BY SIBUSISO MNGADI
Farmers in Eswatini can now insure maize and beans against a range of weather and disaster-related risks under a new agricultural insurance product introduced by the Eswatini National Agricultural Union (ESNAU).
Promoted under the message “Protect your harvest with crop insurance,” the cover is packaged for smallholders, starting from E315 per farming cycle for a one-hectare maize or beans plot. ESNAU’s product information further reflects an annual premium set at 2.5% of total production costs, and the cover is currently structured for ESNAU members.
The insurance includes protection against storm, hailstorm, wind, frost, fire and lightning, earthquake, riot and strike, explosion, and malicious damage causing physical destruction of crops, among other risks. While the product references cover for “uncontrollable pests and diseases,” it explicitly excludes armyworm, fall armyworm and locust outbreaks.
“Insurance companies were shying away”
Speaking to Agribusiness Media, ESNAU Chief Executive Officer Tammy Dlamini linked the product to the growing reality of climate-related shocks, saying crop losses have become too frequent for farmers to absorb alone.
“So that’s why insurance companies were shying away from it, but because it’s now life experience. I can’t say it’s been easy, but it’s been quite practical to put up the product,” Dlamini said.
Structured with Asset Wise, underwritten by Lidwala
Dlamini said ESNAU worked with Asset Wise Insurance to structure the product, which is underwritten by Lidwala Insurance.
While the cover currently focuses on maize and beans, Dlamini said ESNAU is also looking at expanding coverage to other crops, including vegetables, as well as livestock. Farmers are encouraged to engage ESNAU on these possibilities as the union works with its partners to broaden the product across value chains.
Pricing will vary across commodities
Dlamini indicated that premiums will not be the same for every commodity, particularly as ESNAU explores additional value chains.
“It’s just that… the pricing for vegetables will become different because the cost of production,” he said.
Membership-first rollout
For now, ESNAU is prioritising its membership base as the product is introduced.
“Okay, at this stage, we are working with ESNAU members,” Dlamini said.
Dlamini added that the absence of agricultural insurance has also affected financing, as lenders and farmer development funds struggle to price risk when losses are unpredictable.
“Insurance… was impacting some of our development funds because it brings uncertainty when calculating interest rates [for] financial service providers… so we can work together going forward,” he said.
How farmers can access the cover
ESNAU members seeking to register or learn more are encouraged to contact the union directly:
- Contact line: +268 7867 6660
- Website: esnau.co.sz
