Insurance is increasingly being recognized as a critical tool in helping farmers recover from financial losses, particularly in the livestock sector where climate and disease risks remain high.
For pastoral farmers, weather-related risks directly affect grazing land, making the vegetative index and pasture cover vital indicators for herd survival.
Livestock farmers are also exposed to recurring disease outbreaks such as foot-and-mouth disease, alongside climate-related challenges including drought, heat stress, pasture degradation and unpredictable weather patterns.
These shocks often result in significant losses that undermine household incomes, limit reinvestment in livestock enterprises and weaken national food security.
Given the livestock sector’s contribution to rural employment and Gross Domestic Product (GDP), protecting farmers from catastrophic losses is essential to strengthening both household and national economic resilience.
Livestock insurance, therefore, is not just about protecting animals — it is about safeguarding livelihoods, stabilizing rural economies and reinforcing national food systems.
Despite these challenges, uptake of livestock insurance in Zambia remains low, particularly in remote areas where awareness is limited, with government aiming to double national insurance penetration from 2.5% to 5% by 2030.
In contrast, crop insurance under the Farmer Input Support Programme (FISP) has been implemented for several years, making farmers more familiar with such insurance products.
To address this gap, stakeholders including Pula Advisors and BlueOrchard Finance Limited have stepped in to increase livestock insurance penetration through targeted initiatives aimed at strengthening farmers’ resilience to climate-related shocks.
Recently, Pula Advisors and BlueOrchard Finance Limited committed US$248,400 — approximately K5 million — in Premium Subsidy Support for the pilot phase of the Livestock Hybrid Index Insurance Product. The initiative is targeting 44,000 pastoralists across Zambia and was officially launched on 27th January, 2026 in Lusaka.
The programme also aligns with President Hakainde Hichilema’s directive to increase the national cattle population to 7.4 million by 2027 and to advance Zambia’s ambitious US$1 billion beef export target.
During the launch, Pula Advisors Southern Africa Commercial Director, Joyce Mlewa, said the pilot is designed to respond to the realities faced by pastoral farmers.
“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,” she stated.
The Ministry of Fisheries and Livestock expects the pilot to enhance household-level risk protection, promote market confidence and investment, expand financial inclusion and strengthen private sector growth within the livestock value chain.
However, index-based insurance products have in recent years faced trust challenges among farmers. Stakeholders note that improving uptake will require greater transparency, timely payouts and clearer communication around how hybrid index triggers work.
Responding to a press query from Money FM News, Insurers Association of Zambia (IAZ) Executive Director, Dr. Nkaka Mwashika said limited awareness remains a key factor behind the trust gap.
“That is an area we work on continuously. As IAZ, we encourage our members to invest in farmer sensitization and we coordinate the annual National Insurance Week to help demystify how these products work. Reaching every farmer is still challenging because many live-in remote areas with limited connectivity, but insurers and development partners are expanding outreach efforts on the ground,” Dr. Mwashika stated.
IAZ believes that with sustained awareness campaigns and institutional support, livestock insurance uptake will grow over time.
“This new project under Pula should be fully supported by all who have the interest of our pastoral farmers at heart,” he said.
Meanwhile, players within the livestock sector have pledged to ensure that farmers — including those in remote and underserved areas — are effectively enrolled and not excluded from the 44,000 beneficiaries targeted under the pilot.
Speaking in an interview with Money FM News, Zambia Livestock Cooperative Union (ZALCU) Chairperson Elias Nkhuwa, said the Union will leverage its nationwide cooperative structures, primary societies and local leadership to facilitate last-mile enrollment in collaboration with extension officers and community-based livestock structures.
Mr. Nkhuwa added that enrollment efforts will be integrated into existing livestock activities such as dipping schedules, vaccination campaigns and livestock markets to ensure broad and equitable coverage.
“In addition, the Union will lead farmer education and sensitization efforts to improve understanding and uptake of the hybrid index insurance product. This will include explaining how the insurance works, what triggers payouts, and how it complements good livestock management practices,” Mr. Nkhuwa added.
He stressed that coordinated enrollment, education and farmer representation will help strengthen resilience, promote sustainable herd growth and contribute meaningfully to Zambia’s livestock transformation agenda.
With insurance serving as a reliable risk management tool, livestock farmers are also expected to gain greater confidence to invest in expanding and improving their herds — a key step toward achieving the national target of increasing Zambia’s cattle population and growing the beef export industry.
