Piloting Parametric Agricultural Insurance and Credit Guarantee Schemes for Smallholder Farmers

Published on November 1, 2026
📍 Burundi · Africa
đź’ˇ Proof of concept

Burundi is developing agricultural insurance and credit guarantees to protect smallholder farmers from climate shocks and improve access to finance for more resilient farming.

Overview

Parametric insurance triggers rapid payouts when predefined climate thresholds, such as rainfall deficits, are reached. The project will pair this protection with credit guarantees that reduce lenders’ risks, helping farmers access loans for investments such as improved seeds and irrigation.

Technical support will design both instruments, outline the regulatory and institutional arrangements, and prepare a pilot strategy. The planned mechanism aims to extend credit and climate risk protection to around 5,000 smallholder farmers.

At a glance

Organisation

Inkinzo

Primary sector

Innovative Adaptation Financing

Innovation stage đź’ˇ Proof of concept
AFCIA Programme UN CTCN logo

Funding

$
AFCIA funding
USD 200,000–250,000
$
Additional public funding
USD 750,000
African Development Bank (AfDB)

Project team

Marcus Nield
Marcus Nield
Communication Expert
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