Interest in weather risk cover is expanding rapidly among developing nations. It’s seen as a way they can protect against the extremes of weather they tend to suffer and the changes to climate brought on by global warming while also offering some security to farmers and guaranteeing that in times of drought food could be bought by claims payments. Taking the micro-finance approach to this means that these schemes should be sustainable and rather than just an easy way out, actually provide some security for the developing worlds industries. With the knowledge that cover is in place it’s hoped that local businesses and farmers will feel they can go about their business with a level of security not available before.
The latest interest appears to be coming from Nigeria, as evidenced by this article from the Guardian Nigeria on Saturday. Hopefully countries such as Nigeria will benefit from the World Bank’s recent deal in Malawi.