Thursday, December 7

CBG, ARC Ltd Launch Parametric Insurance Policy To Mitigate Climate Change

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 By Staff Reporter

The road to fiscal inclusion takes a major leap particularly for Gambian farmers as the central bank of the Gambia in partnership with African Risk Capacity Limited yesterday launched Parametric Insurance Policies aimed at mitigating the impact climate change, a ground-breaking policy aimed at boosting financial access to producers and market agents to a more climate resilient economy.

Parametric insurance policies are most frequently implemented in developing countries as a risk control mechanism in agriculture targeting mainly low-income farmers.

The Deputy Governor of the Central Bank, Dr. Paul Mendy while delivering the launching statement on behalf of the governor of the bank, explained how the scheme would mitigate the devastating climate impact and improve income for low-income farmers in the region who bear the brunt of climate effects.

The scheme he noted will also boost the production level of the farmers in the country and the region as a whole.

Partnering with a specialized institution for the successful implementation of the scheme, is the African Risk Capacity Limited, a specialized agency of the African Union established in 2012 to assist member states improve their capacities to better plan, prepare, and respond to extreme weather events.

Addressing the forum that congregated stakeholders from different institutions including local authorities, and farmers, via video link, the Chief Executive Director of the agency Lesley Ndlovu called for stronger collaboration among member states to strengthen their disaster risk management systems to secure the livelihoods of vulnerable populations.

Mr. Ndlovu also seized the opportunity to extol The Gambia for its commitment in mitigating climate impact, while appealing to other member states to emulate the Gambia in order to build climate resilience for better agricultural productivity.

During the two-day synergy officials will identify stakeholders and other relevant actors to ensure successful implementation of the fiscal and climate resilience project.