Bangladesh Agricultural Disaster Tender

Project phasesPhase 99 01.11.2021 - 31.12.2028 Active Phase 1 15.05.2016 - 31.10.2021 Current phaseTopic - Agriculture and Food SecurityEconomy and EmploymentInsurance micro and meso levelFinancial inclusion global policy levelAgricultural policy and regulatory frameworks incl. trade Budget Current phaseSwiss budget CHF 9950000Swiss disbursement to date CHF 3376354Farmers will improve their productivity and resilience by gaining access to client-oriented and affordable agricultural insurance products. Insurance-cover will allow farmers to invest in higher-return activities access credit and to recover faster when affected by weather diseases and disasters. By building capacity of and facilitating coordination and linkages among key stakeholders inclusive insurance markets will be developed to eventually cater for several million farmers.BackgroundBangladesh lacks the institutional framework for inclusive insurance market development including the re-insurance capacity required for agricultural and disaster insurance. But the Government shows interest in insurance as an effective and cost-efficient instrument to enable farmers to invest in higher value crops and livestock and mitigate their high vulnerability thereby complementing social safety nets.The Bangladesh Agricultural and Disaster Insurance Programme BADIP aims at 1 unlocking the entrepreneurial potential of farmers through insurance and thus triggering income and employment effects 2 the emergence of an inclusive agricultural insurance market and 3 creating an enabling institutional and regulatory framework. The Programme will consist of modular components for the development of pro-poor social business models for crop livestock or other agriculture disaster insurance and for capacity building of public civil society and private insurance sector stakeholders.Currently SDC explores options for components among them possible contributions to the social business models of the Syngenta Foundation for Sustainable Agriculture SFSA on crop insurance and the Palli Karma-Sahayak Foundation PKSF on livestock insurance. These are both tested models and currently in inception respectively on-going with a modest outreach. The SDC contribution would support the insurance product development diversification and scale-up of affordable solutions to the poor. As premiums are not subsidised both social business models are scalable. Both models will lead due to the combination of insurance products with financial literacy agricultural extension and disaster risk reduction measures - to behavioural changes with farmers investing into higher yielding crops and livestock.The Programme will work through a Private-Public Development Partnership approach in order to achieve systemic changes towards inclusive insurance markets with sustainable benefits for the farmers. Aggregators such as seed suppliers buyers