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IFC, Kosovo Ministry of Agriculture, Forestry and Rural Development Work Together to Develop Agri-insurance
Pristina, Kosovo, May 19, 2017—
IFC, a member of the World Bank Group, and the Ministry of Agriculture, Forestry and Rural Development (MAFRD) of the Republic of Kosovo, are working together to develop an agricultural insurance system in Kosovo to spur the development of the country's agriculture sector.
IFC will advise the Ministry on developing and implementing a transparent, sustainable, and financially viable agri-insurance system to improve competitiveness in increasingly integrated commodity markets. IFC will provide technical and legal support, including local expertise, and set up the framework necessary for efficient operation.
Accelerating growth and addressing rural poverty require policies and reforms to shift agriculture from subsistence farming to intensive, commercially oriented farming, growing higher-value niche products. Authorities have identified agri-insurance as a crucial area to make the sector more competitive, strengthen the enabling environment and increase technical skills to help mitigate risk. A good insurance system will also help increase confidence in agricultural lending, helping to boost productivity and profitability.
“Kosovo farmers have encountered severe losses caused by weather and agricultural risks such as disease and pests. IFC and the government of Kosovo will develop agriculture insurance to protect farmer’s livelihoods impacted by yield or quality losses, and increase access to finance in competitive sectors to help drive economic growth," said Minister of Agriculture and Rural Development, Memli Krasniqi. “This is the first time we are starting with the development and implementation of the agricultural production insurance system in the country. The government plans to subsidize agriculture insurance premiums to make it affordable for farmers to protect their growing agricultural businesses.”
The initiative is being spearheaded by the IFC Europe and Central Asia Agri-Finance Project, in partnership with the Austrian Ministry of Finance and the Hungarian Export-Import Bank.
“Agriculture is a major employer globally,” said Leah Soroka, IFC's Europe and Central Asia Agri-Finance Program Manager. “Agriculture insurance builds confidence for financial institutions to lend to agriculture, as the farmer has taken precautions to protect their business, so it’s an essential component in growing agri-business and strengthening the financial sector. IFC will provide the technical skills and training to create a strong enabling environment, robust data systems, and insurance products to protect the most profitable areas, and increase productivity and profitability in Kosovo.”
The IFC ECA Agri-Finance Project aims to increase access to finance for the agricultural sector in the Western Balkans, Ukraine, Central Asia, and Azerbaijan.
For more information about Ministry of Agriculture, Forestry and Rural Development of Republic of Kosovo, please visit:
http://www.mbpzhr-ks.net/
About Austrian Ministry of Finance
The ministry's external economic program supports the development and transition process in Southeast and East Europe. The program aims at promoting sustainable investments to support economic growth, create jobs, and improve the business environment. For more information, visit:
https://english.bmf.gv.at/
About Hungarian Export-Import Bank and the Hungarian Export Credit Insurance Company
Their objective is to serve Hungarian exporters through the provision of effective financing and insurance facilities. Acting as a tool for providing economic and policy incentives, their mission is to support Hungarian exporting enterprises in facilitating the retention of jobs, growing employment, and expanding Hungary’s export capacities. For more information, visit:
http://exim.hu/
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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