Agriculture Risk Financing in Southern Africa
This policy note is provided as an output under the World Bank’s Regional Advisory Service for Southern Africa, ‘Developing a Regional Risk Financing Framework for Agriculture and Food Security’. A key objective of this advisory service is to infor...
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| Format: | Policy Note |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/929401593062867051/Policy-Note-Agriculture-Risk-Financing-in-Southern-Africa http://hdl.handle.net/10986/34084 |
| Summary: | This policy note is provided as an
output under the World Bank’s Regional Advisory Service for
Southern Africa, ‘Developing a Regional Risk Financing
Framework for Agriculture and Food Security’. A key
objective of this advisory service is to inform the public
sector in Southern Africa on improvements to agriculture and
food security risk financing policies and programs. The note
is an output under component two of the project, which aims
to identify agriculture risk financing policy options. The
note aims to take stock of selected key financial risks
affecting the agriculture sector in the Southern Africa
Development Community (SADC) region and provide options to
build financial resilience. Weather risks, price volatility,
and pests and diseases are among the most important shocks
affecting agricultural producers in the region, frequently
with severe consequences for food security. This note gives
(i) an overview of their regional impact in terms of
economic and financial cost, as well as effects on food
security; (ii) describes the status quo of use of
agriculture risk financing instruments by countries in the
region; and (iii) derives policy recommendations to further
improve financial resilience to agricultural shocks using
agriculture risk financing instruments. It should be noted
that risk financing instruments are only one part of a
comprehensive agriculture risk management approach. Other
complementary agriculture risk management mechanisms and
approaches, such as the development of commodity exchanges,
agriculture trade policy, or warehouse receipt systems, are
not the focus of this note. |
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