IFC recently convened partners and stakeholders at its Head Office in Addis Ababa for a capacity-building workshop on Agricultural Insurance and Area Yield Index Insurance (AYII). The training brought together representatives from Lersha, Nyala Insurance, Oromia Insurance, Abay Insurance, the Oromia and Sidama Bureaus of Agriculture, and the Ministry of Trade and Regional Integration. Their collective expertise and engagement highlighted the importance of multi-stakeholder collaboration in building a stronger agricultural finance and insurance ecosystem in Ethiopia.

The sessions were facilitated by IFC and KM Dastur (KMD), and co-organized with Lersha. IFC led discussions on the fundamentals of agricultural insurance, principles of index insurance, and tools for evaluating product quality, while KMD provided technical insights into AYII design, implementation, and claims management. Through interactive presentations and group discussions, participants deepened their understanding of how index-based solutions can reduce risks for smallholder farmers, expand financial inclusion, and enhance resilience against climate-related shocks.

Gabriella Sirak, Chief of Staff at Lersha, kicked off the session by emphasizing the organization’s initiatives to advance agricultural insurance, stressing its importance as a key instrument for managing farming risks, safeguarding farmers against weather-related losses, and easing access to finance for smallholder farmers.

Michael Tilahun Sinshaw, IFC Country Officer for Ethiopia, commended the engagement and reaffirmed IFC’s commitment to advancing innovative insurance solutions. He highlighted the importance of data quality, reliable indices, strong public-private collaboration, and continued capacity-building to ensure scalable, sustainable products that meet the needs of farmers.  

Looking ahead, IFC and GIIF will continue to work with insurers, government institutions, and farmer platforms to scale agricultural insurance solutions through funding support from the German Ministry of Economic Cooperation and Development (BMZ).  

By strengthening technical capacity, encouraging private-sector involvement, and advancing pilot programs, IFC aims to foster resilience, innovation, and food security for Ethiopia’s agricultural sector.