AFC Insurance’s Farmers Basket Scheme: A Lifeline for Farmers Facing Climate Shocks, With Plans for Major Expansion

AFC Insurance Managing Director Cuthbert Masukume has highlighted the success of the Farmers Basket Insurance Scheme, which is providing a crucial buffer for farmers grappling with climate shocks. With plans to expand its reach, the scheme has proven to be an essential safeguard for many farmers whose livelihoods are threatened by unpredictable weather patterns.

Launched by AFC Insurance in collaboration with the Insurance and Pensions Commission, and administered by the Insurance Council of Zimbabwe, the scheme initially began with a pilot program in Goromonzi in 2024. The pilot covered 4,014 farmers, with 1,800 making full premium payments. These farmers received payouts of US$65 each after facing crop failures due to adverse weather conditions. This initial success has paved the way for the scheme’s nationwide expansion.

“We see this as a game-changer and a key solution for mitigating the challenges brought by climate change,” Masukume said in an interview with NewsDay Business. “Climate variability continues to disrupt agriculture, and this initiative ensures that farmers have a financial buffer when disaster strikes.”

Following the pilot’s success, the program has rapidly grown to cover seven additional districts, including Buhera, Gokwe South, and Jerera, bringing the total number of farmers enrolled to over 20,000. The scheme has not only provided immediate relief to farmers but also encouraged resilience in the face of climate unpredictability.

Recognizing the broader needs of smallholder farmers, AFC Insurance is preparing to extend the coverage of the scheme. Starting in June 2025, the program will include livestock insurance, catering to the growing demands of farmers who rely not just on crops but also on cattle for their livelihoods.

“We understand that smallholder farmers, in addition to growing crops, also rely on livestock for their livelihoods,” Masukume explained. “That’s why we are extending cover to include cattle insurance, starting from the 2025–2026 season.”

The expansion doesn’t stop at livestock. In an effort to provide more comprehensive protection for farmers, the scheme will also introduce funeral and medical insurance. The new benefits include a funeral cash plan to assist with burial costs and a hospital cash plan that provides payouts for hospital stays exceeding two days.

“We are creating a comprehensive solution that addresses all the risks farmers face,” Masukume added. “Farming is not just about crops. It’s about livelihoods, families, and communities. Our goal is to provide holistic financial protection.”

For many smallholder farmers, the scheme has already made a significant impact. One local farmer shared their experience: “Insurance is important, especially this Farmers’ Basket Insurance. After last season’s drought, I thought I was finished, but the payout helped me recover. I was able to buy inputs and get back to farming. It really works.”

Agronomist Tendai Marozhe, who works closely with the program, emphasized that the payouts go beyond providing financial support. “The insurance scheme is not just a financial cushion — it’s a motivator,” Marozhe noted. “It enables farmers to reinvest in their farms and continue farming despite difficult conditions.”

With the program’s continued success, the Farmers Basket Insurance Scheme is poised to become an integral part of Zimbabwe’s agricultural landscape, offering vital protection to farmers against the unpredictable challenges of climate change. As AFC Insurance looks to expand the scheme further, the future of smallholder farming in the country is looking more secure.