@GirmaAmente – Ethiopian Business Review

Pula Advisors, an international insurtech company, in partnership with Oromia Insurance S.C. and other local partners, has provided agricultural insurance coverage to 700,000 smallholder farmers as of December 2024. Building on this success, the company aims to reach an additional 3 million farmers by the end of the current fiscal year. This scale-up effort brings together a consortium of local insurers, including Abay Insurance S.C., Africa Insurance S.C., Ethiopian Insurance Company (EIC), Nyala Insurance S.C., and Oromia Insurance S.C.

The announcement was made on Wednesday by Pula’s Ethiopia Country Director, Dagmawi Haileyesus, during the UNDP’s Financial Resilience in Agriculture (FRA) Community of Practice (CoP) 2025 high-level international forum, held at the United Nations Economic Commission for Africa (ECA) headquarters in Addis Ababa. The event brought together over 100 participants from 24 countries.

Held under the theme “Ethiopia’s Two-Decade Pilot Journey: Voices from Partners Implementing Agriculture Insurance”, the forum spotlighted Ethiopia’s evolving landscape in agricultural insurance, highlighting policy gaps, challenges, and future directions.

Solomon Zegeye, Director at Nyala Insurance, pointed out that premium affordability remains a major barrier, particularly for smallholder farmers. “Only large-scale producers can afford current rates,” he noted, adding that without strong policy intervention to enable premium financing, the scale-up of agricultural insurance will remain limited.

Other pressing issues include low awareness among smallholder farmers about the value of insurance, limited distribution channels in rural and remote areas, and the absence of robust policy frameworks to support the sector’s growth.

Also speaking at the forum, Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia (NBE), shared updates on regulatory reforms under way to address structural bottlenecks.

“We’re working on a new insurance proclamation that expands our mandate beyond supervision to include market development,” said Belay. “Inclusive insurance is broader than microinsurance. It targets unserved populations beyond just the poor.”

Belay added that a Microinsurance Directive is being also drafted to allow member-based institutions, such as cooperatives and community-based groups, to facilitate insurance delivery.

A key highlight of the event was the official launch of the Ethiopia Rural Finance Service Unit (RFSU) under the Ministry of Agriculture. The RFSU announced in the presence of Girma Amente (PhD), Minister of Agriculture and the State Minister of Agriculture, Sofia Kassa is set to play a central role in coordinating and scaling agricultural insurance efforts nationwide, with support from UNDP, JICA, and other development partners, through funding from the Bill & Melinda Gates Foundation.

“The revised Agricultural and Rural Development Policy places strong emphasis on improving access to financial credit for smallholder farmers,” said Dr. Girma. “The government’s focus on the sector has driven inclusive and climate-resilient economic reforms, boosting both production and productivity.”

Pula and its partner insurers are delivering Area Yield Index Insurance (AYII), a comprehensive coverage solution—through the Input Voucher System (IVS). This model links insurance directly to agricultural input purchases, leveraging the existing IVS infrastructure that reaches up to 7 million farmers, in collaboration with the Agricultural Transformation Institute (ATI).

“Pula has long anticipated the establishment of a platform like the RFSU, recognizing the sector’s need for greater coordination. With the RFSU now in place, we are well-positioned to scale our work nationally—with the potential to serve over 7 million farmers across Ethiopia.” said Dagmawi. He also added “We are confident that the RFSU will leverage key learnings from our program and help create an enabling environment that fosters better outcomes for smallholder farmers through expanded, well-coordinated agricultural insurance efforts.”

Pula operates in 20 countries globally, reaching a total of 20+ million farmers. The company entered Ethiopia in November 2022, following the Ministry of Agriculture’s pledge to work with stakeholders to deliver climate risk solutions for Ethiopian farmers and its delegation of responsibility to the Agricultural Transformation Institute (ATI), efforts began to design and pilot a scalable agricultural insurance model.

Ethiopia’s livestock and fisheries sector has made remarkable strides in recent years, with the National Livestock Development Program driving significant improvements. Among the most notable achievements, the country’s egg production has surged from 3.2 billion to 9.1 billion in just four years, demonstrating the effectiveness of targeted agricultural policies, as reported by Ministry of Agriculture.

The program, officially launched on November 03, 2022, by Prime Minister Abiy Ahmed (PhD) in Arba Minch, aims to ensure food security, enhance domestic livestock production, reduce imports, and boost foreign exchange earnings. Minister of Agriculture Girma Amente (PhD) highlighted these achievements during the inauguration of the National Multi-Purpose Dairy Development Training Center in Holeta, a facility backed by the World Bank to train 20,000 dairy technicians and expand farmer support services.

The rapid increase in egg production is part of broader sectoral growth. Cow milk production has risen from 5.8 billion to 10.3 billion liters, chicken meat production has expanded from 90,000 to 240,000 tons, and honey output has nearly doubled to 296,000 tons. The success of these initiatives has prompted a reassessment of future targets to sustain momentum.

A major driver behind this growth is Ethiopia’s expanding artificial insemination capacity, which has jumped from 500,000 to 3 million procedures in just two years, resulting in 1.7 million improved calves born in the last eight months alone. Additionally, eight new Liquid Nitrogen Centers are being established to ensure a stable supply for breeding programs.

The poultry sector has also seen significant advancements. Initially, Ethiopia distributed only 26 million one-day-old chicks annually. Following government intervention, this figure rose to 41 million, and with the establishment of the Grand Parent Stock Center by MIDROC Investment Group and the Ministry of Agriculture, the country now has the capacity to produce 100 million chicks per year. So far, 85 million chicks have been distributed in the past eight months, with plans to reach 150 million by year-end.

Other key developments include the introduction of 1,994 modern beehives and a shift toward fish farming in artificial ponds. Previously reliant on lakes and rivers, farmers now raise fish in controlled environments, with 7.6 million fish fingerlings distributed in just eight months.

The Ministry of Agriculture is prioritizing knowledge-driven development to sustain these gains. The Holeta-based training center will not only equip technicians but also empower model farmers and pastoralists, ensuring long-term growth in the sector. Research institutions and animal development centers are also being urged to collaborate with local communities to maximize impact.

The Ethiopian Coffee and Tea Authority, in collaboration with the Italian government and the Commercial Bank of Ethiopia, has announced a loan aimed at supporting Ethiopian coffee producers, suppliers, and stakeholders across the sector’s value chain, according to the Ministry of Agriculture.

The Italian government has approved a loan of 10 million euros (approximately 10.9 million USD) for the sector, with the Commercial Bank of Ethiopia responsible for administering the funds.

Minister of Agriculture Dr. Girma Amente stated that more than 5 million farmers and traders are involved in Ethiopia’s coffee production value chain. He highlighted that financial constraints remain a major challenge within the coffee sector, and the extended credit service from the Italian government is expected to significantly boost productivity.

He also pointed to the tangible improvements made over the past five years in increasing both coffee production and productivity, underlined by the Green Legacy Program, which has contributed to a rise in the country’s forest cover and the planting of billions of coffee seedlings.

Michael Mora, Director of the Italian Development Cooperation Agency, emphasized that the Italian government’s support reflects a commitment to the joint development efforts between the two nations. He noted that coffee is not only an economic asset for Ethiopia but also a key part of the nation’s identity.

Commercial Bank of Ethiopia President Abe Sano acknowledged the obstacles affecting the coffee sector, including market fluctuations and production challenges. He reaffirmed that Ethiopia has the potential to produce world-class coffee, and cooperation is key to strengthening the sector’s value chain.

Pula Advisors Eyes 3 Million Ethiopian Farmers Through its Local Insurance Partnerships

National Livestock Program Boosts Egg Production from 3.2 Billion to 9.1 Billion

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