THE Insurance Council of Zimbabwe (ICZ) is rolling out its agricultural insurance programme nationwide, targeting 50 000 smallholder farmers for the 2025/2026 season — a significant increase from the 20 400 currently registered, NewsDay Business can report.
The initiative builds on the success of the Agricultural Index Insurance Pilot launched in Goromonzi in 2023.
The pilot, a collaborative effort between the government, ICZ, the Insurance and Pensions Commission, the International Finance Corporation and other partners aimed to protect smallholder farmers from the financial impact of climate-related risks such as droughts and floods.
As part of the broader Agricultural Insurance Support Project, the pilot introduced an innovative index-based insurance product tailored to the needs of smallholder farmers.
Farmers paid a premium of US$15 each to enrol in the Farmer’s Basket Insurance Product, which combined weather-index and area yield-index insurance.
Agriculture is the backbone of Zimbabwe’s economy and a primary source of livelihood for millions.
ICZ chief executive officer Donald Muthe told NewsDay Business that the pilot’s success has paved the way for scaling up the programme, with plans to include livestock farmers in the expanded rollout.
“We successfully expanded to eight districts, excluding urban areas. From the initial ward in Goromonzi, we extended the programme to 68 wards for the 2024/2025 season, registering a total of 20 400 farmers,” he said.
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Muthe said the pilot provided valuable insights, which are being used to refine the programme for the upcoming season.
“As we move into the 2025/2026 season, we are engaging with farmers much earlier. Based on lessons learned and feedback from farmers, we are introducing improved products and a refined approach,” he said.
About 20 000 farmers signed up for the programme this season.
Muthe expressed confidence that the number would grow to at least 50 000 in the next season, with further annual increases as awareness of the benefits of agricultural insurance spreads.
One of the key lessons from the pilot, Muthe said, was the need to diversify insurance products.
“While we initially introduced a crop-based product, we discovered that farmers in Matabeleland and Masvingo also wanted a weather index product for livestock. As a result, we are now offering both livestock and crop products,” he said.
To ensure broader participation, the ICZ is working directly with district structures and extension officers, engaging farmers early and providing training.
“By being visible, answering questions, and building capacity, we can gradually build the necessary trust,” Muthe said. The ultimate goal, he noted, aligns with the Ministry of Agriculture’s vision of creating vibrant rural economies.
“We want to go beyond farming and enable farmers to establish small businesses and micro-enterprises within their districts. Such rural economies would significantly improve livelihoods and contribute to the country’s GDP,” Muthe said.
He acknowledged that insurance has traditionally been met with scepticism, a sentiment exacerbated during Zimbabwe’s hyperinflation era when life policies failed to meet their obligations.
“However, the key to overcoming this lies in awareness, engagement and capacity-building,” Muthe said.
