Sanlam on the future of agriculture insurance penetration in Africa

Sanlam, a leading financial services group in Africa, is taking strides to enhance agriculture insurance penetration on the continent. In a recent interview with CNBC Africa, Vice-Chairman of Sanlam Pan-Africa, Junior Ngulube, delved into the challenges and opportunities in the agriculture insurance sector. Ngulube, who started his career in agriculture insurance, highlighted the increasing impact of climate change on the agricultural sector in Africa. Natural perils such as hail, flood, and drought are becoming more frequent and severe, posing a significant challenge to farmers and the insurance industry. Ngulube stressed the importance of private-public partnerships in addressing these challenges, citing examples from the US and Europe where such collaborations have been successful. Sanlam is actively involved in crop insurance in Africa, focusing on providing solutions for both large commercial farmers and subsistence farmers. Ngulube emphasized the need for innovative products and partnerships with governments to ensure that small-scale farmers have access to affordable insurance options. By subsidizing premiums and sharing administrative costs, governments can help make agricultural insurance more accessible to vulnerable farmers, ultimately contributing to food security and sustainable agriculture across the continent.