Legislator for Nsawam Adoagri, Frank Annoh-Dompreh has supported parliamentary efforts concerning the development of a comprehensive agricultural insurance regime in the country.
Speaking on the Floor of Parliament on Wednesday, he said such insurance regime includes quality agricultural insurance indices that are in line with global trends.
“Recognising the significance of agriculture’s influence on GDP, it is imperative that holistic measures be put in place with the capacity to promote and sustain agricultural activities, especially crop production and livestock rearing.
“Mr Speaker, this honourable house ensured the passage into law, Ghana’s Insurance Act 724 in 2006. Since that time, so much has taken place that calls for amendments of the law accordingly.
“Trading Economics indicate that GDP from Agriculture in Ghana averaged GHS 6.656 billion from 2006 until 2019, reaching an all-time high of GHS 8.723 billion in the fourth quarter of 2018 and a record low of GHS 5.322 billion in the fourth quarter of 2007,” he said.
The Sub-Saharan African region have large population percentages involved in crop production, among other agricultural activities.
With the relatively favourable weather conditions present, both small scale and large scale farming form a significant part of the economic activities that are contributing to the total GDP of the respective countries.
Mr Annoh-Dompre said the country’s investments in agriculture ought to be backed by a capable insurance regime that supports this growing industry.
The Chairman for Parliament’s Foreign Affairs Committee said in simpler terms, the country’s quest to increase participation in the agricultural industry can be achieved by strengthening the framework that provides investment-safety for agricultural activities that are facing an increased risk of capital loss in recent times.
“Present climatic conditions like excessive rainfall leading to floods are a global concern because of the adverse effects they continue to have on crop production and food security, in effect, there is a reluctance to risk capital in farming activities especially by low-income farmers,” he said.
He told Parliament that the National Insurance Commission (NIC), with support from the Alliance for Green Revolution Africa (AGRA) has called for the amendment of the insurance Act 724 of 2006 since it did not incorporate agricultural insurance at the national level.
“It was also through the efforts of the NIC, the Ghana Insurers Association (GIA), the German Development Corporation (GIZ) and Ministry of Food and Agriculture (MoFA) that the establishment of the Ghana Agricultural Insurance Pool (GAIP) was achieved in 2011. GAIP developed the first Agric-insurance products and remains the largest insurance pool in Ghana,” he added.
Below is his statement: