Malawian farmers to receive over MK 2.2 billion in crop insurance payout
LILONGWE – The United Nations World Food Programme (WFP), in partnership with the Ministry of Agriculture and the Adaptation Fund, has today commenced the distribution of MK 2.2 billion (approximately US$1.3 million) in insurance payouts to over 36,000 farming households in Malawi. These payouts aim to support farmers whose crops suffered damage due to climate-induced shocks during the 2023/2024 growing season.
Smallholder farmers in the Balaka, Machinga, Zomba, Mangochi, Phalombe, Blantyre, Chikwawa, and Nsanje districts whose maize, rice, and pigeon pea yields were significantly impacted by dry spells, will receive an insurance payout.
The Minister of Agriculture, Honourable Sam Dalitso Kawale MP, presided over the payout ceremony held at Nkwana Village in Chikwawa District. He was joined by WFP Deputy Country Director in Malawi, Simon Denhere, local authorities, and beneficiary farmers.
“Malawian farmers are the backbone of our economy, but they are also on the frontline facing climate shocks,” said Minister of Agriculture, Honourable Sam Dalitso Kawale MP. “Crop insurance provides a risk transfer mechanism offering financial security, among others, through compensation for crop losses, thus ensuring that farmers recover and continue farming despite facing these adverse conditions.”
The insurance payout claims provide direct financial support to smallholder farmers to help off-set losses resulting from weather-related challenges such as droughts and floods. This initiative is part of a broader resilience strategy aimed at building sustainable agricultural systems and supporting Malawi’s food security.
“As the climate crisis continues to intensify, smallholder farmers are bearing the brunt of its effects,” said WFP’s Deputy Country Director in Malawi, Simon Denhere. “This payout is not only critical in providing immediate relief, but it is also an important step towards building long-term resilience.”
WFP’s partnership with the Ministry of Agriculture in implementing weather-based insurance interventions in Malawi provides a safety net for farmers by protecting them from the financial consequences of poor harvests. This season’s payout is among the largest in recent years, underscoring the increased severity of climate-related challenges facing the agricultural sector in Malawi.
About WFP
The United Nations World Food Programme is the world’s largest humanitarian organization, saving lives in emergencies and using food assistance to build a pathway to peace, stability, and prosperity for people recovering from conflict, disasters, and the impact of climate change.
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About the Adaptation Fund
The Adaptation Fund finances projects and programmes that help vulnerable communities in developing countries adapt to climate change. Initiatives are based on country needs, views and priorities.
Since 2010, the Adaptation Fund has committed over 1.2 billion for climate change adaptation and resilience projects and programmes, including 176 concrete, localized projects in the most vulnerable communities of developing countries around the world with over 45 million total beneficiaries. It also pioneered Direct Access and Enhanced Direct Access, empowering countries to access funding and develop local projects directly through accredited national implementing entities.