Scale Index-based Flood Insurance (IBFI) for Smallholder Farmers in Zambia's Flood-prone Southern Province

Situation

In Zambia, priority demand is recorded across Mazabuka District, Southern Province, within the domain of Climate Risk, Resilience & Early Warning, focusing on Maize, mixed crops / agricultural risk finance. Primary beneficiaries include smallholder farmers in flood-prone areas along the magoye river; scalable to broader southern and eastern africa.

Extracted Evidence

IBFI pilot covered three villages at the lower Magoye Catchment — first of its kind in Zambia Report recommends scaling IBFI across Zambia and sub-Saharan Africa with flood model refinement.

Intelligence

When an expressed demand in Mazabuka District, Southern Province is rated High with a priority score of 9.7/10 (Act tier), the limiting factor is scaling and investment reach. Sustaining action within current perimeters leaves the wider crisis unaddressed. Expanding coordinated response across Government & Public Policy, Private Sector & Industry, Producers & Local Communities, Research & Scientific Institutions is the strategic imperative.

Demand Signal

This demand is classified as an Expressed Demand, formally stated through International Water Management Institute (IWMI). It carries signal type(s): Innovation Demand, Scaling Demand, Financing/Investment Demand. Demand strength is rated High. Priority score: 9.7 out of 10. Response tier: Act.

Demand Description

Flood index insurance is largely absent in sub-Saharan Africa; the first Zambia pilot demonstrated demand and feasibility but reaches only three villages, leaving the majority of flood-prone smallholder farmers without financial protection against recurring flood losses. A pilot IBFI was co-designed and implemented along the Magoye River, Mazabuka District, covering three villages with tiered payouts tied to satellite-observed flood depths (80th–99th percentile triggers; sum insured ~USD 64/farmer).

Demand Gap

Gap type: Access to Inputs, Finance & Credit Gap, Climate & Resilience Gap.

Flood index insurance is largely absent in sub-Saharan Africa; the first Zambia pilot demonstrated demand and feasibility but reaches only three villages, leaving the majority of flood-prone smallholder farmers without financial protection against recurring flood losses.

Gap Signal

IBFI pilot covered three villages at the lower Magoye Catchment — first of its kind in Zambia Report recommends scaling IBFI across Zambia and sub-Saharan Africa with flood model refinement.

Stakeholders and Target Group

Source

Document

Co-design and implementation of Index Based Flood Insurance (IBFI) in flood proofing communities of Mazabuka District, southern Zambia (Research Report, 2024-12-20 00:00:00).

Organisation

International Water Management Institute (IWMI)

Citation

Umer, Y.; Makungwe, M.; Amarnath, G.; Jacobs-Mata, I.; Banda, N.; Njoroge, M. 2024. Co-design and implementation of Index Based Flood Insurance (IBFI) in flood proofing communities of Mazabuka District, southern Zambia. IWMI/CGIAR Ukama-Ustawi. Read the primary source