Addis Ababa, 26 March 2026 (Ministry of Agriculture), Ethiopia has officially launched the Knowledge to Action Accelerator Program (KAAP) at the National Executive Forum on Agricultural Risk and Insurance, bringing together government leaders, insurers, and development partners to strengthen rural resilience and financial inclusion.
The tripartite partnership between the Ministry of Agriculture, Ethiopia , the Association of Ethiopian Insurers (AEI), and The United Nations Development Programme (UNDP) aims to scale agricultural insurance nationwide and provide farmers with more reliable protection against climate and environmental risks.
Opening the forum, Sofia Kassa (PhD), State Minister of Agriculture, emphasized that agricultural insurance coverage in Ethiopia remains below 0.4%, leaving millions of farmers vulnerable to droughts, floods, and pests. She underscored the urgent need to expand insurance access so farmers can invest with confidence.
Sofia highlighted Ethiopiaโs ongoing initiatives, including the #National_Agricultural_Finance_Implementation_Roadmap (NAFIR) and the #Rural_Finance_Service_Unit (RFSU), which are designed to coordinate insurance efforts and bridge policy with practice. She called on insurers and stakeholders to extend their reach to underserved rural communities, ensuring inclusive and dependable solutions.
Yared Molla (PhD), President of the Association of Ethiopian Insurers (AEI), noted that agricultural insurance in Ethiopia has historically been fragmented and limited in scale. He described the forum as a milestone toward nationally coordinated risk management. Yared pointed to the RFSU as a dedicated mechanism to strengthen coordination, build technical capacity, and develop a national actuarial talent pipeline essential for sustainable growth.
Charu Bist, UNDP Deputy Resident Representative, stressed that insurance is more than risk transfer it is a tool for resilience, investment, and protection of vulnerable populations. She highlighted that annual losses from droughts, floods, pests, and other climate-related events cost Ethiopia an estimated 1โ1.5% of GDP. Expanding insurance access for smallholder farmers, who remain largely unprotected, is therefore critical.
Charu reaffirmed UNDPโs commitment to supporting KAAP and emphasized the importance of collaboration between government, insurers, and development partners.
In conclusion, the launch of KAAP marks a historic step in Ethiopiaโs agricultural risk management. By aligning policy, industry, and technical expertise, the program will help farmers manage risks, stabilize incomes, and strengthen rural livelihoods.
Reporter: Bahiru Setegne
Photographer: Yodit Endalew
