Leadway Assurance has urged African stakeholders to prioritize stronger and more affordable climate risk solutions to safeguard the continent’s food systems, which face escalating threats from climate change. The insurer made the call at the ninth edition of the Agriculture Summit Africa (ASA) 2026, hosted by Sterling Bank, where industry leaders discussed strategies to strengthen agricultural value chains. Ayoola Fatona, global head of Agricultural Risk Solutions at Leadway Assurance, emphasized that affordability and a trust deficit are major barriers to insurance adoption among smallholder farmers. He stated that partnerships are critical to making insurance accessible, particularly for those most vulnerable to climate-related risks.
Fatona highlighted Leadway’s efforts to address these challenges through collaborations that pre-finance insurance premiums, ensuring farmers are protected from the start of the planting season. In the 2025 wet season alone, these partnerships mobilized over $1.2 million to cover more than 400,000 farmers. However, he stressed that affordability alone is insufficient without trust, noting that rapid and consistent claim payouts are essential to building confidence. Smallholder farmers, who often lack financial buffers, face heightened vulnerability to climate shocks such as droughts and floods, while insurers grapple with operational hurdles in reaching remote and insecure areas.
To overcome these challenges, Leadway is leveraging technology like remote sensing to assess farms virtually, monitor practices, and maintain engagement where physical access is limited. This approach aims to improve risk assessment, expand coverage, and reduce costs associated with traditional on-ground evaluations. The insurer’s focus on climate risk management aligns with broader efforts to secure Africa’s food systems as the continent seeks to boost production, enhance food security, and strengthen intra-African trade. Industry stakeholders underscored that managing climate-related risks remains vital to protecting farmers, agribusinesses, and investments in the sector.
Leadway’s participation in ASA 2026 reflects its commitment to using insurance as a tool to shield agricultural investments and build resilience across the food value chain. The insurer’s initiatives highlight the growing recognition of climate risk as a critical factor in Africa’s agricultural sustainability. With climate change intensifying, the need for innovative solutions to protect livelihoods and ensure food security remains urgent, according to Fatona and industry experts. The success of these efforts will depend on sustained collaboration, technological innovation, and a focus on the needs of smallholder farmers, who form the backbone of Africa’s agricultural sector.