce extreme poverty and end the recurrent cycle of crises and humanitarian assistance. Using an integrated, multi-layered and sequenced approach, PROSPER aims to reduce the impact of climate shocks, help households meet their immediateJan needs, Febwhile supportingMar longerApr term effortsMay to enhanceJun natural Julresource Augmanagement,Sep strengthenOct disaster NovpreparednessDec and responseDR Rmechanisms, acvies support linkages to safety nets, increase access to appropriate financial services and products, and create functional markets systems. With funding from the UKAID under the BRACC (Building Resilience and Adapting to Climate Change), the programme targets 1.1 million vulnerable people in the Insudistrictsranc eof Balaka,covera Chikwawa,ge Phalombe and Mangochi and implements the same activities as under R4, enabling the initiative to scale up its interventions.
Savings 24 BL R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 M&E surveys OM MTR Climate se rvice s activities we re also carried out and in It is hope d that the introduction of a multiple pe ril product 2019, WFP’s partners Farm Radio Trust and the Ministry of will stimulate more appetite for microinsurance products Agriculture, supported the co-production and disse mination and the refore make participant households more willing to of me ssage s via 534 community radio liste ning hubs, e nabling contribute in cash towards pre miums cost. In 2019, a total ove r 18, 000 households to directly acce ss weather and agro- of US$10, 047 (MK 7, 400, 220) was collected from farmers climatic advisorie s for enhanced farmer de cision making in Blantyre as the ir pre mium contributions for this se ason. on their live lihoods and climate smart agriculture options. Farmers in Balaka and Zomba were unable to contribute due to Se lected gove rnment officials have been trained in Participatory significant yield losses during the 2018/2019 season as a result Integrate d Climate Service s for Agriculture (PICSA) methodology of water logging, pe sts and diseases, which were not covered which aims to stre ngthe n governme nt’s agriculture exte nsion by the drought policy. services by inte racting with farme rs in a participatory manne r. Across all districts, the total sum insured amounted to Risk Transfer Component US$5, 871, 590 (MK 4, 324, 779, 504) for both Area Yie ld and In 2019, a total of 37, 891 farme rs (71 pe rce nt wome n) we re Weather Index insurance products, with a total premium of insured for the 2018/19 season in the six districts of Balaka, US$679,869 (MK 500,764, 446). Zomba, Blantyre , Chikwawa, Mangochi and Phalombe . Following recommendations from the Mid-Term Review of the R4 Southern During the year, WFP Malawi worked with the International Africa phase 2 programme commissioned by its donor, the Swiss Rese arch Institute for Climate and Society (IRI) to facilitate Age ncy for Developme nt and Coope ration (SDC),16 and a review index design trainings for the national pool of experts from of the pe rformance of the insurance product,17 the CO decided to both the public and private sector, to help sustain the expe rtise test a composite insurance product for the 2019/20 se ason. for index insurance in the country. The trainings brought together participants from N ICO, the Insurance Association, Specifically, the CO partnered with Pula Advisors, a risk modelling Malawi’s gove rnment departme nts including the De partment institution to provide an Area Yield Index Insurance product for of Climate Change and Meteorological Services (DCCMS), the 2019/20 season on a 50:50 pre mium basis with the Weather the De partme nt of Pove rty Reduction and Social Protection Index Insurance (WII) product in three districts for 21,765 (PRSP), under the Ministry of Finance, Economic Planning and farmers, which will provide coverage against dry spells but also Developme nt, the De partme nt of Disaster Management Affairs other risks contributing to yield loss (i.e. drought, pest and (DODMA), and the Ministry of Agriculture. diseases, hail, flood and storms). The introduction of a hybrid product responds to the needs of the farmers, who have been requesting a more comprehensive insurance cover that would consider multiple risks.
INSURANCE PERFORMANCE INDICATORS • Growth Ratio: 2.5 percent increase in the number of farmers insured from 2018 to 2019. • Consumer Protection Investment Ratio: 18 percent. This ratio is healthy, demonstrating that almost 20 percent of insurance budget is dedicated to improving financial capacity and understanding of farmers. • Utility Ratio: 103 percent. The ratio is quite healthy and within the acceptable range (from 80 percent to 120 percent).
Risk Reserves and Prudent Risk Taking Components approach for Village Savings and Lending groups (VSLs). In 2019, unde r the risk re serve s compone nt, a total of Multiple options for strengthe ning the linkage s and improving 37, 857 farmers (78 pe rce nt wome n) saved approximate ly the effective ness of the VSLs are be ing explore d and among US$560, 000. In alignment with Malawi CO’s live lihood othe r things, WFP Malawi will consider e stablishing a start-up imple me ntation strategy, the re is a plan to revisit partne rship revolving fund option, if appropriate , to stimulate meaningful arrangements and commit to a compre hensive multi-year savings and support graduation of the saving groups.
16. R4 Southern Africa phase 2 is funding the scale-up of the integrated risk management approach in Zambia, Malawi, and Zimbabwe. In Malawi, SDC funds interventions in the districts of Balaka and Zomba. 17. Low uptake of insurance was associated with the weather index insurance product not entirely meeting the population’s needs, as farmers suffered from weather induced shocks as well as non-weather induced shocks, including Fall Army Worms.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 25 Key programme findings management approach through the various interventions, In the aftermath of Cyclone Idai it was established that including FFA, insurance, Smallholder Agricultural Market farmers benefitting from a package of WFP Malawi’s livelihood Support, Climate Services, and VSL amongst others. WFP will interventions experienced lesser damage than those not part of continue working with partners, including Government Ministries the programme. This was mainly the case due to assets, including and Departments, Non-Governmental Organizations, the water harvesting structures/catchment conservation structures Academia and the private sector in order to effectively enhance done through WFP’s FFA programme. The after-action review and food security and partnerships. ongoing monitoring by WFP also reported that the neighboring non-targeted communities and villages have seen the benefit WFP Malawi will assess the performance of the Area Yield Index of the implementation of the risk reduction measures in flood Insurance (AYII) product te sted in thre e of the targeted districts protection and have started replicating without external support (Balaka, Zomba, and Phalombe) for the 2019/2020 season. the risk reduction measures. The pilot will help the CO draw its recomme ndations on the sustainability and benefits of both insurance mode ls, informing Midterm Reviews of the integrated risk a possible upscaling of the composite crop insurance product management approach to all the six districts. The CO will continue monitoring ongoing discussions betwee n Pula and the Government of Malawi In 2019, two independent Mid Term Reviews were on agriculture insurance and will pursue pote ntial areas of commissioned: one by the Swiss Agency for Development and collaboration and policy advocacy. WFP Malawi will continue to Cooperation (R4 Southern Africa phase 2 2017-2021) and one promote investment in non-traditional crops and food fortification by the Government of Flanders (IRMP 2017-2020 and Climate as part of a nutrition sensitive and risk manage ment approach. services) to assess the performance and sustainability of their The promotion of value chains togethe r with the introduction respective funded programmes in Malawi, while highlighting of de mand drive n financial services products would build long key lessons learned for the remainder of the programme and/or term sustainability of the insurance and other risk manage me nt subsequent phases. Main findings and lessons learned from both interventions, including the savings and cre dit compone nts. reviews are outlined below: WFP will focus on stre ngthening the capacity for VSL groups and • The integration of interventions like FFA, climate services, propose a standard model that conside rs different vulnerabilities insurance, and VSL at the household level provides a powerful of participants, with the CO exploring the revolving fund option to combination of knowledge and money that is available at stimulate savings activities. The re will be increase d focus on the the right time to allow smallholder farmers to plan ahead for VSL and Prudent Risk Taking compone nts for the upcoming se ason the forthcoming agricultural season and has led to increased to ensure farmers have acce ss to a complete integrated package . resilience to drought spells; Re comme ndations from the VSL and Cre dit assessment that • Insurance has potential to contribute to reducing a household’s WFP Malawi conducted with support from the Regional Bureau food gap in the event of a moderate to severe drought; Johannesburg (RBJ) will guide the CO to inform the deve lopme nt • Improved communication of the benefits of insurance of relevant capacity building and operational plans for 2020. to farming households is needed to enhance buy in for sustainability; In 2020, WFP Malawi plans to continue strengthe ning the integration • The insurance product was designed to cover only drought of the resilie nce package into other WFP activities including and is ineffe ctive in cove ring crop losses caused by floods live lihoods for refuge es, eme rgency through recove ry operations, or pe st. This point has already be en addressed with the school meals and nutrition. Other priorities include the incre ased introduction of a composite insurance product in three equitable engageme nt and e nhanced acce ss to food and resilie nce districts for the 2019/20 se ason; interve ntions for wome n and youth by e nhancing the ability of • VSLs are effecti ve in strengthening the capacities of households to produce enough food for longer pe riods, consume and smallholder farmers to invest and diversify their livelihoods; preserve perishable commoditie s at household level, including the • Climate services information provided through extension dive rsification of household income s and local value addition. officers and radio is effective, with farmers reportedly making As a technical advisor, WFP Malawi will also be supporting the changes to their farming practices as a result; government of Malawi with the impleme ntation of the Adaptation • Increased partner coordination and engagement is needed for Fund approve d project “Adapting to Climate Change Through improved implementation of the integrated approach; Inte grated Risk Manage ment Strate gies and Enhanced Market • Continued capacity strengthening and support of the various Opportunities for Resilient Food Se curity and Livelihoods”. This will be stakeholders is needed to ensure sustainable outcomes; a ste p towards national ownership of the inte grated risk manage ment • In Malawi, the Government has demonstrated strong approach and long-term sustainability of reducing hunge r through commitment to supporting the resilience building approach, enhance d partne rship in Malawi. but capacity still needs to be strengthened. Furthermore, a final evaluation workshop of SDC second phase Outlook for 2020 and beyond funding to R4 in Southern Africa will take place at the end of In 2020, the Malawi Country Office will continue to explore 2020. It will be the opportunity for Country Offices to present further re source opportunities through both traditional and non- and agree on strategic and programmatic directions in view of a traditional donors to sustain and upscale the integrated resilience potential third phase funding, starting in July 2021.
26 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Three of the 7,821 R4 farmers that received payouts this year pose for a photo during the insurance payout distribution in Zambia, dry spells during the 2018/19 agricultural season triggered a total of US$452,170 in payouts. WFP/Zambia Communications Team
R4 7,822 households (53, 965 pe rsons) Zambia 49 percent women 2019 Southern Region DAPP, DMMU, FAO, Hannover Re, Heifer Intl, IFAD, IRI, Mayfair insurance, MFinance, MoA, MTN, Pula Since 2015 Advisors, Vision Fund Zambia, Zanaco, ZMD
SDC, KOICA, Green Climate Fund, IFAD, SIDA
Key Achievements • WFP facilitated trainings and adoption of Conservation Agriculture (CA) among 18,035 farmers. • Total cumulative land size under Conservation Agriculture: 9,895 hectares. • Climate services: WFP and partners installed 165 rain gauges to help smallholders make informed farming decisions. • Sustainability: 7,822 farmers insured for the 2019/20 season. • Technology: Introduction of digital payment platform in partnership with MTN Zambia to process payouts amounting to US$452,170. • Capacity Building: Thanks to a partnership and funding received from IFAD, WFP was able to set-up a Technical Working Group to support national capacity building on index insurance product development and monitoring, as well as conduct a dry run on Area-Yield insurance (AYII) in one district, together with Pula Advisors. • Cumulative value of savings: US$96,215.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 27 R4 Programme in Zambia Access to markets In Zambia, R4 was built on FAO’s Conservation Agriculture R4 Zambia supports farmers’ access to markets by linking them Scaling-Up (CASU) project, whereby farmers access insurance by to the WFP Virtual Farmers Market (Maano), Farm to Market applying conservation agriculture (CA) techniques. The integrated Alliance (FtMA) and the Home-Grown School Feeding (HGSF) risk management approach is based on four components: programmes. Virtual Farmers’ Market (VFM) is an app-based e-commerce platform where farmers’ surplus and buyers’ Risk Reduction component: In Zambia, farmers demand for crops are advertised and traded. VFM provides $ apply CA te chnique s such as minimal soil a transparent, open and trustworthy space for smallholder
Prudent disturbance, permanent soil cover and crop farmers and buyers to negotiate fair prices and deals. The Risk Taking Risk Reducon rotations. Farmers also Riskreceive Reduco tailoredn Riskweathe Transf r er Farm to Market Alliance helps smallholder farmers receive the
$ and climate information services toR4 help them appropriate information, investment and support from seed better pre pare and cope with increasing climate to market in order for them to have the capacity to produce Prudent variability and adapt the ir decision-making and$ and sell marketable surplus for increased incomes. The HGSM Risk Taking Risk Reducon Risk Re$ducon Risk Transfer farming practice s. Prudent programme provides safe, diverse, and nutritious food, sourced $ Risk Reserves R4 Risk Taking locally from smallholders, to children in schools. Risk Reserves Risk Transfer $ Risk Transfer component: Farmers are insured$ by applying CA tec hniques $on at least 1 hectare 2018/19 Agricultural season: Rainfall shortages Prudent Prudent $ Risk Taking of Riskland. Reduco n Risk Reserves RiskRisk Ta Rekingducon significantlyRisk Transfer affected crop yields Risk Reserves Risk Transfer The 2018 /19 agricultural season in Zambia was characterized by R4 a late onset of the rains that resulted in reduced planted area in Risk Reserves and Prudent Risk Taking some of $the key maize growing areas, followed by long dry spells component: R4 in Zambia facilitates and $ that negatively affected crop development. Several districts in Prudent $ encourages savings schemes for householdsRisk Re serves southernRisk Ta kingZambia experienced their driest season since 1981.18 Risk Reserves andRisk communities Transfer through a Village Savings and Loans (VSL) model, which builds reserves Following impacts from drought, national maize production is to buffer against shocks and promotes expected to be below average for the second consecutive year. $ investment in income generating activities and The decre ase is mainly driven by significant rainfall deficits in Prudent the wellbeing of household members. Groups’ southern, western and central provinces. Outputs of millet, Risk Taking Risk Reducon Risk Reducon Risk Transfer activities run in cycles of one year, after which sorghum and rice are also estimated to have decreased to below- the accumulated savings and the loan profits R4average levels for similar weather-related factors.19 In addition to are distributed back to its members. Part of the direct impacts on farming, there are reports of dams running dry $ risk-taking activities include improved access$ and significantly decreased ground water levels with implications to credit facilities, in particular loans related to not onlyPrudent for crops, but also for livestock and water security. $ Risk Reserves Risk Taking support for CA activities. Improving access to Risk Reserves Risk Transfer credit allows households to borrow for much Project Status needed agricultural inputs and to develop other In Zambia, R4 is implemented in Pe mba, Monze, Namwala, on or off farm income generating activities. Mazabuka, and Gwembe districts. N o new insurance enrolments Financial education and trainings on credit are were undertaken for the 2019/20 season, with the number also provided and will support households to of insured farmers remaining at 7,822 (49 percent women). make prudent choices. This decision was in line with the SDC Mid-Term Review (MTR) recommendation to maintain the number of participants and focus on consolidating the achievem ents reached so far and supporting sustainability plans. Special attention will be given to participants that are moving towards graduation from the programme and are establishing business enterprises in order to support them with entrepreneurship and business skills development to improve viability of the local enterprises and sustainability of the programme achievements.
18. GEOGLAM Crop Monitor (2019). Southern Africa 2018/19 summer crops. https://cropmonitor.org/index.php/2019/04/18/special_update_southern_africa/. 19. GIEWS- Global Information and Early Warning System (2019) Country Brief: Zambia. http://www.fao.org/giews/countrybrief/country.jsp?code=ZMB.
28 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BL M&E surveys
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies
Insurance coverage Savings and credits
M&E surveys SDC MTR
FIGURE 7. Zambia 2018 seasonal calendar Rainy season Rainy season 2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BCM OM MTR BCM M&E surveys
Risk Reduction Component In 2019, in partnership with Pula Advisors, WFP pilote d an Are a In 2019, activities unde r the risk re duction component mainly Yie ld Index Insurance product (AYII) in some of the camps in focused on monitoring and promotion of Conservation the target area. The work conducted unde r the risk transfe r Long rains Short rains Agriculture (CA), training on improved agricultural practices, component has also bee n notice d by the Gove rnme nt of Zambia as access to2019 differe rain ntfa seell d varieties, early warning systems, good practice, with WFP signing a Memorandum of Unde rstanding and horticulture trainings. In 2019, a total of 18, 035 farme rs (MoU) with the Ministry of Agriculture (MoA) to provide technical (51 percent women) participate d in risk re duction activitie s. support on market and financial se rvices, including on the Farmer Approximate ly 78 percent ofJan the se Febfarmers applieMar d CAApr on theirMay InputJun SupportJul ProgrammeAug (FISP),Sep20 thatOct has introduceNov d micro-Dec land, withDRR an ac averagevies of 1.17 ha pe r farme r. insurance to around one million smallholde r farme rs. This te chnical Payout Insurance coverage assistance consists mainly in improving the MoA’s unde rstanding of Climate information se rvices are also provided as part of the risk the insurance product fe atures, stre ngthening local skills in product reductionM& componeE survey nt.s In 2019, WFP and partne rs installed 165 de sign, and improvingOM BC proceM sse s and the ove rall syste m. rain gauges to help smallholders make informe d decisions on what and whe n to plant. During the year, training on e arly warning During the 2018/19 season, in partnership with the International syste ms, the meteorology calendar and crop maturity calculation Re search Institute for Climate and Society (IRI), WFP refined were provide d to rain gauge minde rs. Sensitization me etings the index through introducing a zonal approach. This approach on climate service s were conducte d with farmers participating significantly improves the proce ss of explaining the insurance in Farmers’ Clubs to enhance utilization of climate information product and its price to farme rs, as the premium and payout rate s service s. In addition, capacity buildingRa trainingsiny seas onwe re provide d to are the same within a whole district, provideRa din therey seas ison enough farme rs to e nhance their knowle dge of agro-meteorological data homoge neity in terms of whe re and when shocks occur. Also, in and inte rpretation2019 rainfa onll how to use the information. orde r to avoid missing payouts during important drought ye ars be cause of a few dekads,21 IRI propose d an overlapping window Risk Transfer Component cove ring diffe re nt dekadal combinations, allowing coverage of the In 2019, activities under theJan risk transferFeb componentMar Aprfocused Mayon wholeJun growingJul seasonAug and no Seplonge r missingOct anyNov key dry spellDec sensitizingDRR farmersacvi eson index insurance, capacity building, and during an uncove re d window. insuranceInsurance premium covera gecontributions. In total, 7,822 farmers (49 percent women) were insured for the 2019/20 season. No new insurance enrolmentsSavings were undertaken this year, in line with the recommendation made by the SDC commissionedBL Mid-Term Review toM& maintainE survey thes same number of participants,OM with the MTR strategy being to focus on consolidating the gains obtained so far and supporting sustainability plans. This year, the total sum insured amounted to US$466,962, with a total premium amount of US$90,282.
20. FISP is a government agriculture input subsidy programme for smallholder farmers. 21. A Dekad is a period of 10 consecutive days, commonly used in the study of meteorological elements.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 29 INSURANCE PERFORMANCE INDICATORS • Growth Ratio: 0 percent increase in the number of farmers insured from 2018 to 2019. No new insurance enrolments were undertaken this year, in line with the recommendation made by the Mid-Term Review commissioned by SDC. • Consumer Protection Investment Ratio: 48 percent demonstrates that nearly half of insurance budget is dedicated to improving financial capacity and understanding of farmers. • Promptness of Claims Settlement: 167 days after the insurance coverage closure for the 2018/19 season. This timeframe is well over the ideal limit of two months from policy closure and needs to be improved in upcoming seasons. • Utility Ratio: 69 percent. The ratio is slightly below the acceptable range (from 80 percent to 120 percent).
Dry spells during the 2018/19 season triggered payouts totalling Access to markets US$452,170 to 7,821 farmers. Insurance payouts were distributed Building on the achievements from 2018, two additional rural using a mobile money payment platform in partnership with aggregation centers were established in Pemba and Mazabuka the mobile network operator MTN Zambia. To assess farmers’ districts in the first half of 2019, potentially creating increased access, use, and satisfaction with the insurance payout, a survey access to markets to an additional 4,000 smallholder farmers. was undertaken in all the five districts. The insurance product The establishment of the aggregation centers brought markets triggered a payout ranging from US$42 to US$53. Households closer to the last mile smallholder farmers. WFP also engaged mainly used the payout to purchase agricultural and livestock 106 farm ers to play the role of micro-aggregators, in order to inputs, pay for education and invest in Income Generating provide market linkages to smallholder farmers. Furthermore, 50 Activities (IGAs). The decision on how to use the payout was intermediary aggregators were linked to eight food processors primarily made jointly by both male and female adults in the (off-takers). household and the majority indicated it was the right decision for the family. The level of satisfaction with the insurance payout was Key programme findings very high, with 88 percent of households declaring being satisfied Main findings from the regular monitoring system and the or very satisfied with the amount received, with the withdrawal qualitative surveys conducted by the Mid-Term Review method, and time liness of the payout received. Going forward, commissioned by SDC show that: most of the households (98 percent) indicated willingness to enroll for insurance again and most indicated willingness to pay • The programme has engaged government at national and a cash contribution for insurance premium in the future. The two district level, leading to progress in the adoption of specific major challenges reported by the households were difficulties in R4 components. The most representative result of this using the technology and the long waiting time. The programme engagement is reflected by the government’s inclusion of will address this issue by enhancing farmers’ knowledge on the R4’s insurance model into the Zambia’s Farmer Input Support use of mobile money technology. Programme (FISP); • Case studies conducted by the MTR show that R4 has Risk Reserves and Prudent Risk Taking Components contributed to increase farmers resilience to drought. This In 2019, activities under the savings and credit components is confirmed by the monitoring system as the initial R4 focused trainings on financial literacy and credit for Farmers participants have gradually increased their wealth, reduced Club members, in addition to refresher trainings on the savings the use of negative coping strategies and improved their food for change (SfC) model. This year, a total of 6,369 farmers (69 security status ove r time. percent women) participated in 298 supervised22 saving groups, • The initiative’s insurance component performs better than with a total savings amount of US$96,215 and an average saving other insurance models especially in Zambia. Most of the amount per farmer of US$17.50. A total of 321 farmers accessed households in the project camps are willing to pay for future loans from the saving groups amounting to US$6,364 (ZMW weather index insurance premiums. This indicates high levels 89,103). Trainings on financial education and record keeping of acceptance and ownership by the target beneficiaries and were also conducted throughout the year. most importantly, it demonstrates that the project is on track to ensure smooth transition and exit as the beneficiaries will N ew partnerships were formed this ye ar with new financial continue to enjoy the insurance services. service provide rs, including MTN , ZAN ACO, and MFinance, to offe r • Farmers consider that VSLs are contributing to the innovative savings and credit-linke d products, tailored to provide strengthening of social capital and enhancing their financial cre dit to savings groups. Additionally, in an effort to digitize the inclusion. transactions within savings groups and avoid farme rs handing large sums of money, savings wallets (mobile based banking), were introduced by the partne rs MFinance and Vision Fund Zambia.
22. Supervised saving groups are groups that are still being guided and supported by WFP project staff or NGO partners with management of the groups’ activities.
30 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Recommendations based on the findings: As part of the sustainability and transition strategy of R4 operations, WFP Zambia aligned its R4 operations with the • WFP Zambia should e stablish and impleme nt a le arning framework , Government’s 7th National Development Plan (NDP-7) to aimed at capturing and communicating outcome s that will be use d increase government ownership and improve their technical to deve lop a business case for R4’s inte grated approach; oversight through its Smallholder Support Programme. Through • The Zambia CO should revise the targets downwards to ensure this programme, WFP Zambia supports government systems no new enrolments are undertaken while the focus is shifted and structures to improve smallholder farmer’s access to towards consolidating the gains and supporting sustainability markets, enhancing their resilience to climate-related shocks plans. (This recommendation has already been partially and diversifying their livelihoods. In 2019, WFP Zambia signed a addressed, with no new enrolments undertaken this season. MoU with the MoA to provide technical support to strengthen Activities supporting sustainability are currently ongoing). local skills in product design and improving the insurance system. • R4 participants still experience post-harvest losses even though Activities for 2020 will include capacity building in weather index the numbers have significantly reduced compared to the design, performance assessment of the different microinsurance baseline. WFP has been supporting farmers to adopt modern indexes (WII and AYII), improvement of the insurance system and methods of post-harvest storage and handling which are more coordination between the different existing schemes. Moreover, effective in addressing post-harvest losses. These methods in order to stream line existing insurance products, a Technical include the use of PICS23 grain bags and plastic silos. WFP Working Group was formed to support national capacity building should therefore continue sensitizing target beneficiaries on on index insurance product development and monitoring. the use of modern storage facilities. For 2020 , WFP will continue to provide technical assistance to the Technical Working Group on index insurance design, costing, Outlook for 2020 and beyond implementation and monitoring. Furthermore, WFP will continue Plans for 2020 and beyond include the continue d roll out of working with the Zambia Meteorological Department to support activities relate d to the different compone nts, with a focus on the Government in developing early warning system technologies evidence generation, advocacy and support for policy reform, to improve agricultural production and productivity among e nhance ment of national systems in orde r to facilitate scale smallholder farmers. up of sustainable assistance , and capacity stre ngthening at the institutional and individual levels. Moreover, WFP Zambia will also take part in the final evaluation workshop of SDC second phase funding to R4 in Southern Africa, to be held at the e nd of 2020.
23. Purdue Improved Crop Storage (PICS) bags provide a simple, low-cost method of reducing post-harvest losses.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 31 Farmers participate in a sensitization activity to increase their knowledge and interest in insurance before the insurance sign ups in Kenya. WFP/Alfred Karisa
R4 8,862 households (59, 375 pe rsons) Kenya 85 percent women 2019 Kitui County MoALF&I, NDMA, County Government of Kitui, Kenya Agriculture and Livestock Insurance Pool, Since 2017 Catholic Diocese of Kitui, Pula Advisors
Global Affairs Canada, USAID, IFAD
Key Achievements • 8,862 farmers (85 percent women) insured for the 2019 Short Rains season. • Cash contribution: Introduced farmers’ cash contributions representing five percent of premiums through mobile money platforms. • Insurance payout: 5,612 farmers compensated for drought-related crop losses during the 2018 Short Rains season. • The R4 learning event contributed to sharing lessons learned and future perspectives on crop insurance in Kenya amongst government, private sector and civil society stakeholders.
32 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 R4 Programme in Kenya 2018/19 Agricultural season: Rainfall deficits during In Kenya, the initiative is implemented through the collaboration the 201 9 Long Rains season and heavy rainfall of WFP with the Ministry of Agriculture, Livestock, Fisheries, during the 2019 Short Rains season and Irrigation (MoALF&I), the National Drought Management In Kenya, seasonal rains in March and April were generally very Authority (NDMA), County Government of Kitui, Catholic Diocese poor, with most rainfall deficits recorded in south-eastern and of Kitui, and private sector partners. The integrated climate risk coastal agriculture livelihood zones. Severe early season dryness management approach is based on two components: caused substantial planting delays, affecting crop germination and vegetation conditions. Risk Reduction component: Farmers receive $ technical assistance from extension services Despite improved rains between mid-April and late May, severe and field partners on improved agricultural drought was still affecting between 20 and 45 percent of the Prudent 24 Risk Ta$king Risk Reducon practices, including soilRisk and Reduco watern conservationRisk Transfer cropland in late May. techniques. These activities contribute to Prudent R4 Risk Taking Risk Reducon promote resilience by steadilyRisk Reduco reducingn Risk farmers’ Transfer From October to December, Kenya experienced one of the vulnerability to shocks over time. $ wettest Short Rains seasons on record, with rainfall totals ranging $ R4 Prudent up to 400 percent of average. Disruptions to critical transport $ Risk Taking Risk Transfer component:Risk Re Byserves growing drought$ infrastructure and ongoing delays in the unimodal harvest have Risk Reserves Risk Transfer resistant crops and adopting$ recommended reduced the availability of food in markets, resulting in high food Prudent $ agricultural practices, farmersRisk Reserves can accessRisk Taking prices. Crop and livestock losses have been reported in localized Risk Reserves Risk Transfer Area Yield Index Insurance (AYII). AYII can areas.25 In comparison to the five-year average, maize prices offer coverage against several risks including ranged from 14 to 41 percent above average and bean prices pests and uses crop sampling at the end of ranged from 9 to 25 percent above average. the season to determine the amount of value lost. The conditionality for farmers to receive In marginal agricultural areas, above-average rainfall has led to an insurance policy requires farmers to grow mixed effects on Short Rains crop production. In many areas, at least one drought resistant crop, including area planted is above normal and cropping conditions remain green grams, sorghum, millet and cow peas in favourable. However, excess soil moisture and flooding in some one acre of land. When a major shock affecting coastal and South Eastern areas is expected to result in below- the community hits, compensation for losses average, short-cycle legumes production and localized maize prevents farmers from selling productive assets losses. and stimulates faster recovery.
Project Status The R4 programme in Kenya entered its fourth season in October 2019. Over the past three years, the programme scaled-up its operations from 1,000 to about 10,000 insured farmers, with a total sum insured from the four seasons of approximate ly US$3 million and crop loss compensation amounting to US$766,000 (Figure 10). Its geographical coverage has also expanded from one to four sub-counties, ensuring crop protection and income security for vulnerable smallholder farmers in the Eastern region of Kenya. In the 2019 Short Rains season, the programme has successfully registered 8,862 farmers (85 percent women) with an Area Yield Index Insurance coverage between November 2019 and February 202 0.
24. FAO. (2019) GIEWS- Global Information and Early Warning System. Country Brief: Kenya. http://www.fao.org/giews/countrybrief/country.jsp?code=KEN. 25. FEWSNET (2019) Crisis (IPC Phase 3) to persist in the short-term due to prior drought and current heavy rainfall https://fews.net/east-africa/kenya.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 33 FIGURE 8. R4 Progress in Kenya, Kitui county (2017-2019)
1.2000,000 10000 9000 1.000,000 8000 800,000 7000 6000 600,000 5000 4000 400,000 3000 200,000 2000 1000 0 0 2017 Long Rains 2017 Short Rains 2018 Short Rains 2019 Short Rains
Total sum insured (US$) Total Premium (US$) Payouts (US$) Number of farmers
Complementary to field operations in Kitui county, WFP Kenya represented 44 percent of the sum insured, totalling US$122,719 has active ly pursued opportunities to share knowledge acquired (KSh 12,271,886) for the 2,310 farmers insured; in Mwingi with partners at the national level. An R4 learning event took North, a total of US$5,605 (KSh 560 ,462) was disbursed to 3,302 place in June 2019 , providing for reflections on the R4 journey farmers. In the two sub-counties of Kitui Rural and Kitui East, and recommendations for future interventions. With support payouts were not triggered as yield levels were over 0.61 bags. from IFAD’s Adaptation for Smallholder Agriculture Programme Payout sensitization meetings were carried out from 27th May II (ASAP 2), a hybrid index insurance product has been designed to 14th June 201 9, where farmers discussed the results of the for expansion into two additional counties in the semi-arid season and provided feedback on programme design. Challenges region and a feasibility assessment was carried out to inform the faced in the 2018 season included high basis risk embedded in coordination between national drought contingency funds and the product, which influenced farm ers’ perception in certain microinsurance. areas due to low insurance compensation vis-à-vis experienced crop losses. Lessons from this season informed important R4 is one of the few index insurance models teste d in the se mi-arid programmatic changes in the design of the 2019 Short Rains counties of Ke nya. The approach enables the poorest farme rs to insurance coverage. manage climate risk through crop insurance that smallholde rs can acce ss by participating in risk re duction activities. Support to national crop insurance de bate A national ‘Dialogue on Climate Risk Manageme nt in Ke nya: The R4 programme in Kenya is implemented in the semi-arid Supporting Vulne rable and Food Inse cure House holds through an county of Kitui, which integrates the South-eastern Marginal Are a Yie ld Index Insurance in K itui’ was he ld in June, gathe ring Agricultural Livelihood Cluster. The cluster is mainly dependent approximately 60 re presentatives from gove rnme nt, civil society, on the Short Rains season (from October to December) for crop private se ctor and developme nt partne rs. The event provided an production. The short rains account for about 70 percent of opportunity to discuss the role of risk transfer tools in protecting annual production of the main crops i.e. maize, green grams, smallholder farmers against climatic shocks. The area yie ld cowpeas, sorghum and millet in this area. index insurance for smallholder farme rs in K itui is a relevant and effe ctive tool providing this protection against climatic shocks Risk Reduction Component as well as promoting inve stme nt and incre asing productivity. This year, a total of 8,862 farmers engaged in community Particularly strong re sults are see n in re ducing debt, improving mobilization and sensitization activities on improved agricultural school attendance and supporting livelihoods diversification. practices, as well as timely planting and replanting of green The re is also significant scope for expansion, ensuring that grams, cow peas, millet and sorghum, in preparation for the 2019 more smallholders have acce ss to appropriate and affordable Short Rains season and tracking of crop development. microinsurance products. While subsidized models are re quired in orde r to ensure that all stake holders (smallholde rs, authoritie s and Risk Transfer Component private se ctor) can participate and le arn in new are as and markets, Compe nsation of 2018 Short Rains se ason there are pote ntial pathways to incre ase consume r contributions In the first and second quarter of 2019, partners completed yield and comme rcial mode ls as the expe rience and resilie nce of measurement for the four targeted project areas, which qualified smallholders increase . Meanwhile, WFP will continue to document 5,612 smallholders for an insurance payout due to reduced le ssons from subsidized mode ls for vulnerable farme rs and how it yields from drought. A total of US$128,323 (KSh 12,832,348) influe nce s be haviour i.e. towards more drought tolerant crops and were disbursed in two sub-counties: in Kitui South, the payout uptake of new technologies.
34 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits In Ke nya, microinsurance is also one compone nt within a production and marketing capacitie s. As KCEP-CRAWL introduces BL larger nationalM&E su climaterveys and disaster risk financing strategy and its insurance coverage in 2020 Short Rains in these counties, WFP framework, that also include s sove re ign insurance and loans, has be en collaborating with KCEP-CRALW stake holders on the continge ncy funds and programmatic risk financing. Increase d de sign of an area yield insurance product base d on its experience coordination and laye ring betwe en the se instruments can enhance with R4. The two programmes also have an opportunity to inve st their cumulative efficie ncy in prote cting against the economic in smallholder’s education on insurance and financial se rvices Rainy season Rainy season losses and humanitarian re sponse expe nditure s arising from give n common geographical targeting, thus e nsuring that farme rs repe ate d climatic shocks. An inte gration of financial instrume nts have acce ss to information and service s appropriate for protecting 2019 rainfall generally increases the effe ctive ness of disaster risk management their livelihoods and adapting to climate -relate d impacts. at national, sub-national and community leve ls. With support from IFAD’s ASAP 2 programmeJan , WFP Feband Pula MarAdvisors carrieApr d May Re gistrationJun Julfor 2019 AugShort RainsSep Oct Nov Dec out a feasibilityDRR ac vassei ssmees nt to inform the design of a risk layering Betwee n Se ptembe r and Octobe r, WFP and Caritas K itui carrie d mechanism between the N ational Drought Emergency Fund out farmers’ sensitization and e lectronic re gistration for the andInsu microinsurancerance covera . geThe N DEF allows disburse ment of funds to 2019 Short Rains. This se ason has introduce d SCOPE re gistration supportSaving implementations and credits of pre pare dne ss and response activitie s of R4 farmers, which aligns with WFP’s be neficiary monitoring aimed at mitigating the worst impacts of droughts in Kenya’s Arid syste m and facilitate d colle ction of house hold data to support SDC MTR and Semi-AridM&E suLandsrvey (ASALs).s Through a layering approach with the social prote ction syste m (i.e . single re gistry) in Ke nya. For the one common method of me asuring a trigge r - an index insurance 2019/2020 se ason, WFP has insure d 8, 862 farmers (85 percent product - a win-win situation can be created. While insurance women wome n) for a total sum insured of U S$1, 037, 604 (KSh can cove r the catastrophic risks and become more affordable and 110, 556, 706). WFP paid 50 pe rce nt of pre miums while the attractive , the continge ncy can absorb the more frequent smaller Ministry of Agriculture is expected to provide a 50 pe rcent subsidy. shocks to farme rs and will now be able to provide a solution for Farme rs’ cash contributions we re introduce d in the current Rainy season Rainy season the infre quent catastrophic eve nts. Discussions will continue in season totalling US$8, 862 (KSh 886,200). As of De ce mber 2019, 2020 on operationalization2019 rainfall of this conce pt in partne rship with the rainfall in the county was above average and crops ge ne rally Gove rnme nt. pe rformed well de spite isolated dry spells and pe st and dise ase e pisode s. Of particular concern is the threat posed by the dese rt By leveraging partnerships in Janthe semi-aridFeb areas,Mar WFP isApr May locustsJun invasion,Jul with theAug situationSep on theOct groundNov worseningDec as DRR acvies widespread swarm bree ding continues in N orthern and Central maximizing the impact of its programme s and e nsuring coherence Payout withInsu prioritiesrance co setve raatge the national leve l on climate risk finance . countie s leading to an increase in the number of hopper bands. Unde r the Rome-Base d Age ncie s (RBAs) partnership, WFP has This upsurge could cause be low-average 2020 harvests and beSa envi supportingngs and cr edtheit inclusions of graduated asset cre ation farmers major pasture losses in arid and semi-arid re gions. In January and BCM OM MTR BCM to the KeM& nya ECereal survey Enhances Programme – Climate Resilie nt February 2020, WFP and partne rs will continue to monitor crop Agricultural Livelihoods Window (KCEP-CRALW), which offe rs he alth up to the harvesting time , when crop cuts will inform the an inte grate d risk reduction package to farmers with higher payout analysis for the 2019 Short Rains.
FIGURE 9. Kenya 2019 seasonal calendar
Long rains Short rains
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage
M&E surveys OM BCM
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 35 DRR acvies Insurance coverage
Savings BL M&E surveys OM MTR INSURANCE PERFORMANCE INDICATORS • Growth Ratio: 6.6 percent decrease in the number of insured farmers from the 2018 Short Rains season to the 2019 Short Rains season. • Consumer Protection Investment Ratio: 29 percent indicates that more than a quarter of insurance budget is dedicated to improving financial capacity and understanding of farmers. • Promptness of Claims Settlement: 85 days for the 2018 Short Rains season. This timeframe is above the optimal limit of two months from policy closure and needs to be improved in upcoming seasons. • Utility Ratio: 80 percent. The ratio is acceptable and within the ideal range (from 80 percent to 120 percent).
Key programme findings • The outcome monitoring survey, conducte d annually, showed • In 2019, the se cond ye ar of the programme , after computation that in contrast with the positive results achieve d by the of the ave rage yie ld pe r sub-county, the insurance trigge re d programme in 2018 - following the withdrawal of two important a payout in Mwingi N orth and Kitui South and no payout insurance payouts- in 2019, despite a bette r harvest, WFP was triggered in K itui rural and K itui East as the average yie ld observe d a dete rioration of the food security and socio- was highe r than the historical be nchmark. Payout in K itui e conomic indicators monitore d for the R4 participants, that South re presente d 44 percent of the sum insure d providing are curre ntly in a similar situation to the house holds in the US$52.5 (KSh 5, 312) pe r farme r while in Mwingi N orth it only control group, not having re ce ive d any support in the period. represe nte d 1 pe rce nt of the sum insured totalling US$1.65 This condition is the re sult of several shocks not cove red by (KSh 168) pe r farmer disburse d during the month of June . The the programme , mainly aggravated by the cumulative effe ct of obse rve d variability of payout leve ls was directly relate d to the two failed se asons on yie ld levels and household food stocks, Unit Are a of Insurance , adopted by the programme, whe re yield market price spikes as we ll as a reduction of external assistance data was aggregate d at sub-county leve l and use d to define and the meagre effect of a reduced insurance payout. This payout thre sholds for all farmers within a given sub-county. This finding ne eds to be take n into conside ration in the future, for model showed a high level of basis risk, particularly in Mwingi any interve ntion that includes a risk transfe r ele me nt. While the N orth, where the re are significant agroe cological variations insurance compone nt can make the diffe re nce in re sponse to a across the thre e targeted wards in the sub-county. crisis (supporting food acce ss or te mporarily incre asing savings as se en with the positive re sults of 2018), the changes promote d To asse ss farmers’ acce ss, use, and satisfaction with the are not long-lasting if the interve ntion is not e mbedde d into insurance payout, a survey was unde rtake n in the different a wide r inte grate d risk manage ment approach that promote s sub-counties covering both farme rs receiving a payout and the an improveme nt of the adaptive capacity of house holds and ones not re ce iving it. Overall, the re sults reve aled a continuous live lihoods. high interest in joining R4 in future seasons, with 98 pe rce nt of responde nts de claring they would enrol in the insurance Lessons learned and way forward programme again, with 94 pe rce nt willing to pay a portion in Lessons from Kitui programme resulted in important design cash in the future . However, the survey reve ale d a ne ed to changes, which were introduced this season to improve efficiency significantly invest in farmers’ unde rstanding of insurance and and to respond to farmers’ suggestions collected during WFP’s the me aning of payouts, with particular focus on incre asing the monitoring activities. The product has shifted its unit area of effe ctive ness of information sharing on payout entitlement. insurance to agroecological zones as compared to previous administrative boundaries, which is expected to reduce the For farmers who we re entitled to a payout, the insurance basis risk and provide for fairer compensation. In partnership compe nsation was mostly used to purchase food and pay with Pula, satellite technology should also support in monitoring school fees. Participants sugge sted incre asing the payout performance and complement Crop Cutting Experiments. amount in future seasons as the main ele me nt to improve the Moreover, for the first time, farmers have contributed the programme. Ove rall, both re spondents rece iving or not re ce iving equivalent to 5 percent of the premiums. The programme aims at a payout identified the ne ed to improve communication on the gradually increasing farmer’s co-share while strengthening their programme and on the payout disburse ment process, improve savings capacity through Village Savings and Loans Associations accountability by providing re gular fe edback, and reque sted (VSLAs) in 2020. Besides ensuring long-term sustainability, to include additional training module s on crop production and supporting farmers’ financial capacities has an educational effect provide see d support to re start production. on how insurance works as well as on introducing savings and investment principles, which can inform diversification of their income sources.
36 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Farmers have also requested a review of distribution productive enterprises. The main findings of this stocktaking mechanisms from bank accounts to mobile money channels, exercise will inform the introduction of a VSLA component espe cially whe n the payout amount is very small. As a result, in the R4 project in Kitui, as well as the design of a Gender R4 has aligned its distribution through Safaricom Mpesa. During Active Learning System (GALS) methodology, a community-led the re gistration phase, farmers received instructions on how inclusive approach to empower me n and women, which will to transfe r their share s, which in turn we re verified by the strengthen the R4 implementation strategy and introduce more insurance company through a special account. Moving forward, transformative gender approaches in the programme. WFP and partners will continue to review and test distribution mechanisms to e nsure timely and reliable disbursement of payouts. Outlook for 2020 and beyond The positive changes brought by R4 in Kenya are also informing In the R4 programme in Kenya, around 85 percent of insured its scale-up to an additional county in the semi-arid region, smallholders are women. Yet, gender inequalities affect their where a hybrid product will be tested in 2020. Furthermore, asset endowment and control over resources in the household, WFP is investing in increasing the number of insured farmers which in turn can undermine their food security and negatively to attract the inte rest of private insurance companies to offer impact their adaptative capacities. To inform the scale-up of the more affordable products to vulnerable and food insecure R4 programme in the next year, a gender and financial inclusion smallholders. With support from IFAD’s ASAP II programme, a dry rapid assessment was carried out in December 2019. The analysis run26 has started in two additional districts for testing a hybrid aimed at understanding how the R4 implementation strategy can insurance product. The purpose of the hybrid is to allow an early promote women’s empowerment through economic inclusion payout with the Weather Index Insurance (WII) and make sure and protection against risks, but also minimize unintended no key shock is missed with the AYII. Results of the dry run will negative effects on gender dynamics at household and inform operations in 2020. community levels. Unequal gender relations at the household level were observed, with women contributing to 90 percent R4 Ke nya is part of a multi-stakeholder partnership with of household work, farming and income generation activities, MoALF&I, County Governme nt of Kitui, P ula Advisors, Caritas exacerbated by men’s migration in search for casual labour. Kitui and Ke nya National Agriculture and Live stock Insurance Although women seem to have some agency at community Pool for the monitoring and implementation of the R4 level, their decision-making power is limited at the household programme. The ge nerous contributions from Global Affairs level. We ak organizational capacity of women groups is also Canada and USAID e nsure the continuation and scale -up of the undermining their capacities to maximize savings and invest in R4 Initiative in Ke nya.
26. An insurance dry run refers to testing a prototype insurance product and monitoring its performance for one season before the product is introduced into the market.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 37 Weather index insurance product testing at Makasi primary school in Ward 19, Zimbabwe ensures that the product meets the protective needs of the households who enroll in R4. WFP/Sikhumbuzo Moyo
R4 1,651 households (9, 245 pe rsons) Zimbabwe 66 percent women 2019 Masvingo and Mwenezi Aquaculture, Blue Marble, CIMMYT, Foundations for Farming, Ministry of Lands, Agriculture, Water, Since 2018 Climate and Rural Resettlement, Old Mutual, SNV
SDC, USAID
Key Achievements • Scale-up: From 500 farmers insured in 2018/19 to 1,651 protected by weather index insurance for the 2019/20 season. • Expansion: The R4 programme expanded from one ward to four wards. • Sustainability: 158 farmers paid 15 percent of their premium in cash, with total cash contribution amounting to US$355. • Cumulative value of savings: US$12,024. • Zimbabwe became the first-ever country in the Southern African region to test the ARC Replica instrument in collaboration with the Government of Republic of Zimbabwe and the African Risk Capacity (ARC).
38 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 R4 Programme in Zimbabwe 2018/19 context marked by adverse weather and The R4 initiative in Zimbabwe , currently supporte d by SDC and macroeconomic conditions USAID, builds upon and combine s the knowledge and capacity The 2018 /19 agricultural season was affected by a delayed start accumulated by WFP and partners on productive asset cre ation of rainfall and erratic rains. While rainfall levels across most parts (FFA), appropriate se eds and agricultural practice s, we athe r index of the country we re below the normal long-term average, areas insurance, promotion of savings and acce ss to cre dit. In addition to in the southern and western regions covering parts of Masvingo the four risk manage ment activities, R4 in Zimbabwe also supports were worst affected as no significant rains were received during farme rs’ access to markets, linking with WFP’s Smallholder the first quarter of 2019. In addition, Cyclone Idai contributed to Agricultural Market Support (SAMS) programme , as we ll as the further deteriorate the agricultural conditions in the country. The improvement of farme rs’ decision making in the context of climate combined effect of these events caused a steep decline in the change and e rratic rainfall patterns, through climate services. area harvested and lowered yields, resulting in a maize output of about 780,000 tonnes, more than 40 percent below the previous Risk Reduction component: In Zimbabwe, five-year average.27 $ farmers participate in WFP’s FFA programme ,
Prudent building assets that decrease the ir vulnerability to In 2019, the country faced extreme levels of food insecurity Risk Taking Risk Reducon Risk Reducon Risk Transfer $ climate shocks ove r time. Farmers also take part mainly driven by a steep reduction in domestic cereal harvest in appropriate see ds and agriculturalR4 practice s and significantly high food prices that have resulted in severe Prudent Risk Taking Risk Reducon activitie s, such as establishingRisk Reduco ndemonstrationRisk Transf erplots food access constraints, in addition to very poor macroeconomic of new cultivars or agricultural technologie s. $ conditions. The area of intervention experienced inflation and $ R4 Prudent currency depreciation that affected Zimbabwe from 2018 to $ Risk Reserves Risk Taking Risk Transfer component: Farmers gain access$ 2019, increasing the consumer price index by 64 percent. Risk Reserves Risk Transfer to we athe r index insurance $policie s through Prudent $ inve sting additional labourRisk Re servesin building riskRisk Taking Forecasts for the 2019/20 agricultural season expect rainfall to
Risk Reserves Risk Tr$ansfer reduction assets. When a drought occurs, be below average and characterized by a late start and erratic compensation for weathe r-related losse s rainfall. This, combine d with the anticipate d poor acce ss to Prudent 28 Risk Taking preveRisk ntsReduco farmen rs from se lling assets and Risk Reducon agriculturalRisk Transf erinputs, will like ly le ad to below ave rage croppe d area. stimulates faster recovery. R4
Risk Reserves and Prudent Risk Taking Project$ Status component: Farmers participate in Village $ In 2019, the R4 initiative scaled up its coverage from 500 farmers Prudent $ Savings and Lending groups (VSLs), whichRisk Reserves to 1,651Risk Ta (66king perce nt women). The initiative also expanded from Risk Reserves supportRisk Transf participantser in establishing small-scale one to four wards. savings used to build ‘risk reserves’. Farmers also access credit from the VSLs. $
Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ Prudent $ Risk Reserves Risk Taking Risk Reserves Risk Transfer
27. FAO. (2019) GIEWS- Global Information and Early Warning System Update: Zimbabwe. 28. FEWSNET (2019). Zimbabwe Food Security Outlook. http://fews.net/southern-africa/zimbabwe/food-security-outlook/october-2019.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 39
Belg season Kiremt season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BL M&E surveys
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies
Insurance coverage Savings and credits
M&E surveys SDC MTR
Rainy season Rainy season 2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage Savings and credits BCM OM MTR BCM M&E surveys
Long rains Short rains
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Payout Insurance coverage
M&E surveys OM BCM
FIGURE 10. Zimbabwe 2019 seasonal calendar
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage
Savings BL M&E surveys OM MTR
Risk Reduction Component were introduce d for participants who had be en in the programme 2, 000 farmers (64 perce nt women) engaged in asset cre ation for ove r a year. In 2019, the total sum insure d amounte d to activities in 2019. N ew assets were e stablishe d in four Wards US$165, 100 and the total pre mium amounte d to US$27, 597. in Masvingo District. Activities included excavation works, road maintenance work , nutrition garde ns, soil and wate r conservation In addition to microinsurance, WFP Zimbabwe became the first- work, bore hole drilling, wate rshed manage ment activitie s and eve r country in Southe rn African re gion to test the ARC Re plica stone and sand haulage . instrument in collaboration with the Government of Re public of Zimbabwe and the African Risk Capacity. For the 2019/20 pilot, Risk Transfer Component the Re plica cove r for WFP was about US$1 million. This innovative In 2019, a total of 1, 651 (66 pe rce nt wome n) we re insured against instrument will support a coordinated e arly re sponse to drought drought across four wards in Masvingo. Base d on fe edback and has the potential to significantly re duce humanitarian funding receive d from communities, the product was exte nsive ly revised ne eds. to trigge r smaller but more frequent payouts, while offe ring cove r for only small grains and not maize . A digital platform was As part of the climate risk financing portfolio, WFP Zimbabwe also developed in collaboration with the private se ctor to transition kickstarted the Fore cast-base d Financing (FbF) interve ntion thanks away from the pape r-based method and improve efficie ncy of the to additional funding re ce ived from the Inte rnational Fund for e nrolment proce ss. In line with the exit strategy of the inte grate d Agricultural Development (IFAD) and the N orwegian Ministry of approach, mandatory cash contributions (15 perce nt of pre mium) Fore ign Affairs (N ORAD).
INSURANCE PERFORMANCE INDICATORS • Growth Ratio: 230.2 percent increase in the number of farmers insured from 2018 to 2019. • Consumer Protection Investment Ratio: 36 percent. The ratio is very healthy given the expansionary stage of the project, demonstrating a strong focus on consumer protection. • Utility Ratio: 100 percent. The ratio is healthy and within the acceptable range (from 80 percent to 120 percent).
40 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Risk Reserves and Prudent Risk Taking Components R4/Lean Season Assistance Nexus Financial education activitie s focused on strengthe ning and Thanks to funding secured from the Swiss Agency for forming Village Savings and Loans (VSL) groups and financial Development and Cooperation (SDC), it has been possible to lite racy trainings. Moreove r, to cushion me mbers against link Lean Season Assistance (LSA) activities to resilience building Zimbabwe’s currency de pre ciation, financial e ducation trainings activities under the R4 programme, with the objective of have be en prioritizing le ssons on inflation he dging methods that supporting the humanitarian-development nexus. Under this include saving in foreign currency, asset-base d savings and income initiative, as part of R4, Foundations for Farming has provided a generating activities. hands-on training on Conservation Agriculture to 3,925 farmers (49 perce nt women) in Masvingo to help farmers increase crop This ye ar, a total of 1, 281 farme rs (93 perce nt wome n) participated yields and become more resilient. in 129 VSL groups. As of De ce mber 2019, groups have saved approximately US$12, 024 (ZWL 108, 312) and the average membe r Under the nexus initiative, SNV has also provided trainings to savings was at approximately US$9.44 (ZWL 85).29 3,156 LSA participants (67 percent women) that provided a basic introduction to financial education, savings and loans, value chain With regards to linking farmers to cre dit, R4 farmers are now and market linkages and risk and insurance. In collaboration e ngaging with the Zimbabwe Wome n’s Microfinance Bank (ZWMB) with AGRITEX, SNV has also supported the establishment of 11 where the bank has deve lope d a product whe re loans will be demonstration plots in targeted wards with the aim of promoting provide d in the form of inputs (i.e . se eds) and farme rs would re pay small grains among LSA participants. A total of 298 (58 percent the loan in the form of produce (i.e. sorghum grains). women) farmers participated in the trainings at the demo plots on best practices in sorghum production.
Access to markets In 2020, resilience oriented complimentary trainings will continue In terms of market acce ss, WFP’s Smallholder Agricultural to be provided in LSA wards, supported by additional funding Market Support (SAMS) programme has procured 6.502MT of secured from SDC. Moreover, to ensure linkages are fostered white sorghum from R4 farme rs just after one ye ar of integrated and the benefits of the continuum between the two initiatives resilie nce inte rventions. R4 is also e nsuring that farme rs have understood by communities, an internal nexus evaluation acce ss to inputs and appropriate extension support. Engage ments exercise will be carried out to reflect on and share lessons with se ed houses are unde rway to facilitate farme rs’ access to learnt, best practices, and challenges. This exercise will focus affordable small grain se eds. Information on se ed type s and on the LSA/R4 nexus and the current LSA resilience focused prices was also gathe re d and shared with farme rs. Following the complimentary activities. e ngage ment with Associated Foods Zimbabwe (AFZ) on a possible contract farming opportunity for R4 farmers, SN V has be gun mobilizing and grouping groundnut farme rs who will e nte r into Key programme findings contract and produce for AFZ. The R4 Outcome Monitoring survey conducted in 2019 shows the evolution of farmers targeted in Ward 17 of Masvingo District that have been participating in the programme since 2018. Appropriate Seeds and Agricultural Practices The survey revealed that R4 participants have managed to CIMMYT has been working to improve the productivity, maintain their food security and increase their resilience capacity income and resilience of farmers by encouraging the adoption in a context of drought and economic instability. When compared of improved and adapted agricultural practices and cultivars to households not participating in the programme, participants on dryland areas, tailored to the agro-ecological target zone. of the integrated risk management approach were better able to Some of the activities include the promotion of Conservation cope with the different shocks during the period under review. Agriculture (CA) practices, as well as facilitating the exposure of The savings component of the programme has been effective farmers to drought tolerant maize and legume varieties, millet, in tripling the number of households saving through VSLs. In and sorghum. A total of 210 demonstration plots have been set 2019, savings were used by most R4 participants to afford basic up to display different agriculture technologies for smallholder expenditures such as school, health, house or food, presenting a farmers in Masvingo and Mwenezi. change from the previous year were savings were also invested
29. US$/ZWL conversion was calculated using the average exchange rate for 2019, at interbank rate. The exchange rates for the last trading day of each month was used to calculate the average.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 41 in agricultural production. The analysis also observed that, Outlook for 2020 and beyond while the value of monetary savings has decreased, households In 2020, R4 aims to reach an additional 4,000 households in managed to incre ase their average number of animals. This Masvingo and Rushinga districts. The Zambuko Livelihoods change in saving habits is oriented to secure household’s Initiative30 will also be fully launched in Masvingo and Mwenezi economic capital by investing in storing values like animals and with a focus on strengthening social cohesion of communities, assets to avoid their depreciation. improving smallholder crop and live stock production, improving access to finance and markets and strengthening post-harvest The unstable economic environment in Zimbabwe requires handling, supported by USAID. adaptive programme management to ensure that the different risk management interventions are responsive to a changing The initiative is implemented in all R4 current and expansion environment. The saving component of the programme would wards31 in Masvingo district, as well as in Mwenezi wards 6 and need to be revised to avoid household’s loss of purchasing 10, with R4 partners CIMMYT and SNV also being involved in power/decapitalization of savings in local currency. Adaptation the implementation of the Zambuko initiative. WFP will ensure of the VSL to reduce the risk of savings’ loss due to devaluation, coordination and cross-learning between the two initiatives by promoting savings in stable currency/asset or other options, through: regular update meetings with partners; Quarterly R4/ should be considered. There is a need to further strengthen Zambuko meetings; lessons learned workshops; and information integration of the various R4 components in light of the changing sharing. operating context for more sustained resilience outcomes. This entails increased focus in promoting the adoption of appropriate In 2020, three operational exercises will be conducted to foster cultivars and agricultural practices for better productivity and linkages between the various initiatives, including a Lessons- increased production to reach critical volumes for market Learned Workshop, the Learning Framework, and the Nexus linkages, increasing incomes and allow farmers to create buffers Evaluation Exercise. Moreover, WFP Zimbabwe will participate in against risks through savings and investments. the final evaluation workshop of SDC second phase funding to R4 in Southern Africa, scheduled for the end of 2020.
SDC Mid-Term Review Moreover, the Green Climate Fund (GCF) proposal “Integrated Main recommendations from the SDC Mid-Term Review (MTR) Climate Risk Management for Food Security and Livelihoods in for the R4 programme in Zimbabwe (under R4 Southern Africa Zimbabwe focusing on Masvingo and Rushinga Districts” for the phase 2: 2017-2021) are summarized below: expansion of R4 activities in the country was approved in July 2019 during the 23rd Meeting of the GCF Board in Songdo. The • The MTR recommended that the current pilot phase of US$8.86 million funding, over a period of four years, will support the programme in Zimbabwe needs to be the object of an the continuous growth of R4 in the country, allowing it to reach in-depth lesson learning exercise, taking into consideration the its 10,000 households target. experience from other R4 countries in the region like Malawi and Zambia, to inform the roll out of the programme. • During the rolling out phase of the R4 programme , there is a nee d to define a le arning framework that provides key questions to de monstrate the effective ness of R4 components and the integrated approach. These que stions should be jointly develope d with donors, partne rs, governme nt counterparts and be neficiarie s, to ensure they inform needs of different stakeholders in R4. The framework will drive the data collection approaches and analysis of outcome monitoring data.
30. Differently from R4, the Zambuko Livelihood Initiative does not include insurance or asset creation activities but includes activities under the added component of social cohesion. 31. In Masvingo district, the Zambuko initiative is implemented in wards 12,13,15,16,17,18,19 and 25.
42 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Farmers participate in a focus group in Kaya, Burkina Faso, before the rollout of the R4 programme in Central North and East Regions in 2019. WFP/Mathieu Dubreuil
R4 702 households (3, 650 pe rsons) Burkina Faso 53 percent women 2019 Central North and East Regions
Inclusive Guarantee, Allianz Burkina Since 2019 BMZ
Key Achievements • 2019 marked the first year of R4 implementation in Burkina Faso, with the initiative insuring 702 households for the 2019 agricultural season.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 43 R4 Programme in Burkina Faso 2019 Agricultural season: Security incidents and In 2019, R4 was imple mented for the first time in Burkina Faso. delays in agricultural activities affecting agricultural The Country Office use d its own funds to initiate this pilot, with production a clear plan to support the Governme nt’s strategy to introduce The rainy season started off poorly with irregular rainfall in agricultural index insurance into the market. WFP focuses its June that continued until the beginning of July. This led to interve ntions on re silience building and market acce ss activities in cereal planting delays of 10 to 20 days. In the northern half Central N orth and East Regions. of the country, ongoing displacement and insecurity have prevented agricultural activities from being carried out or limited Risk Reduction component: In Burkina Faso, households to the cultivation of legume and other vegetable $ 32 $ R4 supports farmers to reduce their post-harvest crops that could be grown closer to homes.
Prudent losse s, promoting their access to credits and RiskPrudent Taking Risk Reducon Risk Reducon Risk Transfer Risk Taking Risk Reducon markets, through WFP’sRisk Purchase Reduco nfor ProgressRisk Transf er Increasing flows of Internally Displace Persons (IDPs) and limited (P4P) programme . R4 population movements have negatively affected agricultural R4 activities, which have dropped by 20 to 70 percent in most $ Risk Transfer component: Farmers gain access$ to communes in the north of the country. In addition, delayed $ $ Weather Index Insurance (WII)$ by participatingPrudent crop deve lopment and poor spatial and temporal distribution $ Risk Reserves RiskPrudent Taking 33 $ in trainings on Post-HarvestRisk Re Losseserves s (PHL)Risk Taking of rainfall have re duced yields locally. Particularly, the longer Risk Reserves RiskPrudent Transfer Risk Reserves RiskRisk TrTaansfkinger managemeRisk Reduco ntn and by adopting Risk Reducon dry Riskspells Transf iner Septe mber have severely impacted crop yields post-harvest technologies. and pastureland in the north and northeast of the country. R4 Elsewhere, the prolonged rains in October have damaged grains, Risk Reserves and Prudent Risk Taking resulting$ in crop losses. The combined effects of these factors component: Farmers also receive a capacity-$ resulted in below-average agricultural production in the north of Prudent $ building package aimed at increasing Risk Reserves the country.Risk Taking34 Risk Reserves agribusinessRisk Transfer investment through credit and marketing. Project Status $ 2019 mar ked the first year of R4 implementation in Burkina Prudent Faso, with WFP providing 702 farmers (56 percent women) Risk Taking Risk Reducon Risk Reducon withRisk access Transfer to Weather Index Insurance (WII, based on relative R4evapotranspiration)35 in Central North and East regions.
$ $ Prudent $ Risk Reserves Risk Taking Risk Reserves Risk Transfer
32. FEWSNET (2019). Delays in agricultural activities and in the development of crops. https://fews.net/west-africa/burkina-faso/key-message-update/july-2019. 33. FEWSNET (2019). The food crisis could continue in and around Soum province. https://fews.net/west-africa/burkina-faso/remote-monitoring-report/august-2019. 34. FEWSNET (2019). Increased areas facing Crisis (IPC Phase 3) acute food insecurity https://fews.net/west-africa/burkina-faso/remote-monitoring-report/october-2019. 35. Relative evapotranspiration (rET) is defined as the ratio of the actual evapotranspiration (AET) to maximum evapotranspiration (MET), i.e. the evapotranspiration of the same crop at the same phenological stage under non limiting water conditions. Evapotranspiration (ET) is the sum of evaporation and plant transpiration from the Earth’s land and ocean surface to the atmosphere.
44 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 FIGURE 11. Burkina Faso 2019 seasonal calendar
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys
Risk Reduction Component The Burk ina Faso CO is also participating in the ARC Replica In 2019, WFP conducted Training of TrainersRain y(ToT) seas onon Post-Harve R st instrument, another me chanism in the climateai riskny financingseason Losse s (PHL) manage ment and on the principle s of microinsurance portfolio. ARC Re plica is an insurance product offe re d by ARC in both regions2019 ra ofin Burkinafall Faso. In total, e ight traine rs be nefitte d Ltd to humanitarian organizations as an innovative approach to from capacity strengthe ning activitie s, including one woman. expand climate risk insurance cove rage to more people while also Participants we re then expe cte d to further disse minate le arnings improving the effe ctive ness of e mergency humanitarian responses among the ir own communities.Jan In July,Feb 500 smallholderMar Aprfarme rs May in vulneJun rable JulAfrican countrieAug s Sepprone toOct climate risks.Nov The initiativeDec receive dDR a Rfive-day acvi estraining from their communitie s’ traine rs on allows governments and humanitarian age ncies to quickly acce ss
PHLInsu inranc thee East co vere gion.rage Farme rs’ participation in the se trainings and channel financing to vulnerable pe ople in the eve nt of an was use d as a conditionality for their subscription to the insurance extre me drought. policy.Savings and credits
M&E surveys BL In August, anothe r ToT event was organize d for eight members Outlook for 2020 and beyond of the Catholic Organization for Deve lopme nt and Solidarity WFP is planning an expansion to 2,500 households in the same (OCADES) on PHL manage ment and microinsurance in the Ce ntral regions, but will improve upon the integration of the risk transfe r N orth region. 202 smallholde r farmers also re ce ived a training as a component with asset cre ation and market access activities. WFP conditionality for the ir insurance policy. has pre se nted the first pilot results to the Ministry of Agriculture , who is also working on agricultural insurance , which raised a lot of intere st in the inte grated approach promote d by WFP. WFP will Risk Transfer Component docume nt this work in the coming months. In 2019, 702 farme rs (53 perce nt women) accessed insurance in both regions of Burkina Faso, with a total sum insured of US$91,627 and the value of pre miums amounting to U S$10, 537.
During the year, farmers receive d training on Weather Index Insurance (WII). Particularly, 500 smallholde r farmers in July and 200 farme rs (43 pe rce nt wome n) in Septe mbe r we re trained on WII in the East and Ce ntral N orth region.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 45 Farmers participate in a training on basic principles of Conservation Agriculture (CA) in Gaza, Mozambique, which will be the conditionality for households to receive an insurance premium when the product is rolled out next year. ADRA/Mozambique Communications Team
2,600 households (15, 700 pe rsons) R4 Mozambique 70 percent women 2019 Gaza, Tete, Nampula, Zambezia MASA, MITADER, INGC, INAM, ADRA, Aceagrarios, Blue Marble, University of Reading, Since 2019 IRI, InovAgro
FICA, SDC
Key Achievements • The R4 initiative was introduced in Mozambique in 2019, with successful registration of 2,600 farming households. • The Green Climate Fund (GCF) Board approved Mozambique’s first GCF proposal “Climate resilient food security for women and men smallholders in Mozambique through integrated risk management” in November 2019.
46 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 R4 Programme in Mozambique 2018/19 Agricultural season: Multiple climate- In 2019, R4 was rolle d out for implementation in Mozambique, related shocks affecting agricultural production targeting its first 2, 600 participants in Tete and Gaza provinces, Mozambique is experie ncing its worst food inse curity e merge ncy thanks to funding from the Gove rnme nt of Flande rs. Farme rs will since the 2015/16 drought due to multiple climate -relate d shocks be able to access insurance by applying conservation agriculture including tropical cyclone s Desmond, Idai, and Kenneth with (CA) technique s. The inte grate d risk manage ment approach is associated torrential rainfall and severe flooding in addition to base d on four components:. drought in southe rn semiarid areas. The se shocks have significantly impacte d crop production and livelihoods across the country. Risk Reduction component: In Mozambique, $ farmers will apply CA techniques such as minimal Curre nt e stimate s from the Ministry of Agriculture and Food
Prudent soil disturbance , permanent soil cove r and crop Se curity (MASA) indicate ove r a million MT of crops (including Risk Taking Risk Reducon rotations. Farmers will Riskalso Re receduco iven tailoredRisk Transfer corn, rice, groundnuts, be ans, and ve getables) were destroyed $ we ather and climate information servicesR4 to nationwide as a result of the poor rainfall in the southe rn se miarid help the m better cope with increasing climate areas and the thre e cyclones. MASA e stimate s a ne arly 800,000 Prudent $ Risk Taking Risk Reducon variability and adapt theRisk ir decision-making Reducon Risk and Transf er MT loss in national maize grain production, repre se nting a $ farming practice s. reduction of more than 30 pe rce nt as compare d to the last two $ R4 Prudent Risk Reserves Risk Taking years’ average . Risk Reserves Risk Transfer Risk Transfer component: Farmers will be $ insured by applying CA te chniques.$ The Current house hold food stocks are much lower than ave rage in Prudent $ insurance product, toolsRisk and Re servesme chanismsRisk will Taking be southe rn semiarid areas as we ll as in the areas affe cte d by tropical Risk Reserves Risk Transfer piloted during the 2019/2020 campaign, with the cyclones.34
$ product be ing de signed and customize d for the local context, focuse d on drought. As this year Prudent Risk Taking is onlyRisk Re aduco dry nrun, no farme r will be insuredRisk this Re ducon ProjectRisk Transf Statuser season. In 2019, WFP targeted and registered 2,600 farming households R4(70 perce nt women), into its R4 programme in Gaza and Tete
Risk Reserves and Prudent Risk Taking province,$ thanks to financing from the Government of Flanders. component: Farmers will participate in Village$ This year, the Mozambique CO also started its work in Nampula Prudent $ Savings and Lending groups (VSLs), whichRisk will Re serves and RiskZambezia Taking provinces, with activities focused on piloting Risk Reserves supportRisk Transf participantser in establishing small- the insurance component and rolling out the climate services scale savings used to build ‘risk buffers’. Gross component, complementing the activities of SDC-supported margins analysis and market assessments will projects in these provinces. $ be conducted to plan the roll out of prudent Prudent risk taking in future years. Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ Prudent $ Risk Reserves Risk Taking Risk Reserves Risk Transfer
36. FEWSNET (2019). Mozambique Food Security Outlook. Atypically high humanitarian assistance needs will persist the start of the lean season. https://fews.net/southern-africa/mozambique/food-security-outlook/june-2019.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 47
Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies Insurance coverage Savings and credits M&E surveys FIGURE 12. Mozambique 2019 seasonal calendar
Rainy season Rainy season
2019 rainfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRR acvies
Insurance coverage Savings and credits
M&E surveys BL
Risk Reduction Component review the products and dissemination actions, with the obje ctive In 2019, WFP Mozambique started local partnerships to support of improving climate service s co-production and de live ry. farme r clubs and transfer sustainable agricultural practice s through Conservation Agriculture (CA) principle s such as (i) minimal soil Risk Transfer Component disturbance, (ii) permanent soil cove r and (iii) crop rotations. This Farmers will be insure d for the 2020/21 season by applying approach will go through 11 activitie s conducted by the farmer Conse rvation Agriculture (CA) technique s. The insurance with each activity be ing relate d to one, or more , of the thre e product, tools and mechanisms will be pilote d during 2020, diffe re nt principles outlined above. This ye ar, 104 de monstration with the product being designed and customize d for the local plots and farme r clubs we re established for the promotion of CA context, focused on drought. N o farme r is be ing insured during techniques, including the use of natural fe rtilizers, mulching, crop the 2019/20 season. rotation, and inter-cropping. The prototype insurance product was developed by the In addition to the above -mentioned CA key principle s, WFP’s International Institute for Climate and Society (IRI) during the interve ntion will also promote pote ntial wate r access and wate r last quarter of 2019 and will be used for a 2019/2020 dry run in manageme nt (WAM). This will be done by combination of on- and preparation for the 2020/2021 campaign. The product focuse s off- plot wate r harvesting and irrigation solutions (tre nches, swale s on the lack of rainfall and se eks to take a zonal approach, which and zai-pits) and small-scale irrigation schemes, such as surface is essential considering the size of the country, and make s water, or additional rainwate r through suppleme ntary wate r use of multiple rolling windows to enhance the protection of harve sting structure s. farmers. Seasonal monitoring arrange me nts have be en set up in collaboration with IN AM and MASA to track the rainy season During the year, farming implements we re provide d to farme rs, and agricultural campaign, respectively. including see ds for maize, cowpea and be ans, katanas, hoes, and whee lbarrows. Risk Reserves and Prudent Risk-Taking Components Pre parations are unde rway for farmers to participate in Village The disse mination of climate information services be gan during Savings and Le nding groups (VSLs) in early 2020, which will the third quarter of 2019, with a long-range fore cast be ing start supporting participants in e stablishing small-scale savings shared at the start of the agricultural campaign, followe d by used to build ‘ risk buffers’. Mapping of existing VSL groups the disse mination of in-se ason monitoring bulletins, including will be carried out and new groups will be formed as ne ede d. short-range forecasts. These are ge nerated by IN AM and are Groups will benefit from trainings on financial lite racy, groups disse minate d through a local NGO and government exte nsion dynamics, savings, and loans. They will also be supported to officers. During the last quarte r of 2019, a Planning and Review save for a pe riod of six months. The groups will share out the ir workshop was held with use rs and producers in e ach province , funds le ading up to the next agricultural campaign, allowing with te chnical support from the University of Re ading (UoR), to the m to make productive investments.
48 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 With financing from the SDC, the Mozambique CO started Outlook for 2020 and beyond activities in Nampula and Zambezia provinces this ye ar. The In 2020, the R4 Initiative will introduce the insurance work is focuse d on conducting asse ssme nts and a dry run that component to smallholde r farme rs, with the prototype will inform a strategy for introducing, integrating, and scaling up insurance product being pilote d during the 2019/20 agricultural insurance, as part of an inte grated risk manage me nt package season. The CO will continue promoting good agricultural into SDC-supporte d programmes. The work is conducted in practice s through CA and supporting VSL groups created in Gaza support of an agricultural developme nt project calle d InovAgro, and Tete provinces, in addition to supporting the expansion funde d by SDC, connecting farme rs with stakeholders, including of R4 activities, including climate services and smallholder agro-dealers, input providers, financial services and saving market access support to Changara and Marara districts in groups. Community consultations and focus group discussions Tete province, and in othe r vulnerable are as of the country, we re done in the month of N ove mber to better inform the espe cially in Gaza province. Moreover, the U$S9.25 million insurance de sign and triangulate desk re se arch. Gross margins funding from the Gre en Climate Fund (GCF) from 2020 to analysis and market assessme nts will be conducte d in the first 2025, will support the growth of R4 in the country, allowing quarte r of 2020 to plan the roll out of prudent risk tak ing in it to re ach 80,000 be neficiaries (51 pe rce nt wome n) as well future years. as supporting the expansion of the project to two additional districts.
Key programme findings Activities unde r the climate se rvices component will continue A baseline survey to colle ct key indicators was carried out in in targeted locations, with seasonal climate fore casts prepared Se pte mbe r. The baseline surveyed a total of 1,200 households by the N ational meteorological institute (IN AM) made available in the target and control are as of the project in order to and disseminate d by partne rs. With support of the Unive rsity measure , using panel data, the impact of the project on the of Reading, trainings on the PICSA methodology will be held target are a compared to the control group for the duration of for InovAgro partners and gove rnment exte nsion se rvice s to the project. help with the disse mination and use of climate se rvice s among farmers. WFP will support IN AM in installing 50 rain gauge s close to R4 targete d communities to increase the availability of climate information to support farme rs in making better informed farming-relate d decisions and improve their ability to manage climate -relate d shocks.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 49 A focus group facilitator marks the seasons that smallholder farmers identified as the worst crop failures since 1983, in Amhara, Ethiopia. WFP/Michael Goode
The Risk Transfer Component
Under the risk transfe r component, index-base d insurance - an Weather Index Insurance innovative type of insurance based on a proxy for losses- is Payouts are triggere d by the actualization of a specific we ather offere d to participants. Index based insurance compe nsates parameter such as rainfall measure d surpassing a threshold farmers base d on changes in a pre-dete rmined index corre lated ove r a pre-specifie d period of time, using e ither a particular with agricultural yie ld, rather than on-site asse ssments of actual we ather station or via satellite. The parameters of the insurance damage incurre d due to insured risks. Insurance payouts are contract are set so as to corre late , as accurate ly as possible , distributed to insure d farmers if the index falls beyond a pre - with the value of loss for a specific crop type. WII utilize d by determined threshold i.e . rainfall recorded ove r a certain period R4 is designed to cove r two main drought perils: (i) seve re ly is below the value set in the index for drought cove rage. late onset of rainfall or significant dry spe lls after sowing or in The indexes are designe d by spe cialize d re se arch institutions the middle of the season; and (ii) seve rely early ce ssation of such as the International Rese arch Institute for Climate rainfall or significant dry spells late in the season. As payouts and Society (IRI) or technical service provide rs from the are based on the same contract and rainfall me asurement for a private sector, such as Pula Advisors or Blue Marble , in close unit area, the nee d for an in-field assessme nt is e liminated and consultation with farmers, local and national gove rnme nt all insure d farmers within this define d area receive the same ministries, local partners and expe rts in agro-meteorology and payout leve ls. This product is currently offered to R4 farme rs in re mote sensing. Discussions during the index de sign phase Ethiopia, Se negal, Malawi, Zambia, Zimbabwe, and Burkina Faso determine the parameters for the index such as triggers, exits, with some adjustments de pending on the nee ds. Additionally, a freque ncy of payouts, fixed start of season, coverage windows hybrid index using vegetation indice s has be en adopte d for the and amount of the payout allocate d to each window. Index second window in Ethiopia. based insurance can be categorized into two types:
50 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Area Yield Index Insurance Hybrid Weather Index and Area Yield Insurance Payouts are base d on the realised ave rage yield of an area In 2019, WFP has also started experimenting with hybrid index such as a county, a district or even a village, not the actual insurance products. In Malawi, WFP is te sting the introduction of yield of the insured farme r. The insure d yie ld is established an Area Yield product for the 2019/20 se ason on a 50: 50 pre mium as a percentage of the historical average yield for the area. basis with the Weather Index Insurance (WII) product. The ide a A payout is triggered if the realised yie ld for the are a is le ss is to allow quick payouts with the we athe r index and also e nsure than the insured yield regardless of the actual yield on the farme rs are prope rly covered against any type of risk that may insure d’s farm. A credible and consistent yield time se rie s at occur at large scale. In Kenya, WFP and Pula have conducte d an the sele cted leve l of aggregation is re quire d to de sign such an assessment of the pe rformance betwee n only WII, only AYII or index insurance product. This product is currently offere d to R4 a hybrid combination, with the hybrid index pe rforming bette r farmers in Kenya. than the standalone products. The introduction in Malawi will be anothe r opportunity to ve rify hybrid indexes’ pe rformance before a possible expansion to othe r countries.
Index-based Livestock Insurance Starting in 2018, index insurance is also offered to pastoralists in the Somali region through the Satellite Index Insurance for Pastoralists in Ethiopia (SIIPE). SIIPE uses a pre-emptive approach, providing livestock asset protection insurance with the aim of keeping core breeding animals alive during major droughts. Under this type of insurance product, instead of providing payouts at the end of the season when the animals might have already died, early and regular payouts are provided in case of droughts to keep the core breeding animals alive and build the resilience of households in coping with droughts. These regular payouts during droughts can be used to provide supplementary feeding as well as timely veterinary care, which can be critical in keeping livestock alive. The insurance coverage uses innovative satellite technology to measure the availability of pasture in grazing lands for pastoralists. The product index is based on the Normalized Vegetative Difference Index (NDVI) with triggers calibrated to ensure that payouts start to trigger when pasture and grazing resources are scarce and likely to lead to animals’ malnourishment.
FIGURE 13. Calendar of rainy seasons in R4 countries
2019 Countries Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ethiopia Senegal Malawi Zambia Kenya Zimbabwe Mozambique Burkina Faso
As part of WFP’s effort to achieve Zero Hunge r, the Microinsurance at WFP organization strive s to increase acce ss to the protective cover Microinsurance is about deve loping and distributing insurance of microinsurance to smallholder farmers. The insurance products that provide protection for low-income people against products WFP works with provide coverage primarily for specific pe rils. Insure d pe ople are expected to pay pre miums, drought risk, which re sults in 80 pe rce nt of the total damage 37 which are market-based and proportional to the likelihood and losse s in agriculture . Since 2006, WFP has worked with and cost of the relevant risk. One of the key aspects that its partne rs to te st and scale up innovative ways of providing differentiates microinsurance from traditional insurance is that insurance prote ction that he lp people be come more re silient it targets pe ople who have limited or no acce ss to traditional and food se cure . WFP is now one of the leading UN agencies financial se rvice s as well as other means to effectively cope implementing microinsurance schemes at scale , inte grated into with the financial conse quence s of risk. a broade r strategy to manage climate risks.
37. The State of Food Security and Nutrition in the World (SOFI). 2018. Building climate resilience for food security and nutrition.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 51 Up to now, WFP has focuse d on increasing acce ss to parametric isolate d communitie s prone to recurre nt climate shocks do not insurance, a type of insurance based on a proxy for losse s, such have the resources to afford insurance premiums nor unde rstand as measure d rainfall or the me asured he alth of vegetation. index insurance , WFP adopts a social protection approach, Index-based insurance compensate s farme rs based on change s whereby it sets up me chanisms to facilitate access to insurance in a pre-dete rmined index corre lated with agricultural yie ld that initially offset capital costs of policie s for participants until (or harvest), rather than on-site assessments of actual damage insurance become s a well understood and cost-effective tool. incurred to crops due to insured risks. Insurance payouts are distributed to all insured farmers within a specific geographic One of these mechanisms is about offering insurance ‘ free are a if the index falls beyond a pre-dete rmined thre shold i.e. of charge ’ for participants, i.e . WFP pays the full premium rainfall recorded over a ce rtain period is be low the value set in to insurance companies on be half of farmers. However, the index for drought cove rage . microinsurance becomes a conditional transfer modality where by the participant fulfils predefine d conditions (typically For WFP microinsurance has two main roles: an investme nt in time and labour to re duce risk) in exchange for an insurance policy that WFP purchases on his/he r behalf and Protection:Microinsurance programme s can he lp the insurance company de livers to the participant. If the policy house holds cope with the conse quences of shocks is triggered the participant rece ives an insurance payout which by providing timely support after the disaste r has enable s him/her to minimise the financial impact of the shock occurre d. The monetary payout rece ived from an and re cover faster. insurance scheme in the eve nt of a shock is protective in nature, as it allows insure d house holds to me et food and othe r consumption ne eds. If well time d, Insurance as a Food Assistance Transfer Modality payouts can preve nt families from resorting to negative coping me chanisms and stabilise household Insurance programmes have long been considered part of the incomes in the aftermath of extre me we ather events. social protection landscape, with health, life, and unemployment insurance as common examples. However, insurance has only Promotion: By prote cting farmers against se lecte d recently been used as a food assistance tool. In a food assistance risks, insurance has the potential to unlock inve stment context, insurance provides a contingent transfer of cash (or in agriculture production that results in highe r potentially food or food vouchers) designed to meet a food productivity and incomes. Additionally, insurance need following a predefined future shock. can contribute to improving farme rs’ access to inputs and markets, increasing their productivity and Unlike other food assistance transfers, the transfer has two parts: incomes and helping promote sustainable pathways for transitioning vulnerable and food insecure 1. Insurance policy transfer. The first step is the transfe r of house holds from safety nets to more productive and the insurance policy itself. This transfe r is most often a sustainable livelihoods. Improved acce ss to inputs conditional transfer based on participation in a labour-base d can also occur as insurance supports smallholde r safety net programme or other relevant activity.38 While WFP farmers in acce ssing cre dit as policies can be used as would initially pay the full pre mium, in subseque nt years the collate ral with financial institutions when le nding to participant will be expecte d to pay an increasing percentage lower-income households. Ultimately, insurance can of the premium in cash. Although the premium that is paid be inte grate d with Ecosystem-based Adaptation (EbA) to insurance companies in exchange for cre ating assets is or N ature-based Solutions (N bS), which allow farme rs considered the ‘ transfer value’, the real value of this transfer to reduce the exposure of the ir live lihoods to climate is equivale nt to the sum insure d, which is hypothetical until risks while also restoring habitats that improve both the payout is triggered. ecosystem services and biodiversity that increase a community’s resilie nce . 2. Payout transfer. The se cond phase of the transfer takes place whe n the policy is triggered and a payout is made . The size of the Hence, whe n anchored in a compre hensive risk manage me nt payout de pends on the magnitude of the shock (as captured by approach, microinsurance has the pote ntial to help households the index) and is calculated as a pe rce ntage of the sum insured. stre ngthen the ir live lihoods and incre ase the ir resilience ove r the The sum insured varie s depe nding on its specific function and can long term. For the market to be sustainable, howeve r, the be nefits range from meeting basic food ne eds to cove ring the replacement of protecting farmers’ investme nts must outwe igh the cost of cost of lost assets (i.e. seeds) or providing the re sources nee ded premiums. As many vulne rable smallholde r farmers that live in to preve nt the loss of ce rtain assets (i.e. live stock).
38. In most cases, insurance has been provided based on additional work on asset creation (through FFA activities or possibly public works, like in Ethiopia). In other cases, like in Zambia through a collaboration with FAO, insurance has been provided on the condition that participants apply Conservation Agriculture (CA) measures in their production practices.
52 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 WFP distributes insurance as a conditional transfer modality for Conditionality Options two main re asons: Whether inte grated with othe r transfe rs or standalone , a 1. The conditionality should provide an ince ntive for farmers number of conditionality options can be conside re d depe nding to inve st in assets that lower their risks ove r time and thus on the spe cific context and objective s of the programme. These potentially reduce the price of pre miums by de creasing include: the frequency of expected payouts. This incentive can also be designe d to improve e cosystem functioning as well as Labour-based conditionality: Labour-base d conditionality has othe r environme ntal outcome s. To be eligible for insurance, be en the most commonly tested approach to conditionality farme rs work on community or individual risk re duction in the context of R4. In this model, be neficiarie s are require d assets or apply innovative techniques/practice s that re duce to work a pre-defined number of days in order to be eligible risks such as Conse rvation Agriculture (CA).39 Insurance to re ce ive an insurance policy. The numbe r of days of labour thus offers a further incentive for farme rs to e ngage in risk is normally calculated based on the price of the insurance reduction activities. policy (the premium) and the prevailing rural wage rate. Conditionality can either be set based on actual days worke d 2. The conditionality should signify that insurance has a cost or work norms defined as the average number of days that the farmer will progre ssive ly be expected to pay in cash. required to complete a specific task (i.e . build 100 mete rs From e nrolment into the insurance programme, farmers are of terrace ). Careful consideration of the labour burde n on aware that a cash contribution will gradually be introduce d, households is needed whe n de signing and impleme nting this re quiring them to pay a percentage of their insurance kind of conditionality with programme s that have existing premium in cash. labour components, including conside ration of ge nder spe cific norms. WFP’s Se asonal Live lihoods Programming approach provides an excelle nt tool for defining the timing Approaches to Conditionality for Insurance and inte gration of labour-base d food, cash and insurance Transfers transfe rs. This approach is curre ntly be ing imple me nted in Ethiopia, Se negal, Malawi, and Zimbabwe , where farme rs WFP has developed various approaches for incorporating acce ss insurance by inve sting additional labour in building conditionality into its insurance initiative s as we ll as othe r assets to improve their productivity and build the ir long-term transfers. This section outlines some of the possible options. resilie nce .
Integration with food or cash transfers: Integrating Blended labour and cash co nditionality: Similar to labour- insurance in programmes that already provide cash and/ based conditionality, ble nded labour and cash conditionality or food transfers to me et imme diate ne eds is the context re quire s that participants provide a partial cash payme nt in in which WFP has the most experie nce . Food assistance order to receive an insurance policy. The re mainde r of the programmes first se ek to fill immediate food gaps while cost of the policy is earned through participation in a labour- promoting activitie s that improve longe r term food security based programme . In the framework of R4, all countrie s and nutrition. Insurance transfe rs are normally adde d onto have introduce d a re quire me nt for participant households to these programme s for populations whose food insecurity is contribute in cash betwe en 10 and 20% of the total pre mium exace rbated by recurrent shocks. Insurance transfers in this amount starting from the se cond ye ar of participation, with case are de signe d to fill pre dictable food gaps in the year after cash payments expected to gradually re place labour ove r a shock , protecting gains made during a good year – gains that a realistic time period, which varies base d on context and are achieve d thanks to inve stments prote cte d by insurance , participants’ ability to pay. and re ducing future food assistance nee ds. Add-on to an existing conditio nality: Another approach Standalone transfers: While not yet te sted by WFP, insurance to integrating insurance transfers into a food assistance transfers could also be de signed as standalone transfe rs, for programme, is simply to add an insurance transfe r onto an populations who have a high risk of becoming food insecure existing conditional food assistance transfer programme . For should a shock occur. For example , beneficiarie s of a safety net example, without adding additional labour re quire me nts, an programme who have rece ntly graduated from the programme , insurance policy could be added on as an additional value to but whose livelihoods remain at risk, may continue to access a food or cash transfer to me et food ne eds from a potential full or partial insurance transfe rs to consolidate the gains they future shock and reduce resulting food assistance re quirements. have made and build up enough capital to be able to absorb This kind of approach is most appropriate for highly food future shocks. insecure populations facing high leve ls of recurrent shocks, and who are typically labour constraine d.40 However, this
39. Conservation Agriculture (CA) is a farming system that can prevent losses of arable land while regenerating degraded lands. It promotes maintenance of a permanent soil cover, minimum soil disturbance, and diversification of plant species.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 53 conditionality approach could re pre sent an obstacle whe n would trigge r. Although not an individual household-leve l trying to monetize access to insurance and progressive ly insurance me chanism, the African Risk Capacity sovereign transition towards cash payme nts. Another option could insurance has taken a practice-based conditionality approach, be to provide a mate rnal and child health insurance policy requiring participating gove rnme nts to prepare a contingency to participants of a supple me ntary fe eding programme plan in orde r to be e ligible for coverage . that is contingent on mate rnal and child che ck-ups at a local health ce ntre. In exchange for participating in these Market-based or full co st: The final option is to require checks and associated training, be neficiarie s would receive participants to pay the full market cost of the insurance policy. supple mentary foods and a health micro-insurance policy In this case, WFP and its partne rs could provide the initial that would cover basic medical care for the mother and child. inve stme nt to support product development and de live ry in This approach, which has not yet bee n trie d, illustrate s a non- areas where the local insurance market is unable to do so. labour-base d approach to insurance transfe rs. Farme rs not eligible to participate in a safety net, or who have graduated from one, could pay for the full cost of insurance . Practice-based conditionality: In Zambia, farme rs receive an It may be applicable for those farme rs who participate in a insurance policy by adopting Conservation Agriculture (CA) Smallholde r Agricultural Market Support (SAMS)41 programme practice s. The policy provide s prote ction for the farmers or for farme rs who have ‘graduate d’ from FFA deve lopment as they change the ir agricultural practices and is expected programmes and built ade quate household capital to be able to meet the ir food nee ds in case a drought eve nt occurs. to afford insurance. This approach was also introduce d in Kenya this year, whe re farme rs receive insurance policie s for growing drought Unconditional. Lastly, the provision of insurance could be resistant crops and adopting recomme nded agricultural unconditional – or based pure ly on food nee ds and a high practice s. Mozambique will also adopt a similar approach for risk of future food deficits due to recurrent shocks and the next agricultural season. Practice-base d conditionality can stre ssors. This approach has not be en te sted by WFP and esse ntially be see n as an ince ntive mechanism for improving it is unclear if microinsurance would have a comparative live lihoods and food security. Another option for practice- advantage against other continge ncy funding mechanisms. It based conditionality, could be participation in a community is important, howeve r, to diffe re ntiate unconditional transfe rs eme rge ncy preparedness programme, like the development from programmes that bundle different transfe r modalities of a house hold evacuation and e me rge ncy plan or the setting (food, cash, voucher, insurance ) with a range of conditionality up of a (contributory) community-leve l fund to deal with structure s. more fre quent shocks be low the threshold at which insurance
40. This, specifically for weather insurance, would probably require a more detailed cost benefit analysis, compared to providing a direct transfer. 41. Smallholder Agricultural Market Support (SAMS) is WFP’s flagship programme connecting smallholder farmers to markets.
54 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 WFP and partners introducing the integrated resilience approach to communities in Ward 18 of Masvingo District, Zimbabwe. WFP/Jyothi Bylappa
Monitoring, Evaluation, and Learning (MEL)
In the evaluation and learning age nda of R4, differe nt tools impact of the program in its totality. This syste m is based on have be en applie d to assess progress in the implementation a seque ntial set of assessments to track participants’ acce ss of the programme and its effects on participant households to different services over time , assessing the quality of those by country and across the differe nt deve lopment stages of the services—with a particular focus on the pe rformance of initiative. microinsurance —including the opinion of use rs, and measuring the effe cts of the inte grated approach in a rigorous, transparent A rigorous monitoring, evaluation and learning (MEL) syste m and cost-effective manne r. The diffe re nt components and is being rolled out across countrie s in orde r to assess the objective s of the MEL syste m are outline d below.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 55 Track the level of implementation o Conduct specific gender analysis; • Ho usehold Registration and Output Monitoring o Understand effe ct of shocks and resilience capacities. • Monitoring Insurance Key Performance Indicators ( KPIs) • Beneficiary Contact Monitoring Survey (BCM)
Consider the perception of participants Measure the changes promoted by the • Qualitative Focus Group Discussion (FGD): programme Qualitative surveys aim to: • Regular Outcome Monitoring o Answer a specific research question; • Evaluation and Reviews o Better understand the quantitative results; Facilitating Learning between R4 Countries o Understand the perceived effect of the components of the program; • Global R4 Learning Events
FIGURE 14. Timeline of M&E surveys or analysis conducted in 2019
2019 Countries Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ethiopia BL Tigray BL Amhara Senegal BL Malawi Mid- Term Review OM 2 BCM Phase II BCM OM 8 Zambia Phase I Mid- Term Review Kenya OM 2 BCM 3 OM 1 Zimbabwe BL 2 Mid- Term Review Mozambique BL
Legend Baseline Outcome BCM Mid -Term Review
Key Findings and Recommendations Quality of the insurance product: Key performance indicators of the insurance products Level of implementation To ensure the quality of the insurance component of R4, the programme has set up an Insurance Performance Indicators House hold re gistration and output monitoring is done monitoring system. These Key Performance Indicators (KPIs) pe riodically with the support of impleme nting partners to are standard indicators recommended by the Microinsurance inform WFP on the magnitude of the inte rvention, acce ss to Network—a global multi-stakeholder platform for professionals the different compone nts, e ntry and exit ove r time and to and organisations working on microinsurance. KPIs are used to assist in defining a clear graduation path. In line with WFP’s track the quality of the insurance component and how products be neficiary guidance, the organization continues developing a are providing value for money. Key Insurance Performance standardize d corporate tool and methodology for re gistering Indicators that are being measured by R4 include: Growth be neficiaries. Rate; Promptness of claims settlement; Consumer Protection Investment Ratio; and Utility ratio.
56 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Comparative Analysis of Insurance Performance Indicators addre sse d through increasing the training insurance companies This section highlights key take aways from comparison of the re ce ive to implement and measure the K PIs. This can support four Insurance Pe rformance Indicators among the R4 countrie s improvements in the overall pe rformance of the portfolio whe n where the risk transfer component is operational. Overall, companies are able to effectively track these indicators and the se indicators showed a positive trend on portfolio growth, enact measure s to achieve these targets. quality of the product, and a gene ral improve me nt in the spee d at which payouts are released afte r the index triggers, Growth Rate compared to previous ye ars. Howeve r, in most countrie s This indicator dete rmines the incre ase in number of insured payouts are still re leased way beyond the target time of 60 days participants on an annual basis. The acceptable value varies after the insurance product has trigge re d, an issue that can be according to the project de sign target.
FIGURE 15. Growth Rate indicator in R4 countries
From 2018 to 2019 the R4 initiative grew at an ove rall rate The numbe r of participants re mained stable with no new of one percent due to the different deve lopme nts within e nrolments unde rtaken this ye ar in Zambia while increasing in countrie s in the number of insure d farme rs. Particularly, the re Malawi (+2.5 percent) and Zimbabwe (+230 percent) due to was no geographical expansion in a numbe r of R4 countrie s the ongoing expansions of the programme s in these countrie s. in 2019, such as in Malawi, Ethiopia and Zambia, which Zimbabwe displayed the highe st growth, as the numbe r of resulted in a reduce d growth rate. The focus this ye ar was participants almost triple d. Conve rse ly, Se negal and Ke nya saw a on consolidating the portfolio and pre paring expansionary reduction in the number of e nrolled farme rs by 11 and 7 perce nt activitie s for next year. respe ctively. As Zimbabwe is curre ntly in an expansionary stage after the first year of introducing insurance at small scale, it is not surprising to achieve such a growth rate .
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 57 Promptness of Claims Settlement days re duce d from 90 during the 2017 Short Rains se ason to This indicator measures the efficie ncy of the claims’ settle me nt 85 for the 2018 Short Rains season. However, this is still above process. The acceptable value is less than two months from the ideal limits and should be improved in upcoming seasons. closure of se cond window for Weathe r Index Insurance (WII) Zambia also saw a small improve me nt from 234 days during the and crop cuts for Are a Yield Index Insurance (AYII). As timely 2017/18 season to 167 during the 2018/19 season, but these insurance payout plays a vital role in facilitating recovery from figure s are still very high outside the acce ptable range. Delays droughts and e nsuring food security, tracking this indicator during the 2018/19 season were a result of the process for provides a key me asure of effective ne ss of the risk transfer farmers to enrol in the digital payme nt platform MTN Zambia, component of R4. which was used for the first time to process payouts, but for next year farme rs will already be registe red to the platform, Since 2015, the ave rage time to delive r a payout in the diffe rent thus expediting the payout process. Overall, stronge r efforts are countries is 133 days, double the acce ptable value . While the ne eded to re duce the time for participants to rece ive a payout indicator presents an ove rall improve me nt in number of days to under 60 days ove r the next seasons. As the R4 portfolio re quire d to settle claims ove r the ye ars, this may also be a expands to cover an incre asing numbe r of house holds, the re sult of countries not having a payout ye ar, and therefore this time re quire d for claims settleme nt may increase, the refore the indicator will ne ed to be closely monitore d in subsequent ye ars. programme will ne ed to increase training for local insurance In Senegal, the number of days drastically re duce d from 163 in company partners as well as explore innovative te chnologie s 2017 to 65 this ye ar, being the only country whe re the figures that can remove the bottlenecks that are resulting in delays, are just above the acce ptable limits. In Kenya, the numbe r of including digital payments and mobile money.
FIGURE 16. Promptness of Claims Settlement indicator in R4 countries
58 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Consumer Protection Investment Ratio Utility Ratio This indicator measures the amount of re source s dedicated This ratio me asures in which proportion the sum insured meets for consumer protection—financial lite racy, aware ne ss, and the utility re quire me nt of the insure d participant. For example, communication. The indicator is the proportion betwe en the depe nding on context, the sum insured should be sufficient to meet consumer protection investment and the implementation cost the re quire d number of months of house hold food expenditure , of the risk transfer component of R4. The acceptable value is the value of key agricultural inputs or enable payback of a loan. This greater than 0.1. Trends in this indicator can provide insights indicator plays a key role in understanding whethe r the sum insure d into the levels of investment nee ded to sustain a planned is accurately set to capture the changing ne eds of participants. A scale up. we ll-de signed insurance contract will usually have a utility ratio betwee n 80 pe rcent and 120 percent, indicating that it me ets The indicator prese nts positive value s in all R4 countries for demand of the policy holde r. 2019 and a gene ral improve ment ove r the years. In Sene gal, the amount of resources dedicate d to consume r prote ction This indicator shows he althy value s in all R4 countries, with high incre ased from 22 perce nt in 2018 to 30 pe rcent in 2019. ratios prese nt in eve ry country. This reflects the viability of insurance Ratios in Zimbabwe are quite high, give n the expansionary across the R4 countrie s and the sustainability of the products. stage of the project, the re has be en a strong e mphasis on Overall, values across countrie s have be en incre asing over the years. consumer protection whe n enrolling new households. Ke nya In Ethiopia, values have increased from 47 percent in 2015 to 96 also saw an increase from 23 pe rce nt in 2018 to 29 pe rcent percent in 2019. In Malawi, the ratio incre ase d from 60 pe rcent to in 2019. In Ethiopia, ratios are above the re quired threshold 103 percent. Kenya saw a pe ak in 2018, with a 100 pe rcent ratio, but are lowe r compared to othe r countrie s, ranging from decre asing to 80 percent in 2019. Sene gal also saw a peak in 2017, 13 percent in 2018 to 15 perce nt in 2019. Zambia presents reaching as high as 325 pe rce nt, and decre asing to 179 pe rce nt this the highest value , with 48 pe rce nt of resources allocate d to year, closer to the ideal target of 100 percent. Exce pt for Sene gal, consumer protection. the re is re latively good converge nce to the appropriate leve l of sum insured compared to the nee ds, which can be validate d by an updated gross margin analysis.
FIGURE 17. Consumer Protection Investment Ratio indicator in R4 countries
FIGURE 18. Utility Ratio indicator in R4 countries
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 59 Perception of participants The training and communication components of the programme we re positive ly rated by all participants Through Beneficiary Contact Monitoring (BCM) surveys, WFP inde pendently of the pay-out re ce ived. Howeve r, in Zambia analyses the insurance payout distribution proce sses and leve l of mobile payme nts introduce d this ye ar did prese nt some satisfaction among farmers. BCMs provide a de epe r unde rstanding imple me ntation challe nge s. As a result, it was re commende d of participants’ pe rspective on the acce ss to, use of, satisfaction, to further enhance farme rs understanding of mobile money and accountability of the insurance payout process. The se surveys technology to he lp facilitate future payments. are usually conducted one month after an insurance payout is disbursed and are aimed at informing and orienting the initiative Building from the findings of the BCM, R4 countrie s are to the real nee ds and perce ptions of the population se rved. developing practical actions that will further e nhance the programme. The most relevant recommendations from this Surveys conducted after the disburse me nt of payouts in Zambia proce ss are summarized here: and Ke nya showe d that insurance payouts we re mainly used to purchase food, agriculture and livestock inputs, cove r basic nee ds • In Ke nya it was suggeste d to adopt agroecological zones and live lihood investments. Utilizing the payouts for the se purposes as unit areas of insurance to reduce basis risk and avoid has the pote ntial to limit the degradation of house hold food security ve ry small payouts; after a faile d growing season. In Kenya, the importance of education • Changing the payout payment channel to mobile money in household livelihood strate gies re sulte d in participants de dicating rather than bank accounts, in an effort to alleviate the a large portion of the payout on school fee s, reducing school impact of withdrawal fe es and transport costs. This change dropouts eve n during a period of crisis. ne eds to be supporte d with enhance d capacity building in countries like Zambia were farme rs have less familiarity While the level of satisfaction varied according to the amount with curre nt mobile technology; of payout rece ived, most participants are highly satisfied with • Introducing VSLAs as the entry point for farmers’ the R4 programme and the microinsurance compone nt. In organization, which will not only build their financial various R4 countries, households that received an insurance capacities to contribute to insurance pre miums, but payout state d they would enroll again and are willing to pay provide a formal space for trainings and community a cash contribution for insurance in the future . Based on the discussions facilitate d by partne rs on nutrition, ge nder, evidence , it is recomme nded to set a floor to payouts to both insurance, GAP, etc. improve use r’s satisfaction and avoid distributing payouts that are below the transaction cost for retrieving the m. Inde ed, some participants in Kenya reporte d that the bank through which payouts were transferred asked them “to de posit KSh200 in orde r to withdraw KSh150 which they re ce ive d as a payout”.
FIGURE 19. Reported use of payout in Kenya 2019
Main expenditure of payout in % of households
Housing Debt/Loan/microcredits repayments Income generang acvies Agricultural inputs Medical treatment/medicines Transport Livestock/Livestock inputs School fees/educaon related costs Food 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
60 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Measuring Change situation was obse rve d with access to cre dit, with only 30 percent of households able to acce ss cre dit that was used Regular Outcome monitoring primarily for school expenditure s. However, in 2019, an A quantitative survey is conducted regularly to unde rstand how important incre ase in the number of households using loans to R4 participants’ situation has evolve d from the be ginning of inve st in income ge nerating activities was obse rve d. the inte grated climate risk manage ment intervention. Outcome indicators collect information on the food security, we alth, In Zambia, farmers expe rie nce d two consecutive dry spells agricultural production, financial situation and house hold during the 2017/18 and 2018/19 farming seasons. These two re silience capacity. The se regular evide nces provide actionable seasons were characterized by extremely high temperature s, orie ntations during the implementation timeframe. Baseline s heavily affecting the country’s food se curity. The southern and are conducted in inte rvention are as whe re the programme is we stern re gions of Zambia we re the worst affecte d, le ading to being introduce d and in which new participants are enrolle d. high leve ls of crop loss (more than 50 percent in most case s), In 2019, base lines were conducted in Mozambique, whe re high live stock mortality because of re duced pasture , water and the initiative commenced operations; in Ethiopia and Se negal, increased dise ase burde n. Despite this challe nging context, R4 where new long-te rm funding will enable the programme to participants in the programme since 2015 have reduce d the expand to additional areas with new participants; and in three use of ne gative coping strate gies, with 97 pe rce nt of farme rs in wards of Masvingo Province in Zimbabwe, due to programme 2019 not resorting to any coping strate gy, a vast improve me nt expansion. The ove rall results of the baseline s conducted when compared to the beginning of the programme, when in 2019 reve al that the initiative has targeted vulnerable only 36 perce nt did not use a coping strategy. During this house holds where farming is a main source of income , period, farme rs doubled the area cultivate d with conservation complemented by some live stock production. In Ethiopia, agriculture practice s from 1 to 2 he ctares and the percentage for example , more than 80 pe rce nt have an income be low of farmers with marketable surplus went from 47 perce nt to US$3.10/day Purchasing Powe r Parity (PPP) considere d as the 69 pe rce nt. This also coincided with an incre ase of the numbe r international extreme poverty line. The reference provided by of house holds investing in agriculture from 10 pe rce nt to 50 the se baseline s will be used to compare the evolution of R4 percent, implying that the farmers had higher solvency due to participants in the following rounds of monitoring surveys and improved incomes. presented in the future annual reports. Zimbabwe expe rie nce d high levels of inflation and curre ncy Regular outcome monitoring surveys are conducte d at least depreciation from 2018 to 2019, which incre ased the consume r once a year with R4 participants and whe re possible , include a price index by 64 pe rce nt. In addition, the 2018/19 agricultural group of non-participants with similar characte ristics to serve season was affecte d by a de layed start of rainfall and erratic as control group. The outcome monitoring re sults of Kenya, rains. In particular, project areas in Masvingo received no Zambia and Zimbabwe indicate that: significant rains during the first quarte r of 2019. Give n the inflationary situation, the purchasing powe r of R4 participants In 2019 in Kenya, the cumulative effe cts of two conse cutive decre ase d by 10 percent, leading to an 8 perce nt increase in seasons with be low average rains and low yie lds have the share of income de dicated to food expenditure. To cope contributed to a re duction in the improve me nts observe d in with this e conomic shock, households put in place a se ries of early 2018 following two important insurance payouts. Despite coping strategies in orde r to maintain the ir food consumption a better harvest in 2019, food se curity and socio-e conomic at constant levels. These strategie s he lped households indicators monitore d for the R4 participants deteriorate d, such maintain constant we alth and food se curity ove r the pe riod, with that they are currently in a similar state as the households 67 pe rce nt of R4 households classified as food secure, albeit in the control group that did not receive any support in the still vulne rable , without eroding their assets and livelihoods. period. This situation is the result of seve ral shocks hitting the The savings component of the programme has be en effective are a of interve ntion (drought, market price spikes, armyworms in e ncouraging households to save through this mechanism. and crop and livestock pests), which we re aggravate d by the Unfortunately, the minimal amount saved in cash on ave rage cumulative effe ct of two faile d se asons on yie ld levels and confirms that due to the e conomic situation of the country house hold food stocks, market price volatility, a re duction house holds prefe r to invest in livestock as a store of wealth. on external assistance and the me agre effect of a minimal Compare d to the control group, participants of the inte grated insurance payout. R4 households’ income de creased by re silience approach appear to have coped better with the almost 10 percent in 2019, this reduction coupled with an different shocks in the pe riod. However, as insurance has not increase of the price of maize in the market led to an increase triggered during this pe riod, it is difficult as of yet to document in households’ food expe nditure share to 63 percent of the the effe cts of this instrume nt. total. This situation, combined with the reduced insurance payout, contributed to a 20 percent decrease in the number Main le ssons learnt from the outcome monitoring system in of the households that were able to save from 2018. The same 2019 to guide future programming indicate that:
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 61 • Microinsurance should not be considered as a standalone Spe cific re commendations provided by the review for interve ntion and ne eds to be embe dde d into an inte grated addre ssing the concerns identified will be implemented during risk manageme nt approach for it to contribute to 2020 exercise to improve programme quality. household’s re silie nce and food se curity. In addition, a minimum payout amount should be introduce d that provide s meaningful benefits to farme rs. Facilitating Learning Across R4 Countries • The re is a need to work on the de sign of savings and cre dit syste ms that can be functional eve n in case of e conomic shocks In an effort to share best practices, agre e on the minimum level of components in inte rve ntions, and discuss mainstre aming of like the one s expe rie nced in Zimbabwe . The saving compone nt R4’s integrated climate risk management approach within WFP, of the programme would ne ed to be revised to avoid household a global R4 le arning event was held in September in Rome, loss of purchasing powe r/de capitalization of savings in the local Italy. The retreat was also an opportunity to discuss scalability, currency. Re comme ndations include promoting savings in stable sustainability and evidence building of the mode l. currency/assets but othe r options should be conside re d to maintain the functionality of saving syste ms that can provide an The retreat conve ned R4 coordinators from Ethiopia, Sene gal, e sse ntial buffer to absorb smaller but more freque nt shocks. Zambia, Kenya, Zimbabwe, Malawi, Mozambique and Guatemala Country Offices (COs), and colle ague s from Regional Evaluations and reviews Bureau Johanne sburg (RBJ) and He adquarters (HQ). On an ad-hoc basis, reviews and evaluations are conducte d to unde rstand the relevance, cohe rence, effectivene ss, efficiency, Priority areas of work discussed during the event include d: impact and sustainability of the intervention. In 2019, a, country strategies on long-term sustainability and transition, exte rnal Mid Te rm Review was mandate d by SDC on operations scale-up, monitoring and evaluation, integration of R4 in Malawi, Zambia and Zimbabwe . The aim of the review was components, local capacity strengthe ning and increased to asse ss the effectiveness, efficiency and sustainability of the coordination of R4 te am across WFP’s diffe re nt institutional programme activities as we ll as the application of principle s offices (HQ/RBs/Cos). of gende r and HIV and the quality of the programme’s monitoring, evaluation and reporting system. Some of the most important issue s that we re highlighted during the retre at, representing common challe nges and opportunities The MTR has shown that “R4 has potential value adde d in the at the operational, strategic and system/management leve l target communities and does contribute to household re silie nce included: building. Case studie s from Zambia and Malawi show that, R4 has le d to increased re silie nce to drought spells and VSLs are • Capacity strengthe ning of staff is ne eded to understand contributing to the stre ngthe ning of social capital and enhancing and manage the R4 programme, particularly the insurance financial inclusion of targeted be neficiarie s. When imple me nted component, including index de sign, costing and monitoring; togethe r, R4 interventions provide syne rgie s and comple me ntaritie s • Minimum te chnical standards and guide line s are ne ede d to which cannot be achieve d if e ach compone nt we re to be facilitate processes; imple mente d in isolation.” • Better integration of R4 with other resilience compone nts is ne ede d; In re gard to the insurance compone nt, the MTR revealed that it • Lack of funding, expertise, changing policies and a syste matic works well whe n certain conditions are met, including: a broad approach to capacity strengthe ning hinder the scale up network of stake holders are involved, farme rs work togethe r to of microinsurance as part of an inte grate d climate risk colle ct and ve rify information used for claims; affordable and manageme nt approach; staggered insurance pre miums are available; insurance pay- • Capacity development of partners and increased partne r outs are made to beneficiaries regularly; and insurance covers coordination and engageme nt for inte grate d resilie nce is multiple hazards. fundamental; • Evide nce ge neration is key for inte rnal or external buy-in of R4; The MTR has shown that R4 has potential added value in • Sustainability and exit strategy ne ed to be well-re asoned and the target communitie s and does contribute to household planned from the start. re silience building. However, its potential positive impacts need to be harne ssed and sustaine d by addressing several challe nges Discussions and findings from the retreat are guiding the as: (i) improving the documentation and communication of the strategy and planning of the integrate d approach moving learning framework to a wider audience, (ii) e nhance cross- forward. Country missions to discuss challe nges, prioritie s, country learning, (iii) implement a cle ar graduation strategy scalability and sustainability are e nvisione d and will be for R4 participants, (iv) incorporate measure s that support conducte d in 2020. Moreover, incre ase d coordination and governme nt prepare dness to take ove r the initiative in the continuous communication and planning betwee n countries medium to long te rm and (v) enhance partne r coordination to and global R4 te am will be pursued. ensure the integrate d model conve rges at household leve l.
62 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Farmers participate in a focus group in Namarroi district of Zambezia Province, Mozambique. Thanks to financing from the Swiss Agency for Development and Cooperation (SDC), the Mozambique Country Office started activities in Nampula and Zambezia provinces in 2019, conducting focus group activities with farmers in both regions. WFP/Susanna De Sousa
Where are we and where are we going?
During 2019, the number of participants in the global R4 resilience-building into country programmes. Among the programme reached approximately 93,000, an increase of only countries where feasibility studies are ongoing or being planned, one percent from the previous year. Despite the entry of Burkina or where microinsurance products are in various stages of design Faso among the new countries under the R4 portfolio and a are Bangladesh, Cuba, El Salvador, Guatemala, Mali, Mozambique tripling of participants in Zimbabwe, this minor growth rate can and Uganda. be attributed to re latively stable numbers in all other countries, being mainly the result of delayed availability of funds. As part of the sustainability strategy of the R4 initiative, in 2019 WFP has scaled up investment in te chnical and programmatic The previous years’ efforts to mainstream microinsurance into capacity of local stakeholders and governments to ensure WFP operations are beginning to take hold, with an increasing national ownership of insurance products and systems. In number of Country Offices (COs) expressing interest and taking this regard, in Ethiopia WFP began consultations with two steps to introduce risk transfer instruments that strengthen local insurance companies to define the timeline for these
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 63 companies to take over design and distribution of microinsurance people, reducing the effects of economic losses and damages and products from 2020 onwards. In Malawi, trainings on We athe r reducing expenditures for humanitarian response that arise from Index Insurance (WII) de sign were conducted throughout 2019 repeated climatic shocks. Examples of this work include: with the index de sign te am, to support the development of a • In Kenya, WFP has been developing a concept for a risk national pool of experts from both the private and public se ctor. layering mechanism with the National Disaster Risk In Zambia, thanks also to funding from the International Fund for Management Authority (NDMA) and Pula Advisors that Agricultural Deve lopment (IFAD), WFP is working with the Ministry integrates the National Drought Emergency Fund (NDEF) and of Agriculture (MoA) to strengthe n national skills in product de sign microinsurance; and support the national insurance system, including through the • In Bangladesh, WFP is testing and developing a flood insurance Farme r Input Support Programme (FISP), which has introduced model that integrates with and complements an existing FbF microinsurance to around one million smallholde r farmers. mechanism; • In Zimbabwe, WFP bought its first ARC Replica policy for the WFP also continues to support the development of innovative 2019/20 season and launched an FbF intervention as part of products that help vulnerable farm ers access insurance policies its broader climate risk financing portfolio. These initiatives that best fit their needs across various regions and countries. complement WFP’s existing microinsurance activities and aim As a result, during the 2019 short rains season in Kenya, WFP at offering a range of innovative and complementary tools conducted a dry run42 pilot of hybrid index insurance products. to maximize efforts at building resilience to climate risks. In Malawi, WFP is already distributing its first hybrid index Zimbabwe is the first country where all the Disaster Risk insurance, which brings together Weather Index Insurance with Financing (DRF) activities are implemented together, although Area Yield Index Insurance (AYII). The idea is to allow quick at limited scale thus far. payouts in case of rainfall shortages through the weather index • In Mozambique, WFP is working to integrate the R4 model product, while at the same time ensuring coverage against a with a drought ea rly warning system intended to enhance broader range of risks that damage yields, such as pests or excess national drought monitoring and forecasting capacity. rains and floods, through AYII. R4 has continued in its efforts to build a systematic, rigorous, Starting in 2018, WFP has introduced pastoral insurance in transparent and cost-effectiveMonitoring, Evaluation and the Somali region of Ethiopia through the ‘Satellite Index Learning (MEL) system43 that is coherent across countries. Insurance for Pastoralists in Ethiopia’ (SIIPE) project. SIIPE is This starts from tracking participants’ access to services over a meso insurance scheme, built on the same components as time, assessing the quality of those services—particularly R4, and integrated with the government’s Productive Safety microinsurance—and measuring the effects of the integrated Net Programme (PSNP). The index is built to trigger payouts set of services on incomes, food security and livelihoods, as well early enough to ke ep the core breeding animals alive during a as the capacity of households to withstand future shocks. This drought, instead of providing payouts at the end of the season internal MEL syste m is complemented by and informs externally when the animals might have already perished. This early led analyses, reviews and evaluations of the performance of the payout mechanism requires very efficient processes. SIIPE saw R4 model.44 Despite uneven implementation between countries a 56 percent increase in the number of participants in 2019, there are lessons that can be drawn from information collected with a total of over 7,800 pastoralists insured. Moreover, dry in 2019 to inform corporate systems on resilience monitoring. spells during the 2019 season have triggered payouts of over US$95,000 for 1,721 pastoralists. A major challenge has been registration of participants and the digitalization of different processes (like insurance distribution). As part of an effort to strengthen its integrated programming WFP’s corporate system designed for monitoring cash transfers approach, WFP has increasingly focused on combining and requires substantial modifications to be able to record enrolment layering different climate risk financing instruments, including by different household members into a variety of services, Forecast-based-Financing (FbF), microinsurance and macro or including insurance, and track that participation over time. meso insurance. When implemented in the same geographic Advances have also been slowed down by the need to align the region, climate risk financing instruments can ensure that all registration and enrolment system with the strategy and needs of segments of the population are protected from a wide range of each WFP Country Office. climate-related risks. Better integration and layering between these instruments enhance their cumulative effectiveness in Quality of microinsurance services is a specific focus of the protecting the live s and livelihoods of the most vulnerable MEL syste m. In all countries, the amount of financial resources
42. An insurance dry run refers to testing a prototype insurance product and monitoring its performance for one season before the product is introduced into the market. 43. For more detailed analyses, please refer to the Monitoring, Evaluation and Learning (MEL) chapter. 44. For more information on analyses, reviews and evaluations of R4, please refer to Annex 4.
64 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 de dicated to consumer protection—including financial lite racy, interventions provide syne rgies and complementarities awarene ss, and communication as a proportion of overall which could not be achieve d if each compone nt were to be R4 imple me ntation costs—is above 10 pe rce nt. This is an implemented in isolation. However, potential positive impacts indication that the focus of R4 is not only on re aching a large nee d to be harnessed and sustained by addre ssing the diffe rent numbe rs of insurance clients, but in building sustainable operational challenge s that are currently limiting the effe cts of numbe rs of well-informe d custome rs and thus creating the R4’s integrated approach. conditions for the scale up of quality se rvices. Also, through monitoring of the utility ratio, there is evidence that the The R4 model continues to receive substantial interest from sum insured large ly me ets the re quirements of the insured donors. While KFW and SDC remain the main supporters of the participants and can address their ne eds in case of shocks. R4 Initiative at global level, a number of bilateral donors (DFID, Finally, despite an overall improveme nt over the ye ars in the FICA, KOICA, NORAD, SIDA, USAID), are currently providing numbe r of days re quired to settle claims, for 2019 the ave rage contributions, some of them multi-year and directly to WFP time betwe en the trigge ring of the policy and the actual Country Strategic Programmes, to support the mainstreaming transfe r of money to policy holde rs in all countries that had of microinsurance as part of integrated risk management. a payout is still on average an unacce ptable 117 days. This is Multilateral climate finance, through the Adaptation Fund and one of the major issues that ne eds to be addre sse d moving the Green Climate Fund, is also bound to become an important forward to bring this figure be low the target of 60 days after a source of funding to promote R4 as a model of climate change payout is triggered. adaptation in seve ral African countries.45
Most participants seem to be highly satisfied with the R4 Lastly, 2019 marked the end of Oxfam America’s transition from programme and in particular with the microinsurance component a programmatic to an advisory role, with WFP now taking the when an important payout is disbursed. The Beneficiary Contact lead on the management and scale-up of R4 operations globally. Monitoring (BCM) implemented in Kenya and Zambia in 2019 With this shift, Oxfam America is conducting a documentation reveals that the training and communication components exercise of the R4 global partnership, reflecting lessons learned of the programme were positively rated by all participants and successes ove r the past nine years. independently of the payout received. Building from the findings of the BCM, R4 countries are developing practical actions that will further enhance the programme through transitioning to mobile money platforms and using VSLAs as the entry point for Looking Ahead organizing farmers. In 2020, R4 will focus on supporting the development of The evidence provided by the outcome monitoring system sustainability plans for existing R4 programme countries. R4 confirm the trends observed in previous years, including that will continue to focus on building the capacity of governme nts food security of R4 participants steadily increases over time and local stakeholders in addition to supporting WFP Country as well as their capacity to withstand future shocks due to Offices in refining their exit strategies and e nsuring that the higher production and incomes, gre ater financial inclusion and capacity of national syste ms is be ing built. In the meantime , a stronge r asset base. Countries where new long-term funding the R4 global team will continue to offer advice to those WFP was received in 2019, such as Ethiopia and Senegal, conducted country office s that have expressed interest to introduce baseline surveys to ensure a reference is available that can be microinsurance as part of an integrate d risk management used to monitor the effects of the programme in expansion areas strategy and whe re existing conditions are conducive to and over a larger number of participants. deve loping microinsurance at scale .
Finally, an external Mid Term Review (MTR) was commissioned WFP will continue promoting the use of corporate registration by the Swiss Agency for Deve lopment and Cooperation (SDC) on systems to track participation in the different R4 programme R4 ope rations in Malawi, Zambia and Zimbabwe, to assess the interventions to understand how many households are able to effe ctiveness, efficiency and sustainability of the programme access an integrated package of services. Other programmatic activities. The MTR contribute d to the evidence that R4 has priorities will include designing more effective products through positive impacts on target communities and contributes to pursuing current work on hybrid indices, defining minimum house hold resilience. Case studies from Zambia and Malawi payouts, reducing transaction costs for insurance clients, as well show that R4 has le d to incre ase d re silie nce to drought, as addressing the obstacles to achieving more rapid payouts. with Village Saving and Le nding groups (VSLs) contributing WFP is also planning to expand the geographical coverage of to the stre ngthe ning of social capital and the e nhancement pastoral insurance in Africa, by exploring its application to other of financial inclusion. Whe n implemented together, R4 countries, such as Senegal.
45. For more information on donor contributions, please refer to Annex 6.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 65 Inve sting in evidence building will be a priority for expansion of insurance services at national level and facilitating the upcoming ye ars to inform programme design and the gradual access of resource-poor households to commercial implementation as well as for improving the cost effe ctivene ss services. of the R4 model. WFP will facilitate cross country le arning among COs implementing R4, through learning eve nts organized WFP will continue its efforts to integrate microinsurance with at global and re gional leve l, while also supporting bilate ral other risk financing instruments, such as sovereign insurance or exchanges and South-South coope ration. WFP will stre ngthe n Forecast-based Financing, and test the use of insurance indices as its evidence reporting on the adoption and utilization of the R4 parametric triggers for existing contingency finance and/or social integrated approach by participants across countries. Once the protection systems. different R4 interve ntions (insurance , credit and savings) are included in the corporate re gistration system, a comparative There are currently at least seven new countries where analysis of participants acce ssing diffe re nt combinations of feasibility studies and project design are ongoing. This year, tools can be pursue d. Moreove r, WFP has defined a research the Mozambique CO has started preparatory activities for the agenda to inform the design of more efficie nt practice s in different R4 components, while in Bangladesh, WFP is piloting insurance programmes and re silie nce building. Key areas the introduction of flood index insurance. In Cuba and Mali, a include identifying the conditions that enable R4 participants microinsurance dry run and feasibility studies are being planned to transition into full payme nt of pre miums in cash, testing the for 2020. In Guatemala, a feasibility study and project design effe cts of the time liness of insurance payouts, and assessing were conducted in 2019, which looked into the possibility of the effe ctiveness of coupling risk reduction activitie s with linking microinsurance to the country’s homegrown school insurance. WFP plans to inve st more on the se re search areas in feeding programme. As a result of this study, WFP and partners the upcoming ye ars, starting in 2020. are currently in the process of designing a new microinsurance product accessible for smallholder farmers and potentially other WFP will also continue to strengthen its collaboration with the vulnerable households. In El Salvador, WFP is planning to start International Fund for Agricultural Development (IFAD)through implementing an integrated risk management approach, which the Insurance for Rural Resilience and Economic Development includes the development of a microinsurance product and (INSURED) programme, the Platform for Agricultural Risk the promotion of family-level reserves (family and community Management (PARM), the Weather Risk Management Facility savings). A microinsurance dry run is to be conducted in 2020. (WRMF), and the Adaptation for Smallholder Agriculture Finally, in Uganda, a microinsurance feasibility study is being Programme II (ASAP 2). Through these platforms and planned in 2020. programmes, WFP supports IFAD initiatives aimed at reducing smallholder farmers’ vulnerability to weather and other WFP’s vision is to expand the R4 initiative to reach a total of agricultural risks, building capacity to manage risks, strengthening 500,000 insured farmers in 12 countries by 2022. The objective livelihoods, and increasing resilience. By engaging with IFAD in is to show that the model can be implemented at scale, while selected countries, WFP is able to introduce the R4 integrated documenting the benefits of early payouts and of investments risk management model to higher income farmers and more in risk reduction while identifying the factors that can lead to productive areas, thereby creating the conditions for the increased demand for commercial insurance services.
COVID-19 Impacts on R4 in 2020 The preparation of this 2019 Annual Report has coincided with the onset of the COVID-19 Pandemic and its subsequent spread to the countries where R4 currently operates. It is too early to understand the impacts the spread of the virus will have on the implementation of the R4 model, and more importantly, on the lives of the people and the economies of countries affected. WFP is preparing for potential impacts on the implementation of R4 due to the restriction of movements for people and goods. These may affect the targeting of participants, the distribution of insurance products and the ability to apply labour conditionality mechanisms to access insurance policies. Furthermore, degrading economic conditions will have implications on smallholders’ capacity to pay for insurance premiums. Due to these exceptional circumstances, WFP will assess country by country the possibility of unconditional access to insurance policies in affected communities. WFP is preparing risk mitigation strategies to continue delivering support to the most vulnerable households while ensuring the safety of its staff, partners and beneficiaries. WFP will periodically update its partners on these strategies, as well as the potential impacts of COVID-19 on operations.
66 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Annex 1. Metrics from the Field ETHIOPIA
$ Risk Reduction • 1,640 compost pits prepared by 820 FHHs for growing Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer vegetables and/or for rain-fed farming; R4 • 110 Roof Rain Water Harvesting (RWH) installe d for
$ 95 FHHs and 15 male heade d with disabilitie s. • 24, 189 farmers (10, 617 women)$ participate d in Prudent $ FFA activitie s. Risk Reserves Risk Taking Risk Reserves Risk Transfer Amhara • 1.75 Km of bench terrace constructe d; Tigray • 7.45 Km of hill side te rrace with trenche s constructed; • 39 Km of deep trench, 45 Km of trench bund and 24.5 Km • 2,625 trenches constructed; of stone -faced tre nch bund constructed on degraded • 142 m of Micro Basins constructed; communal lands; • 643 m3 of gabion che ck dam constructe d; • 84, 633 tre es planted on communal lands and agro-fore stry sites; • 1.2 Km of terraces maintaine d; • 13 Km of simple runoff /flood diversion canals constructed • 4.25 Km of hill side te rrace s constructed; by excavating 7, 614 m3 of soil to support 410 ha of land • 220 m3 of compost pre pared; with flood dive rsion dire ctly benefiting 1, 632 farme rs; • 84, 710 of pitting prepared and see dlings plante d. • 2,000 households prepared micro-garden, pe rma-garden and keyhole garde n on their home steads for growing
$ vegetables; $
Prudent Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer Risk Taking Risk Reducon Risk Reducon Risk Transfer R4 R4
$ $ $ $ $ Prudent $ Risk Reserves and Prudent $ Risk Reserves Risk Taking Prudent Risk Reserves Risk Taking Risk Reserves Risk Transfer Risk Transfer Risk Reserves RiskRisk Transf Takinger PrudentRisk Reducon Risk Taking Risk Reducon Risk Transfer R4
$ $ • 28,692 farmers (12,075 women) insured; • 9,150 farmers (3,671 women) participated in 404 saving Prudent $ Risk Reserves Risk Taking • 24,189 farmers (10,617 women) paid 25 percent of their groups; Risk Reserves Risk Transfer insurance premium in cash; • Total capital held by savings groups amounts to US$35,024 • 2,312 farmers paid their insurance fully in cash; (ETB1,128,131); • 2,016 farmers accessed insurance through the DFSA46 • Cumulative saving value from RUSACCOs amounts to programme; US$757,353 (ETB 24,394,345); • 175 farmers accessed insurance through the PASIDP47 • 946 farmers (71 women) accessed RLF loans worth programme; US$53,033 (ETB1,708,173). • Value of premium amounts to US$392,012; • Total sum insured amounts to US$2,514,317.
46. Development Food Security Activity (DFSA) is a USAID supported programme. 47. The Participatory Small-Scale Irrigation Development Programme (PASIDP) is an IFAD supported programme.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 67 SENEGAL
$ Kolda Prudent Risk Reduction • 190 ha of rice plots cultivated; Risk Taking Risk Reducon Risk Reducon Risk Transfer R4 • 50 ha of maize and 10 of cowpea plots cultivate d; • 2,000 ml of stones bunds rehabilitated; $ • 9,001 farmers (3,061 women)$ participated in FFA activities; • 36 bunds in frame establishe d; Prudent $ • 6,001 farmers in TambacoundaRisk Reserves andRisk 3,000 Taking farmers in Kolda. • 190 ha plowed for rice cultivation; Risk Reserves Risk Transfer • 3 ha of village wood established; Tambacounda • 2 market garde ning establishe d in two schools with • 119 ha of rice plots managed; cantee ns; • 73 ha of maize/sorghum cultivate d; • 246 farmers (235 wome n) traine d on Intensive • 50, 000 trees planted; Rice System; • 200 fruit plants achieved; • 305 farmers (269 wome n) traine d in technical market • 5 village woods establishe d; gardening; • 10 composting boxes established; • 277 farmers (256 wome n) trained in composting; • 10, 000 ml of consolidate d stone bunds; • Training of community re lays on monitoring and re porting • 5,000 ml of stones bunds constructe d; delive re d to 10 participants (1 woman). • 126 farmers (91 women) trained on maintenance and manage me nt of dike s and bunds; • 224 farm ers (158 women) trained on Intensive Rice System; • 122 farmers (82 women) trained on composting and phosphates techniques;
$ • 154 farme rs (102 wome n) trained in agroforestry technique s.
Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ • Total cash contributions amount to US$32,672; $ Risk Transfer Prudent Risk Reserves Risk Taking • Total cash contributions from full cash paying participants Risk Reserves Risk Transfer amount to US$6,6 88; • 8,206 farmers (3,988 women) insured; • 30 participants (14 women) trained by CNAAS on RFE • 533 farm ers paid their premium fully in cash; satellite index parameters and agricultural insurance • 7,673 farmers paid 24 percent of their premium in cash; management mandates; • Total sum insured amounts to US$2,056,176; • 26 participants (14 women) trained by Inclusive Guarantee • Premium amounts to US$271,625; on parameters of rainfall index and the agricultural insurance management mandates. $
Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ Risk Reserves $ and • 2,443 farmers (1,600 women) trained in Financial Education; Prudent $ Risk Reserves Risk Taking • 705 farm ers (511 women) trained in Gender Equality; Prudent Prudent Risk Taking Risk Reserves RiskRisk Transf Takinger Risk Reducon Risk Reducon Risk Transf• er470 farm ers (23 women) trained in Rural Entrepreneurship; R4 • 2,828 farmers (2,145 women) trained in Nutrition; $• 40 community mobilization events conducted in Kolda with • 11,646 farmers (9,467 women) participated in 748 savings$ $ Prudent 3,624 farmers (2,0 36 women); groups; Risk Reserves Risk Taking Risk Reserves Risk Transfer • Total capital held by saving groups amounts to U$143,340; • 10 financial education trainings delivered to 241 farmers • Total savings amounts to US$93,6 58; (201 women); • 8,788 farmers (7,792 women) accessed loans worth • 12 nutrition awareness events delivered to 251 farmers US$195,247; (186 women). • 7,618 farmers (3,432 women) trained in Mobile Money;
68 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 MALAWI
$ Risk Reduction B alaka Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer • 403.37 km of swales constructed; 3 R4 • 9,949 m of deep trenches constructed; • 10,676 m3 of check dams constructed; • 154, 435 farme rs (26, 928 wome n) e nrolle$ d in FFA $ • 45,407 of compost manure heaps prepared; Prudent $ activitie s in Balaka, Zomba,Risk Reserves Blantyre,Risk Taking Chikwawa, • 31,622 m of eyebrows constructed; Risk Reserves Risk Transfer Mangochi, and N sanje ; • 106,362 m of individual trenches constructed; • 18, 000 house holds accesse d we athe r and agro-climatic • 150.52 km of road rehabilitation conducted. advisories via 534 community radio liste ning hubs. Phalombe Bl antyre • 13,550 m of individual trenches constructed; • 293 km of swales constructed; • 20,650 m of eyebrows constructed; • 0.61 ha of sweet potato multiplication site created; • 5,580 m3 of gully controlled through check dams; • 0.41 ha of cassava multiplication site created; • 153,300 m of swales constructed; • 1,980 fruit trees planted. • 700 m of deep trench constructed; • Vetiver propagation conducted on 15.20 ha of land. Mangochi • 58,110 fruit trees seedlings raised; Zomba • 514 km of swales constructed; • 230 individual trenches constructed; • 14 vetiver nurseries established; • 577 m³ of check dams constructed; • 78 group vegetable gardens established; • 8 tree nurseries at community level established; • 19 sweet potato multiplication ce nters established. • 35,000 tree seedlings at community level raised; • 435 heaps of compost prepared; Chikwawa • 6 group of vegetable gardens established with • 5,863 m of eyebrow basin constructed; 60 participating households; • 10,568 m of individual trenches built; • 2,011 backyard gardens at household level managed; • 32,990 of assorted seedlings raised at community level; • 56 km of roads rehabilitated; • 12,448 m of swales constructed; • 16,000 trees planted; • 203 m of deep trench constructed; • 0.06 ha of banana suckers seed multiplication site • 1,000 of compost manure heaps prepared; established; • 7 potato sees multiplication sites established. • 0.3 ha of soya seed multiplication site established; • 0.2 ha of OFSP seed multiplication site established;
$ • 0.2 ha of cassava cuttings seed multiplication site
Prudent established. Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ Prudent • Total sum insure d amounts to US$5, 871, 590 $ Risk TransferRisk Re serves Risk Taking Risk Reserves Risk Transfer (MK4, 309,747, 159); • Pre mium amounts to US$679, 869 (MK 499, 023, 695); • 37, 891 farmers (26, 928 wome n) insured; • Total cash contributions amount to US$10, 047 • 4,171 farmers paid 14.33 percent of the ir insurance (MK7, 374,530). premium$ in cash; Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ Risk Reserves $ and • 13 apiculture clubs traine d in bee kee ping and honey $ Prudent Prudent Risk Reserves Risk Taking processing; Risk Taking PrudentRisk Reducon Risk Taking Risk Reducon Risk Transfer Risk Reserves Risk Transfer • IRM Orie ntation for Coope rating Partne rs and Gove rnment R4 staff conducte d; $ • 37, 857 farmers (29, 723 wome n) participated in $ • Trainings in enterprise se lection and business Prudent 1,666 saving groups;$ Risk Reserves Risk Taking manage me nt; gender and protection; community • Cumulative Riskvalue Reserves of savingRisk Transf amountser to US$559, 973 monitoring champion on fruit tree propagation and (MK 412, 699, 780); manage me nt; and community sensitization on Weather • Farmers acce sse d loans worth US$436,557 Index insurance parameters delivered to 245 farme rs (MK 321, 742, 540); (120 women). • Repaid loan amounts to US$240, 849 (MK 176, 783, 779); • 42 VSL community age nts (30 wome n) traine d on VSL methodology;
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 69 $
Prudent ZAMBIA Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ $ Risk Reduction Risk Transfer Prudent Prudent $ Risk Reserves Risk Taking Risk Reducon Risk Transfer Risk Taking Risk Reducon Risk Reserves Risk Transfer R4
$ • 18, 035 applied Conse rvation$ Agriculture (CA) on 9, 895 ha • 7,822 farmers (3, 907 wome n) insured; Prudent $ of land; Risk Reserves Risk Taking • Total sum insured amounts to US$466,962; Risk Reserves • RiskAverage Transfer land size under CA per farmers amounts to 1.17 ha; • Pre mium amounts to US$90, 282; • Total cash contribution amounts to US$4, 457; • 9, 279 farmers (5,934 wome n) attended trainings on • Payouts amounte d to US$452, 170 for 7,821 farmers. early warning syste ms, promotion of CA practices and CA refreshe r trainings; • 5, 934 (3, 056 wome n) traine d in CA to e nhance uptake
and$ adoption of CA practice s.
Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ $ • 321 farmers accessed loans from saving groups amounting $ Risk Reserves and Prudent Prudent Risk Reserves Risk Taking to US$6,3644 (ZMW 89,103); Risk Reserves RiskRisk Transf Takinger PrudentRisk Reducon Risk Taking Risk Reducon Risk Transfer R4 • 3,690 farmers accessed input credit;
• 402 saving groups, of which 298 are supervised with 6,369 $ • 5 workshops conducted on loan products, saving groups members (4,421 women); $ formalization, refresher savings training, insurance capacity $ Prudent Risk Reserves Risk Taking building, financial education, and improved farming • Cumulative valueRisk Re servesof savings Riskamounts Transfer to US$96,215 (ZMW1,347,019); • Average savings amount per farmer per month amounts to methods. US$17.5 (ZMW245);
$
Prudent KENYA Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ $ Risk Reduction Risk Transfer Prudent Prudent $ Risk Reserves Risk Taking Risk Reducon Risk Transfer Risk Taking Risk Reducon Risk Reserves Risk Transfer R4
• 8,862 (7,561 women) farmers participated$ in risk reduction • 8,862 farmers (7,561 women) insured for the 2019 $ activities Prudent Short Rains season; $ Risk Reserves Risk Taking Risk Reserves Risk Transfer • Payouts amount to US$128,323 (Ksh 12,832,348) for 5,612 farmers for the 2018 Short Rains season; • Total sum insured amounting to US$1,037,604 (Ksh 110,556,706); • Premium amounts to US$179,406 (Ksh 18,771,249).
70 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 ZIMBABWE
$ • 20 goats purchase d by the garde n beneficiarie s; Prudent Risk Reduction • The nursery group nurse d 1, 000 tree s in polythe ne bags Risk Taking Risk Reducon Risk Reducon Risk Transfer R4 and have sold 250 trees at an ave rage of ZWL35 to date . Soil and water conservation works $ • 1,999 farmers (1,288 women)$ enrolled in FFA activities. • 2000 m3 of compost heaps were constructe d through the Prudent $ Risk Reserves Risk Taking use of biodegradable/organic matte r; Risk Reserves Risk Transfer Disaster Risk Reduction and Asset Creation Activities • 300 hectare s of land was cleare d in order to improve • 3 nutritional gardens established (7 hectare s) for selecte d pastures; garden be neficiaries; • 600 hectare s of cultivated land we re managed and • One orchard establishe d and 500 fruit tree s planted conserved with physical soil and water conservation (avocadoe s, mangoes, lemon tre es, oranges and pe aches); measure s. • Water conveyance system for drinking wate r created in all 4 wards; Watershed Management Activities • 7 km of feeder roads (from the FFA site s to the main road that • 150 m³ of water harvesting systems constructed; le ads to markets) we re maintaine d. Works include d construction • 30 m³ of water retaine d by sand/sub-surface dams of culve rts, clearing of bushe s and drain construction; re habilitated; • 40 be ehives distribute d and installed in two wards; • 50 households engage d in construction of dead leve l • 4 poultry house s (indigenous and broiler 300 birds contours protecting 34 ha of land; capacity) were constructe d in two wards; • 100 ha of land protecte d using me chanical and biological • 2,000 m2 of new nurserie s established. 4, 000 tree measure s. 100 m³ volume s of check dams and gully seedlings are be ing produce d at nursery units which will re habilitation structures we re constructed; be sold to the surrounding communities and planted in • 2 m sandbag dam wall constructed. the orchards; • One bore hole for household, agriculture and livestock use Promotion of Appropriate Seeds an d Agricultural Practices established; • 1,020 kg of Compound D, 100 kg of PAN 53, 10 kg SC 513, • Two livestock drinking troughs for livestock watering 10 kg of Mama MQ 623, 10 kg ZS 242, 10 kg of ZM 309, established; 10 kg of PGS 63, 30 kg of ground nuts, 130 kg of cowpe as, • 4 double squats hole latrines toilets were constructed in 3 wards; 10 kg of finger millet, 340 kg of white sorghum, 10 lite rs • 2 infie ld 5, 000-lite r water tanks for irrigation/ livestock/ of glyphosate, 200 ripper tines, 4 strings, 3 bicycles dome stic use installed; distributed to farmers in Chebvute ; • 40 meters of concrete water re servoir constructed; • 192 kg of Compound D, 20 kg of white sorghum, 10 kg of • 35 m of masonry dam was re habilitate d and an additional cowpe as, 10 kg of pearl millet, 20 kg of mucuna, 19 rain step measuring 1 m was added. gauge s, 10 lite rs of glyphosate, 10 ripper tines, 6 strings, 3 knapsacks distribute d to farme rs in Mwenezi; Income generating activities • 210 farmers (142 wome n) re ceive d me chanization tools in • Garden be neficiaries raised an income of ZWL22, 000 Chebvute and 10 farmers (5 women) in Mwenezi; throughout the year from the sale of chicke ns and • 210 farmers (142 wome n) traine d in mechanized vegetables such as tomatoe s, gree n peppe r, onions, conservation agriculture and appropriate see ds in
$ carrots, kale and gree n pe pper; Chebvute$ and 10 farmers (5 wome n) in Mwe nezi.
Prudent Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer Risk Taking Risk Reducon Risk Reducon Risk Transfer R4 R4
$ $ $ $ Prudent Prudent $ Risk TransferRisk Reserves Risk Taking $ Risk Reserves Risk Reserves Risk Taking Risk Reserves Risk Transfer Risk Reserves Risk Transfer
• 1,652 farmers (1,097 women) insured; • 1,281 farmers (1,193 women) participated in 129 VSL • 158 farm ers (106 women) paid a percentage of their groups; insurance premium in cash; • Cumulative value of savings amounts to US$12,024 (RTGS$ • Total sum insured amounts to US$165,100; 108,312); • Premium amounts to US$27,597; • 361 farm ers (366 women) access ed loans worth • Cash contributions amount to US$355.50. RTGS$157,684, with a 100 percent repayment rate; • 151 farm ers (107 women) took out input loans worth ZWL40,159; • 6.502 MT of white sorghum from R4 farmers procured through the SAMS programme.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 71 $
Prudent BURKINA FASO Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ $ $ Risk Reduction Risk Transfer Prudent Prudent $ Risk Reserves Risk Taking Risk Reducon Risk Transfer Risk Taking Risk Reducon Risk Reserves Risk Transfer R4
$ • 500 farme rs trained on Post-Harvest$ Losse s (PHL) • 702 farmers (373 wome n) insure d; Prudent $ management in the EastRisk Re Reserves gion; Risk Taking • Sum insured amounts to US$91,627; Risk Reserves • Risk202 Transf farmeer rs trained on Post-Harvest Losse s (PHL) • Value of pre miums amounts to US$10, 537. management in the N orth Region;
MOZAMBIQUE
$ Risk Reduction Prudent Risk Taking Risk Reducon Risk Reducon Risk Transfer R4
$ • 2, 600 farmers (1,813 wome$ n) enrolle d in risk re duction Prudent $ activitie s. Risk Reserves Risk Taking Risk Reserves Risk Transfer
72 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 8 January,8 Zimbabwe Harare, January, 30-31 Zimbabwe Harare, Harare, February, 5 Zimbabwe 12-13 February, Zimbabwe Harare, March, 21-22 Nairobi, Kenya March, 14 Lusaka, Zambia March, 25 Lusaka, Zambia March, 20 Kolda, Senegal March, Senegal Dakar, April, 24-26 Lusaka, Zambia Event Date & Location Expert Panel/Speakers/Attendants Stakeholders from Zimbabwe Ministries,Met Government NGOs, Department, Service Sector Private Academia, NGOs Governments, Agencies, UN SDC, French Embassy, USAID, Swedish Embassy SNV, SDC, WFP, USAID, Old Mutual, Blue Marble, CIMMYT Aquaculture, IFRC, RC societies in Africa, Met Offices,UN agencies, Governments. Stanley Ndhlovu Allan Mulando WFP, La Lumière, P2RS, CNAAS, Government Prefect Regional Oxfam, Oxfam WFP, Oneworld and PPCR staff, (Siamunza WFP Mwiinga) Presentation of the final proposal to the various stakeholders for the possible future implementation of the project. Focus approach on integratedto combine climate services and other interventions towards better management. resource water Presentation of R4 developments in country to key donors. Improve Coordination and Integration across to enhance impacts. partners event and learning Networking on Forecast Based Financing. and focus on increasedSimplify BRAVA design crop production, food and nutritionsecurity, promotion of good agricultural practicesleading to commercialization andentrepreneurship. Receipt Zambian Warehouse i)Enhancing the Agency (WRS) and aligning the Food Reserve System and,strategic plans to WRS, ii) Improving access to agricultural risk information in Zambia. for meso level stakeholders 2018 crop year of the Review R4 approach and index-based insurance Guide the process of objective screening of different gaps in climatepolicy instruments to determine change mainstreaming in those policy instruments Focus WFP Zimbabwe CO WFP of UNESCO and Government Flanders Zimbabwe CO WFP WFP Red Cross IFAD PARM WFP FAO for Pilot Programme Climate Resilience Organizer R4 is a fundamentalR4 of part the proposal submitted to the GCF Presenter Organizer Organizers Participant Provinding inputs based on R4 Experince in implemention of resilience work Providing lessons on support of Warehouse (WRS) Systems Receipt activities in Zambia Organizer Presentation of R4 approach and index-based insurance Participant R4 role R4 Event Name Event GCF Validation Workshop for WFP-Ministry of Environment, Water and Climate Proposal Technical Regional Workshop on Needs for Climate assessment for improved Services Resources Water in Management vulnerable regions to Southern Africa Multi-Donor Meeting FirstR4 Quarterly Meeting Dialogue Platform Based on Forecast Financing Building Resilience and Adding Value to Agriculture National workshop on Agriculture Risk Management Workshop to review year the crop Panel discussion on community-based approaches Developing Guidelines Climate for Screening Change in Sector Policies, Plans and Strategies
Annex 2. Rural Resilience Event Series
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 73 5-11 May, Zimbabwe Masvingo, 10 May, Zambia Lusaka, 15-16 May, Zimbabwe Masvingo, May, 21-23 Kolda, Senegal June, 26 Nairobi, Kenya August, 13-16 Zimbabwe September, 10-11 Zimbabwe September, 16-30 Zambia Event Date & Location Expert Panel/Speakers/Attendants WFP CO, FO and HQ Staff (OSZPR), Cooperating Partners, Agritex Officers MoA (FISP Cordinator), PULA, Insuarance association of Zambia, WFP WFP CO, FO, and RBJ staff, Service Met Agritex, Partners, R4 SDC USAID, Department, P2RS. CNAAS, Oxfam, ANCAR La Lumiere, Government of Kenya: Emmanuel of County Minister Kitui Kisangau, Livestock and WaterAgriculture, Management; Mr. Tom Dienya, Agricultural InsuranceKenya Programme; Mr. Tom Kinara, Kenya Livestock Insurance Program (KLIP); Mr. Paul Kimeu, National Drought Management Authority. WFP: Fabio Climate and Disaster RiskBedini, Reduction Programmes Unit; Shaun and Livelihoods Resilient Hughes, Nutrition Unit, CO Kenya; James and Resilient Livelihoods Kamunge, Nutrition Unit, CO Kenya; Partners: Rose Goslinga, Pula Advisors; Sarfraz APA Insurance. Shah, FO, Old WFP mutual, blue marble, SNV. CO, Agritex, Partners, R4 FO, CO, WFP SDC. Department, Service Met WFP IFAD, MoA, Training on multi-year, watershed-level FFA activities of WFP, Partners and Agritex Staff. Discussions on how to pilot yield and scale up area index insurance products. Forum for discussing major issues/challenges in the way forward. programme and plan the Implementation of R4 integrated rural resilience activities. from the R4 Resilience learned lessons Share programme and how it contributes towards Government’s priorities for climate resilience and the of risk management tools in Kenya. development on farmers improved index (based the Present to farmers. feedback) Forum for discussing major issues/challenges in the forward. and plan way the programme Inter-ministerial group on working index design. weather Focus WFP and Disaster Management Mitigation Unit and PULA WFP WFP Kenya WFP Old Mutual/ blue Marble WFP WFP Organizer Organizer Participant Organizer Organizer Organizer Co-organiser Organizer Lead technical discussant R4 role R4 Event Name Event Thinking Outside the box… the dam workshop. Enhancing resilience and advancing the humanitarian and development nexus by focusing on livelihoods and landscapes Discussion on piloting yield indexarea insurance R4 Zimbabwe Second Quarterly Meeting Annual Planning Workshop Dialogue on Climate in Risk Management Kenya: supporting vulnerable and food insecure households Yield through an Area Index Insurance in Kitui index InsuranceWeather Product testing and feedback meeting R4 Third Quarterly meeting index training Weather
Annex 2: Rural Resilience Event Series
74 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Annex 3. R4 Achievements Ethiopia 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Participants 200 1,300 13,000 19,407 20,465 24,143 28,577 29,127 31,942 29,300 28,692
Value US$2,500 US$27,000 US$215,000 US$265,686 US$282,169 US$253,687 US$275,557 US$420,929 US$372,285 US$354,649 US$392,012 of premiums
Sum insured US$10,200 US$73,000 US$940,000 US$1,343,820 US$1,238,567 US$1,294,699 US$1,501,098 US$2,508,437 US$2,307,808 US$2,139,979 US$2,514,317
Payouts - - US$17,000 US$318,911 US$27,138 US$34,187 US$364,094 US$3,529 US$88,014 US$7,576 US$86,983
Senegal 2014 2015 2016 2017 2018 2019
Participants 1,989 3,621 7,563 6,739 9,245 8,206
Value US$29,823 US$70,975 US$221,497 US$239,743 US$305,062 US$271,625 of premiums
Sum insured US$200,776 US$592,888 US$1,625,696 US$1,752,115 US$2,404,465 US$2,056,154
Payouts US$3,929 US$80,969 US$73,186 US$264,145 US$2,197 US$21,792
Malawi48 2015 2016 2017 2018 2019
Participants 500 2,342 10,327 36,969 37,891
Value US$5,351 US$41,864 US$191,582 US$685,105 US$679,869 of premiums
Sum insured US$39,285 US$281,290 US$994,061 US$3,806,479 US$5,871,590
Payouts US$3,341 - US$404,599 - -
Zambia 2015 2016 2017 2018 2019
Participants 499 2,835 3,835 7,821 7,822
Value US$9,568 US$85,996 US$114,743 US$130,677 US$90,282 of premiums
Sum insured US$77,158 US$508,799 US$723,970 US$769,562 US$466,962
Payouts - - US$175,025 US$452,170 -
Kenya 2017 2018 2019
Participants 5,715 9,485 8,862
Value US$155,430 US$211,968 US$179,406 of premiums
Sum insured US$826,481 US$1,127,489 US$1,037,604
Payouts US$631,772 US$128,323 -
Zimbabwe 2018 2019
Participants 500 1,651
Value US$7,795 US$27,597 of premiums
Sum insured US$50,000 US$165,100
Payouts - -
Burkina Faso 2019
Participants 702
Value US$10,537 of premiums
Sum insured US$91,627 Thinking Outside the box… the dam workshop. Enhancing resilience and advancing the humanitarian and development nexus by focusing on livelihoods and landscapes Discussion on piloting yield indexarea insurance R4 Zimbabwe Second Quarterly Meeting Annual Planning Workshop Dialogue on Climate in Risk Management Kenya: supporting vulnerable and food insecure households Yield through an Area Index Insurance in Kitui index InsuranceWeather Product testing and feedback meeting R4 Third Quarterly meeting index training Weather Payouts -
48. Potential payouts for Malawi, Zambia, and Zimbabwe for the 2019/20 season will only be determined in April 2020.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 75 Annex 4. Media Citations and Resources
• Business Post, African Farmers to Get $1.5 m Insurance Payouts In the News for Low Rainfall https://www.businesspost.ng/2018/05/10/ • Dzebo, A. International Environmental Agreements: african-farmers-to-get-1-5m-insurance-payouts-for-low-rainfall/ Politics, Law and Economics.https://link.springer.com/ (May 2018). article/10.1007%2Fs10784-019-09445-8 (June 2019). • The Nation, Chilima says relief food no answer to food • Insuresilience, Linking climate risk insurance with shock- insecurity http://mwnation.com/chilima-says-relief-food-no- responsive social protection.https://www.insuresilience.org/ answer-to-food-insecurity/ (May 2018). knowledge-hub/?select1=Report&submitted=false (April 2019). • Mbc, Govt reassures disaster victim supporthttp://www.mbc. • Monserrath Ximena Lascano Galarza. Resilience to food mw/index.php/news/lifestyle/item/6279-govt-reassures- insecurity: theory and empirical evidence from internatio- disaster-victim-support (May 2018). nal food assistance programmes in Malawi. http://scholar. google .com/scholar_url?url=https://ageconsearch.umn.edu/ • Malawi Voice, Chilima Appeals To Farmers To Insure The ir Agriculture record/289674/files/Monserrath%2520Xime na_Lascano%- Investment http: //www.malawivoice.com/chilima-appe als-to- 2520Galarza_Full_Paper_Monserrath_Lascano.pdf&hl=en&sa=X- farme rs-to-insure-their-agriculture- inve stme nt/ (May 2018). &d=9832114679387210127&scisig=AAGBfm1Be 9RSl0VGcXE9u3 • APAnews, African farme rs get $ 1.5m insurance payouts afte r low 1VDQ86TPN 2uQ&nossl=1&oi=scholaralrt&hist=XC4YLO0AAAA- rainfall http: //apanews.net/index.php/en/news/african-farme rs- J: 13162072457456639122:AAGBfm3iXl58iV0u_jgoWIjIfp5EXR4Yeg get-15m-insurance -payouts-afte r-low-rainfall (May 2018) ((June 2019). • AllAfrica, African Smallholder Farmers Get Insurance Payouts • Insuresilience, R4, A safety net program in Ethiopia: He lping of U.S. S 1.5 Million After Low Rainfallhttp://allafrica.com/ small-scale farme rs to reduce the impact of disaste rs and stories/201805090807.html (May 2018). incre ase production. https://www.insure silie nce .org/r4-a-safety- • NewStage, African Smallholder Farmers Get Insurance Payouts net-program-in-ethiopia-he lping-small-scale-farmers-to-re duce - of US$ 1.5 Million after Low Rainfallhttps://newstage.com. the-impact-of-disaste rs-and-increase -production/ (Mar. 2019). ng/2018/05/09/african-smallholder-farmers-get-insurance- • Insuresilience, The United N ation’s World Food Programme payouts-of-us-1-5-million-after-low-rainfall/ (Many 2018). scales up participation in the R4 Rural Re silie nce Initiative by • Business Standard, African small farmers get record $1.5 60 percent in 2018. https://www.insure silie nce .org/african- mn payout for drought-linked crop losses http://www. smallholder-farmers-get-insurance-payouts-of-us-1-5-million- business-standard.com/article/news-ians/african-small- after-low-rainfall/ (Jan. 2019). famers-get-record-1-5mn-payout-for-drought-linked-crop- • The Economist, In Africa, agricultural insurance often falls losses-118051000020_1.html (May 2018). on stony ground. https://www.economist.com/finance-and- • Office of The Vice President, Vice President calls for economics/2018/12/15/in-africa-agricultural-insurance-often- mainstreaming of resilience in project implementationhttp:// falls-on-stony-ground (December 2018). www.ovp.gov.mw/index.php/news-media/news-posts/ • Reinsurance N ews, Re insurance N ews, Climate Risk Insurance item/17-vice-president-calls-for-mainstreaming-of-resilience-in- Mechanism and social protection systems: mutually project-implementation (May 2018). re inforcing re silie nce for food insecure communities https:// • Insuresilience, African smallholder farmers get insurance www.insuresilience.org/climate-risk-insurance-mechanisms- payouts of US$ 1.5 million after low rainfallhttps://www. and-social-protection-systems-mutually-re inforcing-re silie nce - insuresilience.org/african-smallholder-farmers-get-insurance- for-food-insecure -communitie s/ (Septe mbe r 2018). payouts-of-us-1-5-million-after-low-rainfall/ (May 2018). • Re insurance N ews, African farmers receive pay-outs of $1.5mn • Rural21, Large Insurance pay-out for African farmers https:// following drought https://www.reinsurance ne.ws/african-farme rs- www.rural21.com/english/news/detail/article/large-insurance- rece ive-pay-outs-of-1-5mn-following-drought (May 2018). pay-out-for-african-farmers-00002808/ (May 2018). • AllAfrica, Ethiopia: WFO compe nsates Farme rs Affe cted By Crop • Adnkronos, African small farmers get record $1.5 mln payout Loss http://allafrica.com/storie s/201805150233.html (May 2018). for drought-linked crop losses http://www.adnkronos. • Journal du Cameroun, African farmers get $ 1.5m insurance payouts com/aki-en/security/2018/05/09/african-small-famers- after low rainfall https: //www.journalducame roun.com/e n/african- get-record-mln-payout-for-drought-linked-crop-losses_ farmers-get-1-5m-insurance-payouts-afte r-low-rainfall/ (May 2018). AAAvY8oZaN9AKpyIx2dIhK.html?refresh_ce (May 2018). • Africa Science News, African smallholder farmers get insurance • African Eye Report, African Smallholder Farmers Get $1.5 worth $ 1.5 m after low rainfallhttp://africasciencenews.org/ Million Insurance Package https://africaneyereport.com/ african-smallholder-farmers-get-insurance-worth-1-5-m-after- african-smallholder-farmers-get-1-5-million-insurance-package/ low-rainfall (May 2018). (May 2018).
76 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 • Africa.com, Farmers’ Club Concept is Fresh Air to the Village • CCAFS Report N o. 14 Copenhage n: CGIAR Research Program Economy http://m.africa.com/farmers-club-concept-is-fresh- on Climate Change , Agriculture and Food Se curity (CCAFS). air-to-the-village-economy/ (February 2018) Available online at: www.ccafs.cgiar.org. • Inte r Press Se rvice , Village Savings: Helping Farme rs Weathe r • The International Research Institute for Climate and Society. Climate Shocks http://www.ipsnews.net/2018/02/village -savings- Using Satellite Data to Improve Index Insurance (August 2014). helping-small-farme rs-weathe r-climate-shocks/ (Fe bruary 2018) • Zambia: Innovative Climate-Risk Solution Expands to Insure • AXA SA, How data science will help in re sponding to the next Farmers in Malawi and Zambia, AllAfrica (Septe mbe r 23, disaster http://www.publicnow.com/view/11AC9E1AC8F8999 2014) http://allafrica.com/storie s/201409231508.html. EBC96A5B18DFF24203CB7EF80. • Leaders at UN summit take ste ps to ensure food security • Devex, Early warning, early action: The innovations changing for 9 billion people by 2050, Medi For Fre edom (Se pte mber food crisis management https://www.devex.com/news/ 23, 2014) http://mediaforfreedom.com/readarticle. sponsore d/e arly-warning-early-action-the-innovations- php?AID=18583. changing-food-crisis-management-89461 (January 2017). • Innovative Climate -Risk Solution Expands to Insure • Ethical Corporation, The impact intrapraneurs: How Swiss Re Farmers in Malawi and Zambia, Insurance NewsN et and Oxfam joined force s to help African farme rs http://www. (September 23, 2014) http://insurancenewsne t. ethicalcorp.com/impact-intrapraneurs-how-swiss-re-and- com/oarticle/2014/09/24/innovativeclimate - risk- oxfam-joine d-forces-help-african-farme rs (Octobe r 2017). solution-expands-to-insure-farmers-in-malawi- • N ewsbusine ssEthiopia, Rockefeller Foundation Preside nt andzambia-a-559233.html#.VCKMC_l_uPt. Visits Ethiopia https://ne wbusinessethiopia.com/rockefeller- • Innovative Climate-Risk Solution Expands to Insure foundation-preside nt-visits-e thiopia/ (May 2017). Farmers In Malawi And Zambia, Thomson Re ute rs • The Times Group, Insurance : incentive for climate re silie nce Foundation (September 23, 2014) http: //www.trust.org/ http://www.times.mw/insurance -incentive-for-climate- item/20140923121822-aq1pc/. resilience/ (July 2017). • Adre inne K lasa and Adam Rober Gre en, “Africa’ s catalytic • Thomson Reuters Foundation N ews, It’s time to rethink the agricultural innovations”, This is Africa (July 30, 2013). future of global governance through games https://news. • Be cker-Birck, C., Crowe, J., Le e, J., & Jackson, S., “Re silie nce trust.org/item/20171128151141-dmc36/ (N ove mbe r 2017). in Action: Lessons from Public-Private Collaborations Around • Public Finance International, Can insurance he lp the poore st the World”, (July, 2013). cope with extreme weather? (May 2016) • World Bank, “Ethiopia - Using a social safety net to deliver • Diplomatic Courier, Ending Global Hunger Through Private Se ctor, disaster insurance to the poor: case study ”, (June, 2013). Civil Society and Governme nt Collaboration (Se ptember 2016). • Climate Change The New Economy (CC TNE), The Guardian and • Le Sole il, Lutte contre la pauvreté : Le proje t 4R financé par United Nations Environment Programme (UNEP),“ G8 Climate Oxfam et le Pam soulage les ménages (Se pte mbe r 2016). Change: The New Economy”, (June, 2013). • The Wire , UN Working to Tackle Havoc Wreaked by ‘ El N ino’ • United Nations Office for Disaste r Risk Reduction (UNISDR), and ‘ La N ina’ (July 2016). “From Shared Risk to Shared Value –The Business Case for Disaster Risk Reduction. Global Assessment Report on Disaster • The Huffington Post, Why Climate Matters to Us (July 2016). Risk Reduction” (May, 2013). • Voanews, World Bank: Natural Disasters Force 26M People • Disaster Risk Financing and Insurance Program (DRFIP), into Poverty Annually (N ovember 2016). Global Facility for Disaster Reduction and Recovery (GFDRR), • Africa Times, Zambia, Malawi farmers develop resilience to “Senegal: Disaster Risk Financing and Insurance Country Note” climate impacts (October 2016). (November, 2012). • UN Se cretary-Gene ral’s initiative aims to strengthen climate • Agence de Presse Sénégalaise, “Sénégal: Le projet R4 veut aider resilience of the world’s most vulne rable countries and people : les agriculteurs à faire face aux changements climatiques”, http://www.un.org /sustainable development/blog /2015/11/ un- AllAfrica (Nov. 13, 2012). secretary-gene rals-initiative-aims-to-strengthen-climateresilie nce - • Sénégal – Humanitaire, “Lancement au Sénégal d’une initiative of-the-worlds-most-vulnerable-countrie s-and-people/. de résilience rurale”, SousLeManguier (Nov. 14, 2012). • R4’s achievements on gende r were illustrated in a case study • “Sécurité alimentaire: L’assurance agricole pour réduire les in the World Bank , IFAD, FAO’s re port “Ge nder in Climate risques en zone rurale”, Le Soleil (Nov. 14, 2012). Smart Agriculture”. • Stephan Faris, “Seeds for Change ”, Time (Sept. 24, 2012). • Climate Change The N ew Economy (CC TN E), Green Awards, UN FCCC, “G7 Climate Change : The N e w Economy” (June , 2015). • Lisa Friedman, “Companies Begin to See Necessity a nd Profits in Adapting to Climate Change”, ClimateWire (July 11, 2012). • Greatrex H, Hanse n JW, Garvin S, Diro R, Blake ley S, Le Guen Rao KN , Osgood, DE. 2015. Scaling up inde x insurance for • Victoria Eastwood, “Insurance Helps Kenya’s Herders Protect smallholder farmers: Recent evide nce and insights. Against Drought”, CNN (June 18, 2012).
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 77 • Forum for Agri cultural Risk Management in Development • New England Cable News, “Oxfam Provides Farm Insurance in (FARMD), “Oxfam & WFP’s R4 Initiative Begins Expansion Africa” (Nov. 6, 2009). into Senegal, Fueled by Success in Ethiopia”, FARMD Member • James F. Smith, “World’s Poorest Farmers Now Offered Insur- Updates (June 5, 2012). ance”, The Boston Globe (Oct. 13, 2009). • David Satterthwaite, “Weather Insurance Builds Resilience for • Evan Lehmann, “Africa Experiments with Climate Insurance— Farmers”, Momentum (March 2012). for $5 a Year ”, The New York Times (Sept. 30, 2009). • Jim French, “Ethiopian Crop Insurance and the Secret Farm • “Swiss Re, Oxfam A merica, Rockefeller Foundation, and Colum- Bill”, Hutchnews (Dec. 22, 2011). This was also posted by: bia’s IRI Expand Joint Risk Initiative in Tigray, Ethiopia”, Swiss TreeHugger.com, All Voices: Local to Global News, and the Re press release (Sept. 25, 2009). World Food Programme. • The Guardian, “Climate Insurance: What Kind of Deal Can Be • David Bornstein, “News Flash: Pr ogress Happens”, The New Made in Copenhagen?” (July 24, 2009). York Times (Dec. 15, 2011). • Jeff Tollefson, “Insuring Against Climate ”, N ature (July 22, 2009). • Agnieszka Flak, “Games Wake People Up to Climate Change”, • Catherine Brahic, “An Insurance Plan for Climate Change Vic- Reuters (Dec. 2, 2011). tims”, New Scientist (July 1, 2009). • Laurie Goering, “Insurance Aims to Help Herders Avoid • Omer Re di, “Insurance Firm Sows See ds”, Addis Fortune ‘Downward Spiral’ from Drought”, AlertNet (Nov. 30, 2011). (June 14, 2009). • Lisa Jones Christensen, “Case Study: Swiss Re and Oxfam” • Newsweek, “Coping with Climate” (Dec. 29, 2008). Financial Times (Nov. 1, 2011). • DesMoinesRegister.com, “Crop Insurance Can Pay Off for Small African Farms” (Oct. 13, 2011). Academic journals and publications • Alertnet, “Scaling Up Innovative Climate Change Adaptation • Eze, E mmanuel et al. Feasible crop insurance indexes for drou- and Insurance Solutions in Senegal” (September 19, 2011). ght risk management in Northern Ethiopia. https://www.scien- • Global Washington blog, “Reform ing Aid: Transforming the cedirect.com/science/article/pii/S2212420919310143 (2019) World” (Sept. 8, 2011). • Jarzabkowsk i, P. Et al. Insurance for climate adaptation: Op- • Alertnet, Index Insurance in East Africa, a video produced by portunities and limitations. Rotterdam and Washington, DC. the International Research Institute for Climate and Society https://www.researchgate .net/publication/335321823_IN- (Sept. 2011). SURAN CE_FOR_CLIMATE_ADAPTATION _OPPORTU N ITIES_ • Reuters, “Swiss Re Joins Ethiopian Micro-Insurance Project” AN D_LIMITATION S (2019). (June 10, 2011). • Aheeyar, Mohamed & Silva, & Senaratna-Sellamuttu, & Aru- • Tina Rosenberg, “To Survive Famine, Will Work for Insurance”, lingam. Unpacking Barriers to Socially Inclusive Weather Index The New York Times (May 12, 2011). Insurance: Towards a Framework for Inclusion. Water. 11. 2235. • IRIN H umanitarian News and Analysis, “Ethiopia: Taking the https://www.researchgate.net/publication/336820592_Un- Disaster Out of Drought” (Nov. 24, 2010). packing_Barriers_to_Socially_Inclusive_Weather_Index_Insu- rance_Towards_a_Framework_for_Inclusion (2019). • “Global Insurance I ndustry Statement on Adapting to Climate Change in Developing Countries”, ClimateWise, in collaboration • N ephila Climate , Farme r-focuse d we ather index insurance to prote ct with the United Nations Environment Programme Finance Ini- the most vulne rable. Using risk transfe r to achieve climate change tiative, the Geneva Association, and the Munich Climate Insur- resilie nce . https://www.nephilaclimate .com/publications (2019). ance Initiative (MCII) (September 2010). • Munich Climate Insurance Initiative , Cre ating synergies betwe en • Evan Lehmann, “Supporters of Global Insurance Program Hope macro and micro level insurance. https: //www.insuresilie nce.org/ to Rebound After Dreary Copenhagen Summit,” ClimateWire wp-content/uploads/2019/03/4th-Discussion-Pape r-Cre ating-syner- (Aug. 4, 2010). gie s-betwee n-macro-and-micro-level-insurance _Final.pdf (2019) • MicroRisk, “Swiss Re Climate-Linked Crop Insurance Takes Off ” • Insure silience, Linking climate risk insurance with shock-re- (July 2010). sponsive social protection. https://www.insuresilie nce.org/ knowledge -hub/?sele ct1=Re port&submitte d=false (2019). • Deborah Kerby, “Climate Covered,” Green Futures (July 2010). • Insure silience Global Partnership. Applying a gender le ns to • Lloyd’s News and Features, “Microinsurance to Mitigate Cli- climate risk finance and insurance . https://www.insuresi- mate Change Impact” (June 4, 2010). lie nce .org/applying-a-gender/ (2018). • Anne Chetaille and Damien Lagrandré, “L’Assurance Indicielle, • Munich Climate Insurance Initiative , Integrating insurance into cli- Une Réponse Face aux Risques Climatiques?” Inter-réseaux mate risk management: Conce ptual Framework, Tools and Guiding Développement rural (March 31, 2010). Questions: Examples from the Agricultural Se ctor. Re port no. 24. • Pablo Suarez and Joanne Linnerooth-Bayer, “Micro-Insurance United N ations Unive rsity.UN U-EHS. https://reliefweb.int/re port/ for Local Adaptation”, Wiley Interdisciplinar y Reviews: Climate world/inte grating-insurance-climate-risk-management-concep- Change (March 12, 2010). tual-framework-tools-and-guiding (2018).
78 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 • D. Osgood, B. Powell, R. Diro, C. Farah, M. Enenkel, M.E. • OECD Food and Agricultural Reviews Agricultural Policies in Brown, G. Husak, S.L. Blake ley, L. Hoffman, J.L. McCarty, the Philippine s https://books.google .it/books?id=E6-gDgA Farme r Perce ption, Re colle ction, and Re mote Se nsing in AQBAJ&pg=PA195&dq=R4+rural+re silience +initiative &hl=i Weathe r Index Insurance : An Ethiopia Case Study. MDPI, t&sa=X&ve d=0ahUK EwjbseullbDTAhUCuxQK HSsXAZg4ChD Re mote Se ns. 10, 1887. https://www.mdpi.com/2072- oAQhMMAU#v=onepage &q=R4%20rural%20resilie nce%20 4292/10/12/1887 (2018). initiative&f=false (2017). • Climate Risk Management, Policy and Gove rnance . Loss • OECD, Climate Change Adaptation and Financial Prote ction: and Damage from Climate Change . Insurance as a Re sponse Synthesis of Findings from Colombia and Se negal http:// to Loss and Damage? https://link.springer.com/content/ www.oe cd-ilibrary.org/docse rver/download/0b3dc22a-en. pdf/10.1007%2F978-3-319-72026-5.pdf (2018). pdf?expire s=1492676761&id=id&accname =guest&checksum • Microinsurance N etwork, The State of Microinsurace . Achie- =7B78DD8BE4BB9D6DBD1953ABE02F3AAF (2017). ving zero hunge r through inte grated climate risk manage- • Prabhu Pingali, Ge rshon Fe der, ‘ ’Agriculture and Rural ment https: //microinsurancenetwork.org/sites/default/file s/ Developme nt in a Globalizing World: challenge s and SoM_2018_WEB_final.pdf (2018). opportunities’ ’ (2017). • Wageningen Center for Deve lopme nt Innovation, Income • The Ge neva Association, The Stakeholde r Landscape in Ex- Inte rvention Quick Scan: Crop Insurance https://www. treme Events and Climate Risk Manageme nt https: //www. wur.nl/en/Publication-details.htm?publicationId=publica- ge ne vaassociation.org/sites/de fault/files/rese arch-topics- tion-way-353431353635 (2018). docume nt-type/pdf_public//stake holder-landscape-in-e ecr. • Sustainable Deve lopme nt Policy Institute, Risk Manage- pdf (2017). ment Practice s of Small Farme rs: A Feasibility Study For • The State of Microinsurance , Microinsurance Introducing R4 Rural Resilience Initiative in Punjab https:// Solutions to Addre ss Climate Change http://www. think-asia.org/bitstre am/handle/11540/8149/Risk-Manage- microinsurance ne twork.org/site s/de fault/file s/State %20 ment-Practice s-of-Small-Farme rs.pdf?seque nce =1 (2018). of%20Microinsurance%202017_Microinsurance %20 • World Bank Group, Private Sector Solutions to Helping Smal- N etwork.pdf#page=32 (2017). lholde rs Succee d: Social Enterprise Busine ss Models in the • UN CLIMATE RESILIENCE IN ITIATIVE, Anticipate, Absorb, Agriculture Sector https://ope nknowle dge.worldbank.org/ Re shape: Curre nt Progre ss On Three Key Capacities For handle/10986/29543 (2018). Climate Resilie nce http: //wedocs.une p.org/bitstre am/ • ACRI+, Risk transfer and insurance for disaster risk manage- handle/20.500.11822/20875/AnticipateAbsorbReshape _Cli- ment: evide nce and lessons learne d https: //www.unisdr. mate Resilience.pdf?seque nce =1 (2017). org/files/globalplatform/591d4f658e046Risk_transfer_and_ • Unbreakable: Building the Resilience of the Poor in the Face insurance_for_disaste r_risk_management_e vide nce_and_ of N atural Disaste rs https://books.google .it/books?id=yN m le ssons_learned.pdf (2017). bDQAAQBAJ&pg=PT255&dq=R4+rural+resilie nce +initiative • CCAFS, Prospects for scaling up the contribution of index &hl=it&sa=X&ve d=0ahUK EwiRiMH7mLDTAhUGtxQKHabdA4 insurance to smallholde r adaptation to climate risk https:// 0Q6AEIXDAH#v=onepage &q=R4%20rural%20resilie nce %20 cgspace .cgiar.org/bitstre am/handle/10568/80946/In- initiative&f=false (2017). foN ote%20formatted%20May%204%20FIN AL%20FOR%20 • Unive rsity of Passau and GIZ, Do public works programme s POSTIN G.pdf?seque nce =1&isAllowe d=y (2017). work? http://www.wiwi.uni-passau.de /fileadmin/doku- • CGIAR, 10 be st bet innovations for adaptation in agriculture : mente/le hrstuehle/grimm/Publik ationen/PW-Evide nce Re- A supplement to the UN FCCC N AP Technical Guidelines view_2017-11-07.pdf (2017). https://cgspace.cgiar.org/bitstream/handle /10568/89192/ • USDA, ‘Progre ss and Challenges in Global Food Se curity’ CCAFSWP215.pdf?seque nce =3&isAllowe d=y (2017). https://www.e rs.usda.gov/we bdocs/publications/84526/ • CGIAR, Climate service s and insurance : scaling cli- eib-175.pdf?v=42944 (July 2017). mate smart agriculture https://cgspace .cgiar.org/ • Zambia Daily Mail, Unsung heroes of rural re silie nce https:// bitstream/handle /10568/81377/Ag4Dev30_5. www.daily-mail.co.zm/unsung-heroes-of-rural-resilience/ pdf?seque nce=1&isAllowe d=y (2017). (2017). • Global Governa nce Enterprises: Creating Multisector Collabora- • Ted London, ‘ ’The Base of the Pyramid Promise : Building tions https://books.google.it/books?id=eTduDQAAQBAJ&pg=P Businesse s with Impact and Scale’ ’, Stanford University Press T188&dq=R4+rural+resilience+initiative&hl=it&sa=X&ved=0ah (2016). UKEwj9h4KUlbDTAhXEWhQKHbv2AIQQ6AEILTAB#v=onepage& • Olaf We ber and Blair Fe ltmate, ‘ ’ Sustainable Bank ing: q=R4%20rural%20resilience%20initiative&f=false (2017). Managing the Social and Environme ntal Impact of Financial • FAO, Foste ring food purchase programmes in widespread institutions’ ’, Unive rsity of Toronto P re ss (2016). poverty contexts http://www.ipc-undp.org/pub/e ng/ • Albe rto Garrido et al, ‘ ’Agricultural Markets Instability: WP159_Foste ring_food_purchase _programme s_in_ Revisiting the Re cent Food Crises’ ’ (2016). widespread_pove rty_contexts.pdf (2017).
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 79 • Swenja Surminski andThomas Tanner, ‘’Realising the ‘Triple Dividend of Resilience’: A New Business Case for Disaster Risk Stories/BLOGS “Zimbabwe: Marching towards starvation” •Management’’ (2016). “Three solutions against climate change, simply explained. How to • OECD, ‘’Disaster Risk Financing A global survey of practices and tackle climate change?” challenges’’ (2015). “Weather insurance boosts the resilie nce of Malawian farmers” • Michael Bamberger, Jos Vaessen and Estelle Raimondo, ‘’Dealing With Complexity in Development Evaluation: A “4 simple steps to help familie s defeat drought in northern Practical Approach’’ (2015). Ethiopia” • Damon Coppola, ‘’Introduction to International Disaster “African smallholder farme rs get insurance payouts of US$1.5 Management’’ (2015). million after low rainfall” • OECD, ‘’Climate Resilience in Development Planning “Weather Insurance Boosts the Re silie nce of Malawian Farmers” Experiences in Colombia and Ethiopia’’, (2014). “Disaster Risk Re duction can prote ct smallholde r farmers, • Lisa Schipper et al, ‘’Community-Based Adaptation to Climate experts say” Change: Scaling it Up’’ (2014). “How savings group is transforming the lives of smallholder • Judith Rodin, ‘’The Resilience Dividend: Being Strong in a World farme rs in Zambia” Where Things Go Wrong’’ (2014). ’Crop insurance e ases burde n on farmers in southe rn K enya’ ’ • Gabriel Pons Cortès and Itziar Gómez Carrasco, ‘’First Line of ‘ ’From mode st savings, an e ntre prene urial spirit’ ’ Defence: Assessing the potential of local food reserves in the ‘ ’N e w Climate Data Transforms Insurance Projects in Africa’ ’ Sahel’’ (2013). ‘ ’WFP Mobilize s Grant From The Gre en Climate Fund To P rote ct • The Worldwatch Institute, ‘’State of the World 2012: Moving Farmers From Climate Change’ ’ Toward Sustainable Prosperity’’ (2012). ‘ ’Is insurance a climate cure-all? It’ s complicated.’’ • Erinch Sahan and Julia Fischer-Mackey, ‘’Making Markets ‘ ’How To Dodge A Drought’’ Empower the Poor’’ (2011). “Putting the missing “p” in public-private-partne rships: Lessons • Pablo Suarez and Jaanne Linnerooth-Bayer, “Insurance-Related from the R4 Rural Re silie nce Initiative” Instruments for Disaster Risk Reduction”, Global Assessment Report 2011, International Strategy for Disaster Risk Reduction “Dear G7 Leade rs: Insurance is hardly e nough. Trust us, we (October 2011). know from experie nce” • Joanne Linnerooth-Bayer et al., “Drought Insurance for “Ethiopian Farmers Get a Payout, Easing Effects of Drought” Subsistence Farmers in Malawi,” Natural Hazards Observer “With Insurance, Loans, and Confide nce , This Ethiopian Farme r 33, no. 5, Natural Hazards Center, University of Colorado (May Builds Her Resilience” 2009). “In N orthern Ethiopia, Weather Insurance Offers a Buffer • Molly E. Hellmuth, Daniel E. Osgood, Ulrich Hess, Anne Against Drought ” Moorhead, and Haresh Bhojwani, “Index Insurance and Climate “Weathe r Insurance Offe rs Ethiopian Farme rs Hope—De spite Drought” Risk: Prospects for Development and Disaster Management,” “Me dhin Reda’ s Be st Asset Is He r Own Hard Work” International Research Institute for Climate and Society (IRI), Columbia University (2009). “Ge bru K ahsay Re lies on Rain But Has the Se curity of Insurance” • Peter Hazell, Jamie Anderson, Niels Balzer, Andreas Hastrup Clemmensen, Ulrich Hess, and Francesco Rispoli, “Potential “Se las Samson Biru Face s Uncertainty with the Seasons” for Scale and Sustainability in Weather Index Insurance for Agriculture and Rural Livelihoods,” International Fund for Agricultural Development (IFAD) and World Food Programme (March 2010). Videos/multimedia • Marjorie Victor Brans, Million Tadesse, and Takeshi Takama, The R4 Rural Resilience Initiative in Senegal “Community-Based Solutions to the Climate Crisis in Ethiopia,” Africa’s Last Famine, a documentary co-produced by Oxfam Climate Change Adaptation and International Development: America and Link TV, featuring HARITA , Japan Making Development Cooperation More Effective R4: The Rural Resilience Initiative International Cooperation Agency (JICA) Research Institute (December 2010). A Tiny Seed and a Big Idea A New Tool for Tackling Poverty
80 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 • WFP, Oxfam America. Impact evaluation of the R4 Rural Photography Re silie nce Initiative in Se negal. Final Evaluation. Dalberg. Project photos are available upon request. See examples of https://www.google .com/url?sa=t&rct=j&q=&esrc=s&so photos used in the enclosed quarterly reports. urce=web&cd=1&cad=rja&uact=8&ved=2ahUK Ewiipc_q8 LroAhUiQ0EAHSHqA14QFjAAe gQIBRAB&url=https%3A %2F%2Fwww.oxfamamerica.org%2Fstatic%2Fmedia%2 Ffile s%2FWFP_Oxfam_R4_Final_Report_English_FIN AL. Evaluation and reviews pdf&usg=AOvVaw1uOR-u4xDzFUzHhl36tlF0 (2016). • WFP. De centralized Evaluation. Mid-Te rm Evaluation of Inte- • Oxfam America. Managing risks to agricultural live lihoods: im- grated Risk Management and Climate Services Programme in pact evaluation of the Harita programme in Tigray, Ethiopia, Malawi from 2017-2019. Final Evaluation Report: Volume I. 2009-2012. Malgosia Madajewicz, Center for Climate Systems Catherine Longley, Team Leader. Sithabiso Gandure, Interna- Rese arch, The Earth Institute , Columbia University. Asmelash tional Evaluator. Assa Maganga, N ational Evaluator. https:// Haile Tsegay, Fre elance Rese arch Consultant, Addis Ababa, www.wfp.org/publications/malawi-integrate d-risk-manage- Ethiopia. Michae l N orton, University of California at Davis ment-and-climate-services-2017-2019-evaluation (2019). https://www.google .com/url?sa=t&rct=j&q=&e src=s&source • SDC. R4 Rural Resilience Initiative in Southern Africa (Phase =web&cd=1&cad=rja&uact=8&ved=2ahUK Ewi4s9W98broAhX II). Midte rm Review 2019. Final Report. Deve lopment Solu- ODOwKHQ3fCxEQFjAAegQIAhAB&url=https%3A%2F%2Fwww. tions. (2019). oxfamame rica.org%2Fstatic%2Fme dia%2Ffile s%2FOxfam_ • Oxfam America. R4 Rural Re silience Program Evaluation in America_Impact_Evaluation_of_HARITA_2009-2012_English. Amhara Re gional State of Ethiopia. Impact Evaluation Report. pdf&usg=AOvVaw0NdRVvobohmBh-6yQncJqT (2013). Se gel Re se arch and Training Consulting P LC. Yime r Moham- med. www.se gelconsult.com/ (2018). • Oxfam America. Managing risks in smallholder agriculture. The impacts of R4 on livelihoods in Tigray, Ethiopia from 2012 to 2016. Malgosia Madajewicz, The Center for Climate Systems Research Columbia University. Asmelash Haile Tsegay, Free- lance Consultant Addis Ababa, Ethiopia. Ruiwen Lee, Columbia University https://www.oxfamamerica.org/explore/research- publications/managing-risks-in-smallholder-agriculture-the- impacts-of-r4-on-livelihoods-in-tigray-ethiopia/ (2017).
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 81 Annex 5. R4 Partners and Institutional Roles Our local/national partners in Ethiopia Our local/national partners in Senegal
• Africa Insurance Company. Private insure r in Ethiopia ope rating • Agence Nationale de Conseil Agricole et Rural ( ANC AR) in the Tigray, Amhara, and Oromiya regions. - National Agency for Rural and Agricultural Assistance. Te chnical agency affiliated with the Ministry of Agriculture . In • Dedebit Credit and Savings Institution ( DECSI). Second- Koussanar, it is responsible for le ading community awareness largest microfinance institution (MFI) in Ethiopia with and mobilization activities, and providing see ds as well as nearly comprehensive coverage of Tigray. N ame d by Forbes technical advice to farme rs. Like PAPIL and IN P (listed be low), magazine as one of the top 50 MFIs in the world. AN CAR is a key partne r for the Risk Re duction component. • Ethiopian Farmers’ Cooperative. Primary organizing body for • Agence Nationale pour l’Aviation C ivile et de la farmers in the community. Météorologie ( ANACIM) - National Meteoro logical and Civil • Ethiopian National Meteorological Agency ( NMA) . Agency Aviation Agency. AN ACIM helps with the de sign of insurance offering te chnical support in weathe r and climate data product(s) by providing historical and current climate data, analysis. and installing and maintaining weathe r stations. • Institute for Sustainable Development ( ISD) . Rese arch • Compagnie Nationale d’Assurance Agricole du Senegal organization dedicate d to sustainable farming practice s. ( CNAAS) - National Agricultural Insurance Company of Senegal. Sene gal’s only agricultural insurance company • Mekelle University. Member of the N ational Agricultural (public-private company founded in 2008 by the Rese arch System providing agronomic expe rtise and research. governme nt). It is the insurance provider for the product(s) • Organization for Rehabilitation and Development in Amhara offere d under the Risk Transfer component. ( ORDA) . Establishe d in 1984 with a focus on natural re source • Inclusive Guarantee Insurance broke r spe cializing in manage me nt, food security and agricultural developme nt in . microinsurance for deve lopme nt and pove rty reduction. Amhara. • International Research Institute for Climate and Society • Oromia Insurance Company ( OIC) . Private insurer in Ethiopia IRI is part of the Earth Institute of the Columbia operating in Amhara. ( IRI). University, conducting re se arch, e ducation, capacity • Relief Society of Tigray ( REST) . Local project manage r for building, and providing forecast and information products to HARITA, responsible for operating the Productive Safety unde rstand, anticipate, and manage the impacts of climate N et Program (PSNP ) in six districts of Tigray and overseeing change . As WFP’s te chnical partner, IRI supports WFP Se negal all re gional coordination. Establishe d in 1978. Working in index insurance product design. with Oxfam since 1984 on deve lopme nt issue s. Large st • La Lumière. A grass-root Sene galese N GO which provides nongove rnmental organization in Ethiopia (and one of the financial se rvice s to low-income rural households. It is the largest in Africa). curre nt implementation partne r for Oxfam’s Saving for • RIB Union. International broke rs offering reinsurance services Change program in Se negal, and the imple me ntation partner in Amhara. for the Risk Reserves compone nt. • Tigray Regional Food Security Coo rdination Office. Office • Ministere de L’Agriculture er de L’Equipement Rural (MAER) . with ove rsight of the PSN P in the pilot are a. Ministry of Agriculture and Rural Equipment. WFP’s partne r supporting implementation of the programme. • Tigray Cooperative Promotion Office.Office responsible for helping organize farme rs at the village level. • Programme multinational de renforcement de la resilience a l’insecurite alimentaire et nutritionelle au Sahel ( P2RS. • Willis Towers Watson. Leading global advisory, broking and solutions company. Multinational programme to build resilience to food and nutrition insecurity in The Sahel. P2RS is re sponsible for the organization and supervision of the Insurance for Assets (IFA) activities, which include building community and household leve l assets. • Université Gaston B erger. WFP’s academic partne r in Se negal.
82 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 • International Research Institute for Climate and Society (IRI). Our local/national partners in Malawi IRI is part of the Earth Institute of the Columbia University, conducting research, education, capacity building, and • CUMO Microfinance. A we ll-e stablished microfinance institution providing forecast and information products to understand, in Malawi with the widest rural outreach which se eks to improve anticipate, and manage the impacts of climate change. As low income e ntre pre neurs with acce ss to sustainable and WFP’s tec hnical partner, IRI supports WFP Malawi in index integrated financial services to unlock their pote ntial. Responsible insurance product design. for the de livery of the risk re serves and saving components of R4 and provides operational support on insurance . • Ministry of Agriculture (MOA). Re sponsible for agriculture policies and programs at national and local level. It supports • Department of Climate Change and Meteorological Services provision of extension services in the R4 project areas. (DCCMS). Mandated to provide reliable, responsive and high quality weather and climate services to meet national, regional • Ministry of Finance Economic Pla nning and Development and international obligations through timely dissemination (MoFEP&D). Oversees the National Social Support Policy of accurate and up to-date data and information for socio- that governs the establishment of sub-programs including economic development. Social Cash Transfer Scheme (SCTS), Public Works Programme (PWP), School Me als, Village Savings and Loans (VSL) and • Department of Disaster Management Affairs (DoDMA). An Microfinance. Strategic partner to e stablish technical and institution mandated to plan, coordinate and monitor disaster operational synergies with existing programs. risk reduction, pre paredness and re sponse activity in country. Provides overall strategic oversight and guidance for R4 in • NICO Insurance Company. Main insurance underwriter for Malawi and supports R4 implementation and coordination index-based insurance products in Malawi. through its local structures. • Plan International Malawi. Humanitarian organization working with children, youth and communities to address the structural • District Councils. Local governm ent administrative authorities responsible for the implementation of FFA in the district, which and root causes of poverty. includes activities like community mobilization and training, • United Purpos e (UP). Long term presence in the country distribution of project inputs, supervision and monitoring, as with a strong community-oriented approach, and experience well as liaising with other relevant District authorities. in agriculture and savings projects. Supports R4 with sensitization, targeting, registration, monitoring and • Emmanuel International Malawi. An international partnership of Christian and development organizations conducting relief implementation of DRR activities and provides supervision and and development projects. monitoring of R4 activities at district level. UoR is a public university located • Find your Feet Malawi. A local non-governmental organization • University of Reading (UoR). focused on agriculture, agri business and value chains, in Reading, supporting WFP with the implementation of the strengthening local governance systems and health as the climate services component. UoR trains government and NGO precursor for growth and rural livelihoods improvement. extension officers in Participatory Integrated Climate Services for Agriculture (PICSA), supporting Monitoring & Evaluation • Foundation for Irrigation and Sustainable Development process and building capacity of interpretation of historical (FISD). With expertise in irrigation and water development, climate data and seasonal forecast. FISD supports R4 with sensitization, targeting, registration, monitoring and implementation of DRR activities and provides • World Vision Malawi. Implementing relief, development and supervision and monitoring of R4 activities at district level. advocacy interventions in Malawi since 1982, World Vision operates in all 28 districts. They support R4 with sensitization, • Hannover Re. One of the largest reinsurance companies in the targeting, registration, monitoring and implementation of world, offering reinsurance services in Malawi. DRR activities and provides supervision and monitoring of R4 activities at district level. • Insurance Asso ciation of Malawi. An association of technical experts in the insurance. Approver of insurance products and manages insurance risk in the insurance market.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 83 Our local/national partners in Zambia Our local/national partners in Kenya
• Development Aid from People to People (DAPP). Key R4 • Caritas Kitui. Caritas works with sixteen partne rs across a implementation partner with a strong community-oriented wide portfolio of projects in wate r, food security, livelihoods approach, long-lasting presence in the country, and experience and disaster risk reduction, justice and pe ace, e nvironmental in agriculture and savings projects. Ensures collaboration manage me nt, promotion of renewable e nergy and alternative with Food and Agriculture Organization (FAO) and Ministry income generation. A key implementing partne r of R4, Caritas of Agriculture and Livestock (MAL) implementing the focuses on aware ness raising and mobilisation, subscribing to Conservation Agriculture Scaling Up (CASU) program. the insurance policy on behalf of the participants, seasonal • Disaster Management and Mitigation Unit ( DMMU) . The monitoring and claims settlement/communications in ce ntral planning, coordinating and monitoring institution for addition to its e ngagement in asset creation together with all Disaste r prevention, preparedness and response activity N DMA and county government. implementation in the country. Supports R4 imple me ntation • County Government of Kitui. In collaboration with NDMA, and coordination at national leve l through the Disaster county government officers play a vital contributory role in Management Consultative Forum (DMCF) and at local level index de sign, community sensitization, seasonal monitoring through the Office of the District Commissione r. and provision of extension se rvices. • Heifer International.A global non-profit working to e radicate • Kenya Agriculture Insurance Pool. Composed of seven poverty and hunger through sustainable, values-based insurers, the Pool unde rwrites risks in the name and for the holistic community deve lopment. account of all members and has the purpose of sharing the • Hannover Re. One of the largest re insurance companies in unde rwritte n risk betwe en all membe rs. R4 has e ngage d the world, offering re insurance services in Zambia. with the Pool through its lead insure r, APA Insurance , to • International Research Institute for Climate and Society ( IRI) .IRI provide insurance cove rage under the Kenya Agriculture is part of the Earth Institute of the Columbia University, conducting Insurance Program for the 2017 Short Rains. research, e ducation, capacity building, and providing fore cast and • Ministry of Agriculture, Livestock and Fisheri es ( MoALF) . information products to unde rstand, anticipate, and manage the Through interve ntions such as R4, WFP is committe d in impacts of climate change . As WFP’s technical partne r, IRI supports its support and e ngagement with the MoALF to improve WFP Zambia in index insurance product design. the live lihood of Ke nyans and e nsure food security • Ministry of Agriculture ( MoA) . WFP’s partner for through creation of an enabling e nvironment and ensuring implementation, providing extension services to farme rs. sustainable natural resource manage ment. • Mayfair Insurance Company Zambia. A General Insurance • National Dro ught Management Authority (NDMA) .An age ncy company re giste re d and lice nsed by the Pe nsions and of the Government of Ke nya, N DMA is mandated to e stablish Insurance Authority of Zambia and underwriter of the index- mechanisms which ensure that drought does not re sult in based insurance products for R4. e me rge ncies and that the impacts of climate change are • MTN Zambia. Mobile operator in Zambia facilitating the sufficiently mitigated. It is WFP’s principal partne r at the national ele ctronic distribution of insurance payouts. level, which coordinate s asset creation activities through a • Pula Advisors. Spe cialist advisory firm offering County Drought Coordinator and Asset Cre ation Coordinator in comprehe nsive risk analysis and assessme nt, quantifying e ach county in which WFP support asset creation. risks and developing mitigation and transfe r options like • Pula Advisors. Pula Advisors offer services in eight countries index-based insurance . Together with partners, the firm is across Africa and Asia, and in 2016 alone, facilitated crop conducting a dry run on Area-Yield insurance (AYII) in one and livestock insurance cover to 400,000 farmers in Kenya, district for the 2019/20 se ason. Rwanda, Uganda, Nigeria, Ethiopia and Malawi. As R4 Kenya’s • Vision Fund Zambia Limited ( VFZ). Zambia’s se cond largest technical service partner, Pula provides technical support in microfinance institution with the wide st rural outreach. VFZ index design, reinsurance/insurance arrangements, capacity offers cre dit, ope rational support on insurance and supports strengthening, seasonal monitoring and crop sampling. financial e ducation trainings as part of R4. • Zambia Meteorological Department ( ZMD) . The primary provide r of meteorological se rvices in Zambia, ZMD has office s in every Provincial capital and some districts, and is responsible for providing we athe r and climate information to the public and various se ctors of the economy. It is also the custodian of the official records of Zambian Weathe r and Climate , and collaborates with R4 on seasonal monitoring proce sses. • Zanaco. Zambia N ational Commercial Bank and banking re gulator supporting WFP through the Farmer to Market Alliance (FtMA), linking aggre gators to financial institutions.
84 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Our local/national partners in • Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement ( MLAWCRR) . One of the key ministries in the Zimbabwe Zimbabwean Government, the MLAWCRR collaborate s with • Aquaculture Zimbabwe ( AQZ) . Aquaculture Zimbabwe is WFP and the R4 initiative through several de partments. a local N GO with several years of experience across the The Department of Agricultural Technical and Extension country in livelihoods and asset cre ation proje cts. AQZ is the services ( Agritex), supports proje ct imple me ntation at the key partner for R4 on asset creation activitie s, focusing on local leve l, providing agronomical support to R4 participants the construction/rehabilitation of weirs/dams, watershe d for increase d crop and live stock production. The C limate manage me nt and soil and water conservation, establishme nt C hange Management Department plays an ove rsight of fishponds, and income ge nerating activities. role on the climate change governance archite cture and programming in Zimbabwe in line with the country’s • Blue Marble Microinsurance B lue Marble Microinsurance. N ational Climate Policy provisions. The Meteorological is a UK-incorporate d startup with a mission of providing Service Department provide s support on we athe r and socially impactful, commercially viable insurance prote ction climate information for farme rs in the proje ct are as, to the underse rved. Blue Marble incubates and imple me nts de livering rainfall and we ather information (including microinsurance ventures that support the e conomic advancement daily, 10 days and se asonal forecasts) and installing of underserved populations, work ing in collaboration with meteorological equipment, which will become part of local partners, such as Old Mutual in Zimbabwe . Its unique the national grid. In case of extreme we athe r events the business mode l brings together nine multinational insurance de partment also provides advisorie s and warnings. entitie s, including Africa-based Old Mutual Limited, that provide governance , talent and risk capacity. • Old Mutual Insurance Company Private Limited ( OMICO) . Old Mutual Limited is an African financial services group • An initiative aimed at bringing Foundations for Farming. that offe rs a broad spectrum of financial solutions to transformation to individuals, communitie s and nations customers across key markets in 17 countrie s. OMICO is through faithful and productive use of the land. the sole insurance provider for R4 in Zimbabwe , covering • International Centre for Maize and Wheat Improvement target food insecure communities with weathe r index (CIMMYT). CIMMYT is the global leader in publicly-funded insurance . maize and wheat research and related farming systems, with • The Netherlands Development Organisation ( SNV) . headquarters near Mexico City. CIMMYT is one of the founding In Zimbabwe, SN V provides market-based, sustainable and lead centers of the worldwide CGIAR partnership. solutions in Agriculture , Energy and Water, Sanitation & In Zimbabwe, CIMMYT has operated since 1985 and has Hygiene , paying particular atte ntion to ge nder equity, established extensive partnerships with national agriculture opportunities for youth and climate change. Within the R4 research and extension partners. Under the R4 project, Initiative , SN V is the leading actor in the establishme ntof CIMMYT in collaboration with AGRITEX, is implementing the Village Savings and Lending (VSL) groups, financial education appropriate seeds and agricultural practices component, for insurance , and foste ring access to markets. establishing demo plots with drought tolerant maize varieties and other drought-tolerant crops, and promoting mechanised conservation agriculture practices.
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 85 • InovAgro. SDC-funde d programme that uses a market Our local/national partners in systems approach. WFP is working with InovAgro partne rs in Burkina Faso Zampula and N ambezia provice s. • Inclusive Guarantee. Insurance broker spe cializing in • International Research Institute for Climate and Society microinsurance for deve lopme nt and pove rty reduction. ( IRI). IRI is part of the Earth Institute of the Columbia • Allianz Burkina. Burkina’s insurance branch of the Allianz University, conducting rese arch, education, capacity Africa and part of the Allianz Group, one of the world’s building, and providing forecast and information products leading insurers and asset managers. to understand, anticipate , and manage the impacts of climate change . As WFP’s te chnical partne r, IRI supports WFP Mozambique in index insurance product design.
• National Institute of Disaster Management (INGC) . IN GC Our local/national partners in manage s day-to-day matters re lating to disaste rs. This is an Mozambique autonomous institution under the Ministry of Foreign Affairs and Cooperation. • Aceagrarios. Smallholde r farme rs association supporting WFP with the implementation of the risk reduction compone nt. • Ministry of Agriculture and Food Securi ty ( MASA). MASA will support WFP with the implementation of R4’s • Adventist Development and Relief Agency ( ADRA). A risk reduction compone nt. MASA will provide training, global humanitarian organization working with people in demonstrations, and agricultural imple me nts in addition to poverty and distress to cre ate just and positive change . providing extension se rvice s to farmers. ADRA Mozambique is involved in e me rgency relief and community-based proje ct targeting food security, e conomic • Ministry of Land, Environment, and Rural Development deve lopment, primary health and basic e ducation. ( MITADER) . MITADER will support WFP and MASA with the implementation of R4’s risk re duction component • Blue Marble Microinsurance. Blue Marble Microinsurance is a UK-incorporate d startup with a mission of providing • University of Reading ( UoR) . UoR is a public university socially impactful, commercially viable insurance protection locate d in Re ading, supporting WFP with the imple me ntation to the underse rve d. As WFP’s te chnical partner, Blue Marble of the climate se rvice s component. UoR trains gove rnment is supporting WFP Mozambique with the design of the and N GO exte nsion officers in Participatory Integrate d prototype index insurance product and dry run in N ampula Climate Services for Agriculture (PICSA), supporting and Zambezia provinces. Monitoring & Evaluation process and building capacity of inte rpretation of historical climate data and se asonal • Mozambique National Meteorology Institute ( INAM) . INAM forecast. is part of the Ministry for Transportation and Communication (MTC). provides daily weather forecasts (twice a day) to the public and IN GC. The regional se asonal outlook is downscale d for Mozambique by IN AM and an interpretation is provide d to the differe nt users.
86 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 Annex 6. Donor contributions to R4
Donor Recipient Total contribution (US$) Countries Funding period
Swiss Agency for Development WFP 6,579,000 Malawi, Zambia (2014-2017) and Cooperation - SDC
France WFP 539,407 Senegal (2016-2017)
Swiss Re Oxfam America 1,250,000 Ethiopia, Senegal (2012–2016)
Margaret A. Cargill Foundation Oxfam America 5,000,000 Ethiopia, Senegal (2015-2016)
United States Agency for WFP 7,958,453 Senegal (2012–2015) International Development - USAID
USAID - iDIV Award WFP 500,000 Senegal (2014-2015)
Norway WFP 2,700,000 Senegal (2013–2014)
Rockefeller Foundation Oxfam America 599,000 Senegal (2012–2013)
Oxfam America Oxfam America 1,100,000 Ethiopia (2010–2013)
Swiss Agency for Development WFP 9,691,542 Malawi, Zambia, (2017-2021) and Cooperation - SDC Zimbabwe
Canadian International WFP 500,000 Kenya 2018 Development Agency - CIDA
France WFP 500,000 Senegal 2017
Oxfam America Oxfam America 1,273,833 Ethiopia, Senegal 2017
KfW WFP 20,000,000 Ethiopia (2018-2022)
Department for International WFP 5,000,000 Malawi 2018 Development- DFID
Flanders International WFP 2,750,000 Malawi (2017-2020) Cooperation Agency - FICA
Korea International Cooperation WFP 1,200,000 Zambia (2017-2020) Agency - KOICA
France WFP 250,000 Zimbabwe (2017-2018)
USAID WFP 146,666 Zimbabwe 2018
USAID WFP 3,800,000 Zimbabwe (2019-2021)
Swiss Agency for Development WFP 1,000,000 Zimbabwe 2019 and Cooperation - SDC
Swiss Agency for Development WFP 450,382 Mozambique (2019-2020) and Cooperation - SDC
Flanders International WFP 2,740,500 Mozambique (2019-2022) Cooperation Agency- FICA
Swedish International WFP 1,192,783 Ethiopia 2019 Development Cooperation Agency- SIDA
R 4 ANNUAL REPORT JANUARY - DECEMBER 2019 87 Annex 6. Donor contributions to R4
Donor Recipient Total contribution (US$) Countries Funding period
IFAD- ASAP 2 WFP 450,000 Kenya, Ethiopia, 2019 Zambia
Korea International Cooperation WFP 4,600,000 Bangladesh (2018-2021) Agency - KOICA49
Department for International WFP 12,976,200 Malawi (2019-2022) Development- DFID
USAID WFP 10,120,200 Malawi 2019
NORAD WFP 560,000 Malawi 2019
Green Climate Fund- GCF WFP 4,459,828 Zambia (2019-2025)
Swedish International WFP 4,860,000 Zambia (2018-2022) Development Agency (SIDA)
Forthcoming Donor Contributions
Green Climate Fund- GCF WFP 10,000,000 Senegal (2020-2024)
Green Climate Fund- GCF WFP 8,860,000 Zimbabwe (2020-2023)
Green Climate Fund- GCF WFP 9,250,000 Mozambique (2020-2025)
Adaptation Fund WFP 9,989,335 Malawi (2020-2024)
49. KOICA’s contribution is supporting both the insurance work and the ongoing Forecast-based Financing programme in the country.
88 R 4 ANNUAL REPORT JANUARY - DECEMBER 2019
R4 Rural Resilience Initiative ANNUAL REPORT JANUARY - DECEMBER 2019
www.wfp.org/r4 With support from
Risk Reducon Risk Transfer R4
$ $ Prudent Risk Reserves Risk Taking
Social Safety Net