Covering the losses of farmers with a blockchain solution will now be possible in Africa. The idea that will be realized in East Africa, more specifically in Kenya, will allow small farmers to benefit from insurance against the ravages of climate change. The solution will be implemented through a collaboration between the decentralized insurance protocol Etherisc and the microinsurance company ACRE Africa.
Insurance coverage for 250,000 local smallholder farmers
Funded by the program Chainlink Community Grant, the project aims to launch a blockchain-based insurance platform. This should allowprovide coverage for around 250,000 smallholder farmers from the country. The beneficiaries of this insurance program have been identified as most exposed to the consequences of climate change. An insurance policy will thus be sent to them directly from the platform, which should be interactive. The financing of Chainlink Community Grant should also allow Etherisc to carry out certain technical developments within the framework of this project.
These include the establishment of a user-friendly front-end system with which farmers can interact and the development of smart contracts. Local payment systems should also be integrated into the platform for better use. Apart from the technical aspects, the funding should be used to study the economics of insurance for agricultural activities in Africa. Such an initiative would essentially aim to define a cover model taking into account local realities and beneficial to both parties bound by the insurance contract.
Implementing a more reliable insurance model using blockchain
Blockchain technology has already been associated with many innovations in both industries and commerce. It is particularly appreciated for having improved monitoring and control supply chains in the sectors mentioned. An ability to perfect activities that has also been recognized George kuria the CEO ofACRE Africa.
“We are pleased to be able to continue our work with farmers in East Africa by receiving support through the grant from Chainlink Community to help develop and implementing a more reliable and profitable crop insurance model with the collaboration of Etherisc », He declared.
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This initiative is a good illustration of the growing interest of African companies in the use of blockchain as part of improving their services. The fact that blockchain can provide better coverage to the most disadvantaged layers should only strengthen the idea that it can participate in the economic development of Africa.