Feasibility Study on Climate Risk Insurance in Niger
Agriculture in Niger is hampered by the strong intra- and inter-annual variability in rainfall (i.e. recurrent droughts). This variability is a major contributing factor to the consistently low and fluctuating crop yields at both local and national levels. Despite these challenges, farmers from Niger continue with land cultivation and crop growth. On one hand, two-thirds of the country are desert and agriculture is rainfed. On the other, the rainy season is short and irregular, while the dry season is long and hot. Climate change further aggravates these limitations, with temperatures in the Sahel rising 1.5 times faster than the global average, bringing with it persistent droughts and devastating floods.
This study examines the growing impact of climate induced disaster on the agriculture sector in Niger and explores financial gaps that could feasibly be filled through climate risk insurance (CRI) solutions.
By shedding light on the intricate interplay between demand and supply, this study aims to inform the 'Climate Risk Insurance' Programming under UNCDF's ‘Climate Agenda’ about the state of climate and risk insurance in Niger, with the ultimate goal of enhancing resilience and adaptation in the face of an increasingly uncertain climate future through targeted CRI instruments.