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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Main Author:	World Bank
Format:	Policy Note
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	AGRICULTURE FINANCE AGRICULTURAL SHOCKS WEATHER RISK COMMODITY PRICES PEST INFESTATION RISK CROP DISEASE RISK AGRICULTURAL RISK FINANCE DISASTER RISK FINANCE SAFETY NETS STRATEGIC FOOD RESERVE DISASTER FUND CONTINGENT CREDIT AGRICULTURAL INSURANCE WEATHER DERIVATIVES SADC REGIONAL COOPERATION
Online Access:	http://documents.worldbank.org/curated/en/929401593062867051/Policy-Note-Agriculture-Risk-Financing-in-Southern-Africa http://hdl.handle.net/10986/34084

id	okr-10986-34084
recordtype	oai_dc
spelling	okr-10986-340842021-06-14T09:59:02Z Agriculture Risk Financing in Southern Africa World Bank AGRICULTURE FINANCE AGRICULTURAL SHOCKS WEATHER RISK COMMODITY PRICES PEST INFESTATION RISK CROP DISEASE RISK AGRICULTURAL RISK FINANCE DISASTER RISK FINANCE SAFETY NETS STRATEGIC FOOD RESERVE DISASTER FUND CONTINGENT CREDIT AGRICULTURAL INSURANCE WEATHER DERIVATIVES SADC REGIONAL COOPERATION 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. 2020-07-13T16:16:05Z 2020-07-13T16:16:05Z 2020-06-23 Policy Note http://documents.worldbank.org/curated/en/929401593062867051/Policy-Note-Agriculture-Risk-Financing-in-Southern-Africa http://hdl.handle.net/10986/34084 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note Africa Southern Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURE FINANCE AGRICULTURAL SHOCKS WEATHER RISK COMMODITY PRICES PEST INFESTATION RISK CROP DISEASE RISK AGRICULTURAL RISK FINANCE DISASTER RISK FINANCE SAFETY NETS STRATEGIC FOOD RESERVE DISASTER FUND CONTINGENT CREDIT AGRICULTURAL INSURANCE WEATHER DERIVATIVES SADC REGIONAL COOPERATION
spellingShingle	AGRICULTURE FINANCE AGRICULTURAL SHOCKS WEATHER RISK COMMODITY PRICES PEST INFESTATION RISK CROP DISEASE RISK AGRICULTURAL RISK FINANCE DISASTER RISK FINANCE SAFETY NETS STRATEGIC FOOD RESERVE DISASTER FUND CONTINGENT CREDIT AGRICULTURAL INSURANCE WEATHER DERIVATIVES SADC REGIONAL COOPERATION World Bank Agriculture Risk Financing in Southern Africa
geographic_facet	Africa Southern Africa
description	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.
format	Policy Note
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Agriculture Risk Financing in Southern Africa
title_short	Agriculture Risk Financing in Southern Africa
title_full	Agriculture Risk Financing in Southern Africa
title_fullStr	Agriculture Risk Financing in Southern Africa
title_full_unstemmed	Agriculture Risk Financing in Southern Africa
title_sort	agriculture risk financing in southern africa
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/929401593062867051/Policy-Note-Agriculture-Risk-Financing-in-Southern-Africa http://hdl.handle.net/10986/34084
_version_	1764480075546230784

Agriculture Risk Financing in Southern Africa

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