Since early 2015, Ethiopia has been in the grip of the worst droughts in recent history, which threatens the food security of more than 10 million people. Responding to the current crisis and Ethiopia’s historical vulnerability to the prolonged drought, Kifiya Financial Technology PLC, a digital technology platform, conceptualized a satellite imagery (normalized difference vegetation index)-based crop microinsurance program for farmers. The entity, however, found it challenging to translate the concept into a commercial product. It engaged MSC to turn its vision into reality.

In 2016, MSC provided technical advisory and capacity-building support to help Kifiya translate its pioneering NDVI-based agriculture insurance product concept into a first-of-its-kind product in Ethiopia. MSC provided the following support:

  • Translated the concept into a comprehensible, client-centric index insurance product;
  • Forged partnerships with a leading insurer and government agencies; Analyzed the regulations in Ethiopia and obtained regulatory approval;
  • Mobilized government support and secured the commitment of financial aid to the project in the form of direct subsidy to beneficiaries;
  • Formulated a strategic business plan that aligned seamlessly with the client’s existing DFS business.