July 2016
From the editor

Dear RFILC members,

July is very productive month in the agriculture as it is the harvest month for many commodities, fruits and vegetables. It was very productive month for the RFILC team as well, as we are very keen to present you two recent reports from out partner institutions. First report published by German Development Cooperation (GIZ) “Innovations and Emerging Trends in Aricultural Insurance” imposes the question of “How can we transfer natural risks out of rural livelihooods to empower and protect people?”. Agricultural insurance has evolved considerably since the 1990s, towards insurance tied to named perils and index-based products. Index based insurance (IBI) is a promising innovation that might help scale up agricultural insurance to needed levels, as well as help underwrite many public relief programs. It also promises to be a useful bridge for increasing the engagement of private insurers in managing these risks, either directly or through various kinds of public-private or nonprofit-private partnerships. Yet despite many promising pilots, IBI has not yet taken off at scale. There are a number of challenges. This paper has reviewed some recent innovations that seek to overcome the challenges that hold back IBI, including problems of weak farmer demand, difficulties in developing appropriate indices and distribution networks, coping with climate change, insufficient public investments in necessary public goods, and first mover problems. There are a number of ways in which governments and donors can support the development of IBI, to find out the suggestions, click here.

Second highlight is the OECD-FAO Agricultural Outlook 2016-2025 report that provides an assessment of prospects for the coming decade of the national, regional and global agricultural commodity markets across 41 countries and 12 regions. The report highlights that for the sector to meet the expanding demand for food, feed and raw products for industrial uses, significant production growth is needed. This year’s special feature focuses on the prospects and challenges of the agricultural sector in Sub-Saharan Africa. The report provides comprehensive projections for agricultural production and demand for more than 20 agricultural commodities in this region. The region has to overcome the challenge of low productivity of agricultural resources in the face of rapid urbanisation, increased globalization, the impacts of climate change, changing diets and the need for creating employment opportunities. The Outlook identifies some strategic priorities for ensuring that the region can take advantage of the opportunities and face the challenges ahead to achieve sustainable agri-food systems.

Finally, Frankfurt School of Finance & Management has designed an exclusive international e-learning programme tailored to practitioners world-wide that will start September 1st, 2016. The 6-month certification course is adapted to part-time studies on side of a full-time work with flexibility to follow participants own schedule. The program delivers contents that help participants to immediately improve their daily job performance as well as the performance of their institution. The Certified Courses topics are: microfinance, Islamic microfinance, microinsureance, SME finance, risk management, climate and renewable energy finance and leadership in development finance. For more information and registration, click here.

With best regards,

The RFILC editorial team

We hope you enjoy your visit to the RFILC.

rfilc.org

The Rural Finance and Investment Learning Centre is a part of the CABFIN Partnership Project which aims to promote and facilitate capacity building in rural finance. The concerns of rural finance are to ensure that people living in rural areas have access to financial services such as deposit and money transfer facilities, insurance and loan products. Effective use of these services can help to improve livelihoods and reduce rural poverty. The following CABFIN Partners have provided financial support to the RFILC:

CABFIN PARTNERSHIP