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Before the conclusion of the season, the organisation stated it will pay almost 6,000 farmers for crops harmed by climate change.
Thousands of Kenyan farmers have been covered for weather-related risks thanks to a collaboration between decentralised protocol Etherisc and microinsurance issuer ACRE Africa.
Etherisc and ACRE Africa announced that some of the more than 17,000 smallholder farmers in Kenya covered by the collaboration had received insurance benefits. The project, which was first launched in November 202, was funded in part by the Chainlink Community Grant, the Ethereum Foundation, and the Decentralized Insurance Foundation.
“We’re thrilled that after months of hard work on this initiative, we’re seeing the fruits of our labour — which has a tangible social impact on farmers in Kenya who are threatened by the devastating effects of climate change,” said Etherisc chief inclusive officer Michiel Berende. “The solution that we built with our valued partners at ACRE Africa overcomes a number of challenges associated with traditional crop insurance — delayed payments, high premium costs, and lack of transparency.”
Smallholder farmers are allegedly able to pay as low as $0.50 in premiums to acquire coverage for crops negatively affected by climate change as part of the scheme – Kenya has been hit severely by both droughts and flooding in the past. Though Etherisc and ACRE Africa stated that they hoped to serve approximately 250,000 farmers in East Africa, some of those who have already received coverage have been paid via a blockchain-based end-to-end solution.
Etherisc said it has distributed funds to farmers in need through M-Pesa, a cash and mobile payment system, with about 6,000 farmers anticipated to be reimbursed for lost or damaged crops before the end of the season. Kenya is known for its flower fields, but it also grows sugarcane, sweet potatoes, maize, and a variety of other fruits and vegetables.
Many have praised blockchain solutions for a variety of difficulties confronting African citizens, ranging from assisting women in becoming financially independent to suggesting blockchain voting methods to save money and provide more safe elections. Local farmers in Zimbabwe can track and trace cattle using a blockchain-based tracing tool, a system aimed at making it easier to export beef and increase profits.