By Cecilia Chiluba
Pula Advisors Zambia in partnership with BlueOrchard Finance Limited has committed US$248,400, in Premium Subsidy Support for the Pilot of the Livestock Hybrid Index Insurance Product, targeting 44,000 pastoralists across the country.
The initiative is aimed at protecting farmers from climate-related shocks and strengthening resilience in the livestock sector.
It will also support President Hakainde Hichilema’s directive to increase the national cattle population to 7.4 million by 2027 and advance the country’s ambitious US$1 billion beef exports target.
The funding was announced on Tuesday in Lusaka, during the signing of a Memorandum of Understanding (MoU) between the Ministry of Fisheries and Livestock and Pula Advisors Zambia, as well as the official launch of the Zambia Livestock Hybrid Index Insurance Pilot.
Speaking at the signing ceremony, Ministry of Fisheries and Livestock Permanent Secretary, Dr. Max M. Choombe said the premium subsidy support, demonstrates Government’s commitment to piloting and scaling up livestock insurance as a key risk management tool for farmers.
Dr. Choombe stated that the initiative comes at a critical time when livestock farmers and pastoralists are increasingly exposed to climate risks such as drought, heat stress, pasture degradation and unpredictable weather patterns.
“These shocks result in losses which undermine household incomes, limit investment in livestock enterprises, and weaken food security,” Dr. Choombe noted.
He said the Hybrid Index Insurance model will use objective environmental indicators such as rainfall and vegetation cover to trigger payouts when drought or pasture decline thresholds are met, ensuring transparency, efficiency and predictability for farmers.
The Permanent Secretary stressed that the Pilot is expected to enhance household-level risk protection, promote market confidence and investment, expand financial inclusion and strengthen private sector growth in the livestock value chain.
“This Livestock Hybrid Index Insurance Pilot is a product of collaborative engagement and shared vision among key stakeholders: Government, represented by the Ministry of Fisheries and Livestock and Pula Advisors, an agricultural insurance and technology firm with global and regional experience,” he said.
He expressed confidence in Pula Advisors’ experience in agricultural insurance, citing the firm’s involvement in crop insurance under the Farmer Input Support Programme (FISP), and hailed insurance partners for providing underwriting capacity, distribution networks and claims settlement systems.
Speaking earlier, Pula Advisors Southern Africa Commercial Director, Joyce Mlewa said the pilot, supported by development partner BlueOrchard, targets access to insurance for up to 44,000 pastoralists.
“Our Livestock Insurance solution is designed with pastoralist realities in mind. It blends asset protection and asset replacement—offering periodic payouts when grazing conditions deteriorate due to risks such as drought and pest infestation, while also responding to mortality arising from illness, disease, or accidents. In doing so, it helps farmers protect herd value and recover more quickly from shocks.”
Through this partnership, we aim to unlock insurance access to 44,000 pastoralists. These targets reflect our shared commitment to learning, adaptation, and responsible scale. Our ambition is to help build a stronger livestock ecosystem—one that is anchored on traceability, credible data, and timely response,” she said.
Ms. Mlewa commended Government for ongoing reforms in the sector, noting that initiatives such as the Zambia Beef Export Project and investments in animal health were creating the right platform for introducing value-adding solutions like livestock insurance in a responsible and sustainable way.
“Through our collaboration with government, local insurance partners, and development partners, we have supported the protection of the agricultural value chain by delivering crop insurance at national scale under flagship programmes such as the FISP and the Food Security Pack (FSP). These experiences have shown us that when insurance is embedded within public programmes, it plays a critical role,” Ms. Mlewa added.
