02 Jun 2025

Farmers are encouraged to prioritise insurance as a means to mitigate potential losses arising from unforeseen circumstances.

In an interview recently, Mr Kabo Mdojwa, executive head of insurance for Citizen Entrepreneurial Development Agency (CEDA)’s Insurance Brokers (CIB) said farming continued to be a risk and costly endeavour arising from unforeseen circumstances. 

However, he said despite the launch of CEDA Insurance Brokers in September 2023, registration numbers among farmers remained low. 

This, he said had led to increased efforts to engage with CEDA to raise awareness about the diverse insurance packages available.

Mr Mdojwa said CIB, a subsidiary of CEDA, aimed to provide insurance solutions for CEDA-funded clients as well as members of the public who sought insurance options. 

Their offerings include a comprehensive range of insurance products, encompassing life and health insurance, as well as property and liability covers. Specific products include coverage for farm equipment, irrigation systems, tractors, boreholes, vehicle insurance, and employee coverage, he said. 

He said these insurance covers were designed with the understanding that many Batswana were engaged in farming. 

He stressed that livestock represented not just animals, but crucial assets related to income, inheritance, and legacy for farmers. 

Like any business, farming is vulnerable to risks that could disrupt production.

He acknowledged the various threats that farmers faced, which included natural disasters, fire damage, lightning strikes, attacks from wild animals and uncontrollable diseases. 

In cases of loss, he said recovery might take years, if it was possible at all. 

The Livestock Insurance product is thus essential, providing compensation for the unexpected and unforeseen consequences that farmers might encounter.

“This product offers flexibility, enabling farmers to insure only the animals that are most important to their operations, rather than requiring insurance for the entire herd,” he explained.

In terms of crop insurance, Mr Mdojwa advised Batswana that this cover was designed to protect against losses stemming from perils such as hail, windstorms, fires, lightning, frost, pests, and diseases. 

The coverage extends to various field crops, including maize, sorghum, beans, including horticulture.

Regarding herd select coverage, he mentioned that it specifically targeted cattle, sheep, and goats, covering all mortality risks such as death due to diseases, accidents, theft, and transit.

The herd essential package offers protection for selected livestock against death from fire, lightning, theft, and accidents, including humane slaughter. These insurance packages also extend to stud animals and feedlots,he said. 

Mr Mdojwa underscored the significance of the agricultural sector in diversifying the economy and creating employment opportunities, making it imperative to minimise losses while striving for sector development. ENDS