In a world where smallholder farmers face numerous challenges, from unpredictable weather to limited access to financial protection, innovative solutions are crucial for their survival and success.
Pula, a pioneering insurtech company, has been at the forefront of providing agricultural insurance to these farmers, helping them build resilience against climate-related risks.
On Wednesday, Pula Foundation announced that it had secured a substantial grant to further its mission.
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Pula Foundation expands coverage with new funding
Based in Rwanda, Pula Foundation has received a €10 million grant from the Bayer Foundation. This grant is part of a broader initiative to enhance the resilience of smallholder farmers in the face of increasing climate-related disasters, such as droughts and floods.
The partnership aims to provide insurance coverage for 10 million smallholder farmers by 2030, focusing on countries like Bangladesh, Pakistan, Malawi, Ghana, Nigeria, Kenya, and Mali.
Rose Goslinga, Director of Pula Foundation, emphasises the importance of empowering farmers through insurance, “Climate resilience is not just about recovery but also about dignity and empowerment. We believe that insurance enables smallholder farmers to prepare themselves for an increasingly volatile climate rather than waiting for handouts. We have witnessed firsthand how farmers bounce back stronger after climate shocks when they have the right tools and support”.
“We believe this initiative will enable smallholder farmers to overcome climate shocks, empowering them to contribute to global food security,” said Matthias Berninger, EVP of Public Affairs, Sustainability, and Safety at Bayer.
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Pula’s insurance: significant gains for farmers
Pula’s approach involves integrating insurance into farm input costs or credit services, making it more accessible to remote farmers.
Farmers have increased farm investments by 16per cent, yields by 56per cent, and household savings by 170 percent thanks to this technique.
The company’s success is also reflected in its high renewal rate, with 80 per cent of farmer groups renewing their insurance policies annually.
With this new award, Pula will keep creating data-driven, scalable agricultural insurance products so that millions more farmers can protect their livelihoods and become more resilient to climate risks.