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Acre Africa

Acre Africa works with insurance providers on the protection of African smallholder farmers.

Facts

 Investee Acre Africa, founded 2009
 Location Kenya, Africa
 Sector Agriculture 
 Funding Start 2014
 Funding type Equity

Impact

Context

In East Africa, agriculture employs up to 75% of the region’s population; most of them farming fewer than five hectares, often in remote areas. Many of these farmers are continuously faced with erratic weather patterns - mostly droughts and inconsistent rainfall - which prevents them from investing in their farms and threatens their livelihoods. In adverse seasons e.g. droughts, farmers can lose up to 100% of their harvest with no safety net.

Solution

  • Acre Africa (the brand name of Agriculture and Climate Risk Enterprise Ltd. (ACRE)) links farmers to insurance products so that they can confidently invest in their farms. In 2014, 233’000 farmers across East Africa were insured through products Acre Africa had designed.
  • Acre Africa is not an insurance company, but a service provider working with insurers and players within the agricultural insurance value chain, undertaking activities to facilitate access to insurance products for smallholder farmers.
  • Acre Africa evolved from the Kilimo Salama project, started by the Syngenta Foundation and the GIIF, and plans to reach millions of Africa’s farmers.
  • Acre Africa enables aggregators to cover the cost of providing the farmers insurance thereby enabling farmers to recover sums invested when a claim is made.

Impact depth

Acre Africa creates positive impact on two levels:

  • At farm household level, affordable insurance enables and encourages smallholder farmers to invest in improving and increasing farm output.
  • At farm level, Acre Africa mitigates the impact of potential losses due to weather-related risk e.g. drought or floods.
Impact Reach 2014 2015 2016
# of farmers insured 198'279 395'472 415'831
# of operational countries 2 3 3
total sum insured (USD) 11'000'000 11'547'333 25'525'826

 

SDGs

By investing in Acre Africa, we align with and contribute to three of the United Nations’ Sustainable Development Goals.

"LGT Impact Ventures stands out because its team mentors the management team of its portfolio companies. Acre Africa’s management team has developed experience in assessing and laying the foundation for long term success for our social business."

Rahab Kariuki, Managing Director, Acre Africa