By Cecilia Chiluba/Zambia/Lusaka
Pula Advisors Zambia, in partnership with BlueOrchard Finance Limited, has committed US$248,400 in premium subsidy support for the pilot phase of the Livestock Hybrid Index Insurance Product.
The initiative is aimed at protecting farmers from climate-related shocks and strengthening resilience in the livestock sector.
Permanent Secretary in the Ministry of Fisheries and Livestock, Dr. Max Choombe, officially launched the pilot on Tuesday, in Lusaka-during the signing of a Memorandum of Understanding (MoU) with Pula Advisors Zambia.
Speaking at the signing ceremony, Dr. Choombe, described the initiative as a key step toward strengthening resilience and confidence in Zambia’s livestock industry.
He said the premium subsidy support demonstrates Government’s commitment to piloting and scaling up livestock insurance as a key risk management tool for farmers.
Dr. Choombe explained that the Hybrid Index Insurance model will use objective environmental indicators such as rainfall and vegetation cover to trigger payouts when drought or pasture decline thresholds are met, ensuring transparency, efficiency and predictability for farmers.
The Permanent Secretary stressed that the pilot is expected to enhance household-level risk protection, promote market confidence and investment, expand financial inclusion and strengthen private sector growth in the livestock value chain.
“This Livestock Hybrid Index Insurance Pilot is a product of collaborative engagement and shared vision among key stakeholders: Government, represented by the Ministry of Fisheries and Livestock and Pula Advisors, an agricultural insurance and technology firm with global and regional experience,” he said.
He expressed confidence in Pula Advisors’ experience in agricultural insurance, citing the firm’s involvement in crop insurance under the Farmer Input Support Programme (FISP), and commended insurance partners for providing underwriting capacity, distribution networks and claims settlement systems.
Earlier, Pula Advisors Southern Africa Commercial Director Joyce Mlewa noted that the livestock sub-sector remains highly exposed to drought, disease and pasture degradation, which can erase years of farmer investment in a very short time.
Ms. Mlewa stated that the pilot, supported by development partner BlueOrchard, targets access to insurance for up to 44,000 pastoralists across Zambia.
“Our Livestock Insurance solution is designed with pastoralist realities in mind. It blends asset protection and asset replacement—offering periodic payouts when grazing conditions deteriorate due to risks such as drought and pest infestation, while also responding to mortality arising from illness, disease, or accidents. In doing so, it helps farmers protect herd value and recover more quickly from shocks.”
“Our ambition is to help build a stronger livestock ecosystem—one that is anchored on traceability, credible data, and timely response,” she added.
Ms. Mlewa hailed the Government for ongoing reforms in the sector, noting that initiatives such as the Zambia Beef Export Project and investments in animal health were creating the right platform for introducing value-adding solutions like livestock insurance in a responsible and sustainable way.
The Pilot is also expected to support President Hakainde Hichilema’s directive to increase the national cattle population to 7.4 million by 2027 and advance Zambia’s ambitious US$1 billion beef exports target.
