Agricultural insurance at the heart of climate resilience in Mali: an innovative approach to protect livelihoods and combat child labour

Faced with the growing challenges of climate change and its disastrous impacts on Malian cotton producers, a new initiative is emerging within the framework of the ACCEL Africa project. In partnership with Pula Advisors and AGRA, an innovative agricultural insurance product is being introduced, aimed at strengthening the resilience of cotton farmers while contributing to the fight against child labor. This activity marks a key step in the adoption of innovative approaches to protect the livelihoods of vulnerable producers.

Mali, where agriculture represents more than 36% of GDP and employs 80% of the active population, is particularly vulnerable to climate shocks. The 2022-2023 agricultural campaign was severely affected by pockets of drought, floods, as well as attacks by insect pests, resulting in a 54% loss in cotton production compared to the previous season. In addition, since August 2024, Mali has officially declared a state of national disaster, following floods that affected nearly 10,000 households in the 17 regions and the District of Bamako. Among the affected regions are those of the ILO's ACCEL Africa project.

This vulnerability, aggravated by the lack of financial protection mechanisms, exacerbates poverty and sometimes encourages households to resort to child labor as a survival strategy.

Index-based agricultural insurance: an innovative resilience tool

To mitigate these risks, the “Design and Implementation of Effective and Innovative Agricultural Insurance” project was launched in the Sikasso and Koulikoro regions. This insurance product, designed by Pula Advisors with support from AGRA, combines satellite, historical and field data to provide coverage against climate hazards. This insurance aims not only to protect crops, but also to provide farmers with financial security to access credit and adopt more resilient agricultural practices.

"It is noble to establish an agricultural insurance program to protect farmers, the linchpin of our economy, against the climate risks they face.”

Ministry of Agriculture

This pilot project, which will benefit 1,000 cotton farmers in the targeted areas, is part of an integrated approach implemented by the ACCEL Africa project. 

© ILO/Djitaba

Indeed, the initiative goes beyond financial solutions by integrating non-financial interventions, such as capacity building for cotton producers and cooperatives and promoting sustainable agricultural practices. This combination of financial and non-financial instruments is essential to reduce the vulnerability of farmers while combating the use of child labour.

Open innovation supported by strategic partnerships in the cotton value chain

The introduction of this insurance product is based on an ecosystem of strategic partnerships. In addition to Pula Advisors and AGRA, the project involves the Malian Ministry of Agriculture, the Confederation of Cotton Producers’ Cooperative Societies (C-SCP), and the Compagnie Malienne de Développement des Textiles (CMDT). This network of partners makes it possible to pool efforts and provide a systemic response to the challenges of climate shocks and livelihood protection.

The agricultural insurance introduced under the ACCEL Africa project is a concrete example of open innovation, where strategic collaborations play a key role in developing sustainable solutions for Malian producers. By integrating financial tools such as insurance and strengthening agricultural practices, this initiative aims not only to improve farmers’ resilience to climate shocks, but also to offer viable alternatives to child labour, thus contributing to more equitable and sustainable rural development.