Tadesse, Jemal Ahmed

Micro-insurance as a Tool for Climate Variability:
Its Impact on Farmers’ Livelihood and the Environment in Rural Tigray,Ethiopia.


 Agriculture is the main source of livelihood for the majority of the population in Ethiopia. It is still, however, largely in the subsistence stage, which is a very risky and uncertain venture. In addition, climate variability is becoming more frequent and a real threat to the farming activities of the peasants.

Given the malign effects of uninsured risk, innovations that reduce the adverse consequences of shocks would seem to hold welfare benefits. Among such innovations is the provision of insurance to poor farmers, index-based insurance being at the centre of agricultural insurance. One variant of index-based insurance – the Horn of Africa Risk Transfer for Adaptation – is being implemented in rural Tigray, Ethiopia. Despite its implementation for some years, however, no attempt has been made to evaluate what the project has yielded for the beneficiaries of the programme.

This study is thus aimed at filling this gap. Moreover, the study also aims to investigate the challenges of the project and thereby to offer possible solutions that would help to sustain the project. To this end, a stratified random sample of 500 households, both participants and nonparticipants of the project, will be interviewed. Focused group discussions will also be held with both treatment and control groups, experts and key stakeholders, while key-informant interviews will be conducted with experts at different levels of the project. Both qualitative and quantitative methods of analysis will be implemented to process the information gathered. Participants of the project will be evaluated in terms of technology adoption, decision making and livelihood outcomes against the non-participants of the project. To this end, propensity score matching will be implemented to identify and clarify the impacts of the project on preselected impact indicators of the project.

Prof Onah Felix Ezema and Dr Munpuibeyi William Fonta, Prof of Economics. Faculty of Social Science, University of Nigeria, Nsukka (UNN)

Disciplinary history: BA Economics, Bahir Dar University, Ethiopia; MSc Agricultural Development, University of Copenhagen, Denmark and University of Padova, Padova, Italy.

Faculty/department of registration: Faculty of Social Sciences, Department of Economics, University of Nigeria, Nsukka (2013)