By Phiwa Sikhondze
The Youth Enterprise Revolving Fund (YERF) has made insurance a mandatory requirement for all agribusinesses seeking funding, a move aimed at protecting youth entrepreneurs from the financial risks posed by climate change.
This policy, introduced in partnership with Lidwala Insurance Company, ensures that young farmers and agripreneurs secure coverage against crop losses, livestock deaths, and infrastructure damage caused by extreme weather conditions.
YERF notes in a press statement that with unpredictable weather patterns becoming more frequent, the agribusiness sector remains highly vulnerable to climate-related disruptions.
Many youth-led enterprises struggle with challenges such as droughts, floods, wildfires, and shifting growing seasons, which impact production schedules and profitability. The introduction of compulsory insurance seeks to enhance the resilience of these businesses and prevent loan defaults that could jeopardize their sustainability.
YERF has partnered with Lidwala Insurance Company to offer discounted insurance premiums specifically designed for businesses within the agribusiness sector. This insurance coverage extends to both crop and livestock value chains, ensuring that young farmers and entrepreneurs have the necessary protections in place to navigate the uncertainties of climate change.
Beyond insurance, YERF is exploring additional risk mitigation strategies to further bolster resilience among youth entrepreneurs. These initiatives include co-financing for critical infrastructure investments and the promotion of innovative practices, such as protected farming, which can help shield agricultural operations from extreme weather conditions.
Additionally, the Fund is currently assessing the impacts of climate change on YERF-funded businesses to better understand the challenges they face. This assessment will inform the development of tailored interventions that can support affected entrepreneurs and help avoid business failures.
Beyond agribusiness, YERF is calling for collaboration with both public and private sector stakeholders to strengthen resilience across various industries affected by climate change.
The Fund emphasizes that comprehensive risk management, including diversification, sustainable practices, and technological adaptation, is crucial for long-term business survival.