Nyala Insurance Company in collaboration with Omo Micro Finance and donors has launched indemnity based livestock insurance service in Southern Omo Zone.
Nyala Insurance Company General Manager Solomon Zegeye said that the project is expected to benefit over 6,000 agro-pastoral livestock smallholders via providing insurance service bundled with credit in Arba Minch and Darashe districts of Southern Nations, Nationalities and Peoples' State.
The project is integrated with in the overall development policy and strategic frame work of the country which prioritizes achieving rural development and a pr-request for meeting the goals of financial inclusion.
He further said Omo Micro Finance will render the insurance service as an exclusive benefit for every farmer engaging in livestock and dairy businesses.
The OMO Micro finance Executive General Matheos Wantamo for his part said his institution has agreed to work in partnership with Nyala Insurance and other partners in eleven woredas in southern Omo.
The loan will be made available to pastoralists with a view to purchasing hybrid cows.
As to him, the existing insurance law and the National Bank directive permit micro finance institutions to provide microloans and agro-pastoral communities have the right to buy both assets and insurance with premium.
Such kind of insurance service helps pastoralists to minimize the risk caused by drought and natural calamities.
According to Matheos, the institution has been providing the insurance service using its 15 agents and 105 subbranches. "We have 3,884 beneficiaries of such service in various kebeles and the service is being rendered with no bureaucratic hurdle."
The Mercy Corps Non Governmental Organization Field Coordinator Yigerem Kassa also said his organization supports the project providing consultancy service to assess the viability of micro insurance business on the agro- pastoral community.
"Our partnership with Omo Micro Finance, National Bank of Ethiopia and Nyala Insurance Company attests to the vitality of Public Private Partnership."
According to Yigerem, insurance has been the most underdeveloped business in the country particularly in the marginalized community.
Hence, the organization has been playing its role through providing capacity building to the pertinent stakeholders and participating in the feasibility study of such project.
To expand insurance service in the agro-pastoral community, awareness creation campaign needs to be strengthened.
It was learnt that half of the premium payment has been subsidized by the company in a bid to encourage agro pastoral livestock smallholders.