Africa is a rich and fertile continent, which has been an economic powerhouse in the past and may well be so again in the future. However, the economies of many African nations are more subject than they would like to the vagaries of the climate and other such uncontrollable factors. As Nigeria is currently all too well aware, the fluctuations of the global resources market can have a devastating effect upon African economies which are in hock to it. The problem is that many African nations, while advancing economically, are still unable to achieve prosperous self-sufficiency due to various factors, not least of which is the precariously climate-dependent nature of many small African businesses. However, new insurance initiatives aim to change all of that. Small, mobile drought insurance providers offer farmers the potential to protect their interests and to keep them economically afloat, offering greater stability and long-term prospects for small African business. It’s a tempting prospect, and one which offers hope to many otherwise struggling African agricultural enterprises. Little surprise, then, that the concept is starting to really expand throughout Africa.


Insurance Importance

There are a few problems facing new and small African business. Lack of capital is one - it’s a trueism that you need to have money in order to make money. Underdeveloped infrastructures - logistical and economical - do not help either. Risk is also one of the biggest problems for an up and coming African entrepreneur. Often due to the aforementioned capital issues, many African farmers and business people decide (or are forced) to forgo underpinning their businesses with precautionary measures, hoping that the business will make enough money to buy insurance etc before long. Sadly, the external forces to which all business are subject frequently come into play before the requisite measures can be put in place - and a horrible number of uninsured African businesses are unable to weather the storms of fate. Without insurance, a business has no chance of recovering from an economic cataclysm, meaning that it (and all who rely upon it) are frequently left destitute. With insurance, however, the cost of a disaster can be covered, shoring up the business and helping it to build back and up after a problematic time. For farmers in particular, this could be vital.

See more: http://www.ackcitynews.com/2016/06/mobile-drought-insurance-schemes-spread.html