Financing Climate Resilience for Malawi’s Smallholder Farmers

Financing Climate Resilience for Malawi’s Smallholder Farmers

In the wake of Cyclone Freddy's devastating impact on Malawi's smallholder farmers, the story of Jeya Nsinda stands as a testament to resilience and hope. Cyclone Freddy swept away not just crops but also the livelihoods of countless farmers, leaving them grappling with food shortages and financial struggles. Amidst this adversity, One Acre Fund, in collaboration with IFC, is making a significant difference by providing climate insurance to smallholder farmers in sub-Saharan Africa, offering a lifeline to those who depend on the land for their income.

This partnership is not just about insurance; it's a beacon of support and empowerment. By tailoring climate insurance products specifically to the needs of smallholder farmers, especially in low-income segments, One Acre Fund and IFC are fostering financial security, protecting against climate emergencies, and enhancing access to credit. Led by IFC Africa’s Inclusive Insurance Program, the program aims to connect at least five million smallholder farmers and MSMEs to climate insurance by 2025, paving the way for a more secure and sustainable agricultural future in Africa. 


“We were in the house sleeping. I grabbed my children and ran,” she said. “With Cyclone Freddy, a lot of people suffered. It led to food shortages and lack of money to buy provisions. The payments I received after the storm were lifesaving,” Nsinda said.



An important partnership announced at COP28 between the IFC and OneAcreFund to increase access to climate insurance in Africa.The partnership seeks to strengthen the resilience of 1.5 million smallholder farmers in Africa against the mounting challenges of climate change


- Sergio Pimienta, IFC's Regional Vice President for Africa



Smallholder farmers are the backbone of agriculture in Sub-Saharan Africa and are responsible for 80% of total production, yet they face ever-increasing challenges due to climatechange – from extreme weather to shifting rainfall patterns. 


Our partnership with One Acre Fund will help increase access to climate risk insurance and finance for smallholder farmers and support sustainable agriculture in the region through IFC’s Africa Inclusive Insurance Program, launched in 2022 as part of our efforts to support smallholder farmers in Africa by building their resilience against climate-related shocks”


- Aliou Maiga, IFC's Regional Director for West and Central Africa 



To read the full story and watch the interview with Jeya Nsinda, click HERE