Strengthening farmers’ resilience to climate shocks through innovation

Farmers in developing countries are among the most vulnerable to the effects of climate change. Droughts, erratic rainfall and extreme weather events weaken their harvests and pose a long-term threat to their livelihoods. In this context, access to appropriate protection mechanisms is essential. In Senegal, Nbéwu NDIAYE, a farmer, chose to take out weather index-based insurance developed by IBISA, a Luxembourg-based InsurTech supported by the Business Partnership Facility (BPF). Her experience provides a clear illustration of the impact of this innovation, designed with local realities in mind.

Nbéwu NDIAYE now benefits from improved protection against climate risks thanks to parametric insurance developed by IBISA.

Unlike traditional models, this solution relies on the analysis of satellite data. In the event of drought or insufficient rainfall, payouts are triggered automatically, without the need for lengthy or complex procedures.

This system makes it possible to:

• anticipate climate risks more effectively;
• ensure fast and transparent compensation;
• remove certain financial and administrative barriers to insurance.

As a result, farmers are better equipped to cope with unexpected events and secure their activities.

The deployment of this solution in West Africa has been enabled with the support of the BPF. Through this initiative, Luxembourg Cooperation promotes partnerships between European companies and local stakeholders to develop sustainable solutions in partner countries.

In IBISA’s case, this support made it possible to test the approach in the field, adapt it to local needs, and support its rollout in the subregion, particularly in Senegal.

This approach fosters the development of economically viable models capable of generating a tangible, long-term impact. 

Today, this initiative is already helping to strengthen the resilience of thousands of farmers in West Africa. By providing a safety net against climate hazards, it enables them not only to better manage crises but also to plan for the future, invest and safeguard their livelihoods.

Discover Nbéwu NDIAYE’s story and the concrete impact of this solution:

The Business Partnership Facility is funded by the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade. It is implemented by LuxDev, the Luxembourg Development Cooperation Agency, in partnership with the Ministry of the Economy, the Chamber of Commerce and Luxinnovation.