Mbabane – The Eswatini National Agricultural Union has introduced a new crop insurance product aimed at protecting maize and bean farmers from weather-related and disaster risks.
The launch took place in Mbabane, with the product targeting smallholder farmers across the country. Branded under the message Protect your harvest with crop insurance, the cover is priced from E315 per farming cycle for a one hectare field planted with maize or beans. The premium is set at 2.5 percent of total production costs and is currently available to farmers who are registered members of ESNAU.
The insurance policy covers crop losses resulting from storms, hailstorms, strong winds, frost, fire and lightning, earthquakes, riots and strikes, explosions and malicious damage that leads to physical destruction of crops. It also includes selected uncontrollable pests and diseases, while excluding damage caused by armyworm, fall armyworm and locust infestations.
ESNAU Chief Executive Officer Tammy Dlamini said the product was introduced in response to the increasing frequency of crop losses linked to climate change, which has made farming more risky for many producers.
He said insurers had previously been hesitant to offer agricultural cover due to high exposure to losses, but repeated climate related incidents had created the need for a structured insurance solution that could support farmers.
Dlamini said the insurance product was developed in partnership with Asset Wise Insurance and is underwritten by Lidwala Insurance. While the initial rollout focuses on maize and beans, ESNAU is exploring the possibility of extending cover to other crops, including vegetables, as well as livestock, with premiums expected to vary according to production costs.
He said access to the product is currently limited to ESNAU members, with plans to expand availability as it gains traction. Dlamini added that the lack of agricultural insurance has also affected farmers’ access to financing, as lenders struggle to price risk and set interest rates in the absence of predictable protection against losses.
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