By Lydia Kukua Asamoah, GNA
Accra, Oct. 28, GNA – An insurance expert has called for increased investment in agricultural insurance, describing it as a critical tool for protecting farmers against climate-related risks, boosting food security and strengthening Ghana’s agricultural sector.
Mr Kwabena Akuamoah Agyekum, Executive Director of the Chartered Institute of Marketing Ghana (CIMG), said agricultural insurance offered protection for farmers, agribusinesses and livelihoods while reducing financial losses arising from adverse weather conditions and other farming risks.
He made the call during a two-day online engagement on agricultural insurance organised under the TEMBO Africa Project by the Ghana Insurance College (GIC) and the Ghana Agricultural Insurance Pool (GAIP).
The engagement, attended by insurance companies and brokers, was held on the theme: “Introduction to Agricultural Insurance in Ghana: An Overview of the Agricultural Insurance Value Chain.”
Mr Agyekum said smallholder farmers in Ghana continued to face challenges including drought, erratic rainfall patterns, excessive rainfall, flooding, pest infestations, crop diseases and market uncertainties.
“These climate pressures continue to affect yields, incomes and the ability of farmers to repay loans, while threatening national food security,” he said.
He noted that agriculture contributed about 21 per cent of Ghana’s Gross Domestic Product and employed approximately 35 per cent of the national workforce, making the protection of the sector a national priority.
According to him, agricultural insurance would help build resilience and confidence within the agricultural value chain and encourage increased investment in the sector.
He therefore urged farmers to place equal importance on protecting their farms through insurance as they did on increasing production.
“The growth of the farm and its protection should go hand in hand,” he stressed.
Mr Agyekum said agricultural insurance also benefited financial institutions by reducing credit risks, increasing agricultural lending and improving the quality of loan portfolios.
He said the successful implementation of agricultural insurance required collaboration among key stakeholders, including farmers, insurance companies, GAIP, financial institutions, government agencies, regulators and development partners.
Mr Agyekum identified low awareness, high transaction costs, inadequate climate and flood data, affordability concerns and low insurance penetration as some of the major challenges confronting the sector.
However, he said emerging technologies, including satellite monitoring, remote sensing, data analytics, mobile money platforms and public-private partnerships, presented significant opportunities for expanding agricultural insurance coverage in Ghana.
“Agricultural insurance serves as a critical tool for managing agricultural risks and protecting farmers’ livelihoods. As climate risks increase, it will become an increasingly important component of Ghana’s agricultural transformation agenda,” he said.
The TEMBO Africa Project is funded by the European Union and implemented in partnership with Delft University of Technology (TU Delft), the University for Development Studies, the Trans-African Hydro-Meteorological Observatory (TAHMO), the Ghana Meteorological Agency (GMet) and other institutions.
GNA
Edited by Benjamin Mensah
28 October 2026
Reporter: Lydia Kukua Asamoah