MASERU – The Ministry of Agriculture, Food Security and Nutrition through the Smallholder Agriculture Development Project II (SADP II), has reviewed the implementation of the Smart Subsidy and Agriculture Insurance pilot conducted during the 2025/26 agricultural year.
The pilot sought to assess the feasibility of agricultural insurance as a tool to protect farmers against climate-related risks and determine whether insurance companies could develop and finance appropriate solutions for the agricultural sector.
Speaking at the workshop, Acting Deputy Principal Secretary in the Ministry of Agriculture, Food Security and Nutrition Mr. Thabo Sekhonyane, said agricultural insurance is increasingly important as farmers continued to face risks associated with climate change.
He said the agricultural sector is exposed to various risks, including drought, erratic rainfall, floods and livestock diseases, which could negatively affect farmers’ production and investment.
Mr. Sekhonyane said reliable data is critical in developing effective agricultural insurance products and informing government planning and policy decisions.
He said the findings of the pilot will assist the ministry in developing an agricultural insurance system that not only mitigates risks but also promotes investment, growth and long-term prosperity for farmers while contributing to food security.
Mr. Sekhonyane urged stakeholders to actively participate in discussions and share their observations, experiences and recommendations, saying these would be important in shaping future agricultural insurance policies.
Speaking on behalf of World Food Programme Country Director Dr. Nancy Chawawa said assessments conducted before the pilot identified Mohale’s Hoek, Mafeteng and Thaba- Tseka as areas heavily affected by drought.
She said the findings informed the decision to pilot agricultural insurance in the three districts.
Dr. Chawawa said stakeholder engagements were subsequently held to explain the project and its implementation to relevant stakeholders.
She called for continued collaboration among stakeholders to determine how agricultural insurance can be scaled up to ensure farmers are better protected against recurring climate shocks.
Director of Planning, Policy and Analysis in the Ministry of Agriculture, Food Security and Nutrition Mr. Mothobi Letooane, said agricultural insurance is not merely about numbers and data but about protecting livelihoods, ensuring food security and promoting stability in a sector highly exposed to natural and market-related risks.
He said agricultural insurance provides farmers with a safety net that will enable them to recover from unexpected losses, replant and continue investing in their households and agricultural activities.
Mr. Letooane said the workshop provides an opportunity to examine the pilot findings and extract lessons that could inform policy decisions, planning strategies and efforts to promote sustainable agricultural practices.
He stressed the importance of accurate and comprehensive data in understanding the impact of climate shocks on agricultural yields and assessing the effectiveness of insurance products.
Meanwhile, LNIG Hollard (INSURE) General Manager Mr. Kefuoe Ramokhele said the company has been part of the agricultural insurance initiative since its inception and viewed it as an opportunity to develop transformative insurance solutions for the country’s agricultural sector.
He said the pilot is not initially about designing an insurance product but about determining whether an agricultural insurance solution can work in Lesotho and address some of the climate risks faced by farmers.
Mr. Ramokhele said the study confirmed that climate change is no longer a future threat but a current reality, with farmers across the country vulnerable to drought, erratic rainfall, floods and livestock diseases.
He said the study also revealed limited awareness of agricultural insurance among farmers, but noted that acceptance increased once farmers understood how insurance could help mitigate their risks.
Mr .Ramokhele said the study further establish that Lesotho has reliable agricultural and weather data that could be used to design appropriate insurance solutions.
Mr .Ramokhele said the ultimate objective is to build a system that will enable farmers to plant with greater confidence, invest with greater certainty and recover more quickly from climate shocks.
He said the workshop will review the performance of the weather index insurance pilot, including how satellite rainfall data was used, how indices were calculated and the overall effectiveness of the pilot.
The workshop is also expected to consider the recommendations of the feasibility study, lessons learnt and challenges encountered, with a view to determining how agricultural insurance can be developed beyond the pilot phase.
Ends/ MAMAJ
