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Author: Andrea Camargo, World Food Programme (WFP). On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg, in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 7 th  piece in a series of blogs that we’ll be running throughout the year on this topic, Andrea Camargo from the UN World Food Programme (WFP) explains why closing the crisis protection gap requires a full range of tools to building resilience, including cash transfers, livelihood development, and of course an integrated approach to inclusive insurance. In 2024, 343 million people faced acute hunger – 1.9 million of them in catastrophic conditions. With conflicts, climate extremes, and economic shocks on the rise, these numbers are likely to grow unless we adopt urgent actions, such as closing the crisis   protection gap . Without financial tools – including insurance – families are left vulnerable, unable to rebuild when disaster strikes. Inclusive risk financing instruments that are accessible, affordable, and tailored to the needs of underserved populations, can be critical to close this protection gap. Protecting Food Security and Strengthening Resilience Through Financial Inclusion In today’s world of cascading crises, building resilience isn’t optional – it’s essential. WFP, the world’s largest humanitarian organization, is addressing this challenge not only through food assistance but by empowering people to better withstand and recover from shocks – and central to this effort is a focus on financial inclusion , as a way to enhance livelihoods and empower millions of people, leveraging its food security programmes through:   Interventions unlocking access to inclusive financial services through humanitarian cash transfers or government-to-person payments (G2P): WFP is increasingly transferring funds directly into individuals’ digital financial accounts, connecting people to formal financial services, often for the first time, and advancing their digital financial inclusion . As the world’s largest provider of humanitarian cash transfers – disbursing US$2.2 billion to 47 million people across 75 countries in 2024 alone - WFP has significant potential to drive transformative change. By 2030, WFP aims to support 10 million women and their families through their own financial accounts . Interventions unlocking access to inclusive financial services through livelihoods and resilience programmes (non-cash transfer specific) : WFP promotes access to financial services such as credit, savings, and insurance as part of broader programmes promoting resilience and livelihoods, such as: * Smallholder Agricultural Market Support (SAMS)  programme, which is WFP’s value chain development approach aiming at improving the livelihoods of smallholder farmers, promoting local value chain development and strengthening the resilience of local food systems; * Inclusive Risk Financing (IRF) work , previously known as the R4 Rural Resilience Initiative (R4); * The Youth in Work (YIW) programme, which aims to strengthen youth and women’s jobs food systems to promote increased value chain employment opportunities for young people in vulnerable communities; * The SheCan  intervention, which aims to improve economic and income-generating opportunities for women and their communities by supporting their access to affordable micro-loans tailored to their needs and enhancing their financial capabilities through gender-sensitive financial education programmes.   Inclusive Risk Financing On Inclusive Risk Financing, over the past decade WFP has established itself as a global leader, reaching more than 10 million people with access to insurance, savings and credit to manage climate risks. This effort began with the R4 Rural Resilience Initiative  and has since evolved into a comprehensive IRF approach. This shift marks a move towards a more integrated strategy, drawing on past learnings to strengthen the sustainability and resilience of food systems in the face of increasing weather and economic shocks. In 2024 alone, over three million people in 16 countries were covered by WFP-supported inclusive insurance programmes, with more than US$248 million in financial protection [1] . When weather-related shocks struck, US$41 million in insurance payouts provided timely support to 1.5 million people—demonstrating the power of insurance to protect lives and livelihoods when it matters most. In addition to insurance, 320,000 people engaged in savings and loans activities, with 68 percent of them being women. Together, they saved a total of US$17 million and accessed loans worth US$10.2 million, reinforcing the role of integrated financial services in building long-term resilience and economic empowerment—especially for women.   More Than a Safety Net: Insurance Builds Long-Term Resilience These financial tools don’t just offer a safety net—they build a foundation for long-term resilience . For instance, a 2023 study of WFP’s R4 Rural Resilience Initiative  in Ethiopia, Kenya, Malawi, Senegal, and Zimbabwe carried out by TetraTech found that insured households were better equipped to cope during weather-related shocks. They were less likely to reduce food intake and more likely to recover quickly, invest in improved farming practices, and report higher food security. Insurance can foster resilience and restore confidence . In the highlands of Kyrgyz Republic , livestock herder Aijan Talantbek saw her hay harvest plummet due to shifting seasons. In 2023, a severe drought left pastures barren and reduced fodder supplies, leaving her and many pastoralist families with few resources to sustain their livestock through the harsh winter. Thanks to WFP’s climate risk insurance that empowers local governments to provide support to vulnerable pastoralists, nearly 800 families received over 26 metric tons of barley when the drought triggered an insurance payout. This in-kind assistance was vital in bridging the fodder gap and ensuring the survival of their animals during the winter months.  "Insurance is good,"  Aijan said. “ We would have spent money on barley, but instead, the programme triggered payouts that we received through barley distribution - which really helped.” WFP is now transitioning this programme in Kyrgyz Republic to a forecast-based model , releasing payouts before disasters strike. By promoting earlier action and increasing local government involvement, WFP is helping communities respond faster while supporting long-term sustainability.    Aijan Talantbek, beneficiary of the climate risk insurance programme in Kyrgyz Republic. ( WFP/Giulio D’Adamo) Scaling Resilience Through Integration Success lies not in standalone solutions, but in smart integration . WFP integrates insurance with complementary services—like savings, access to credit, financial education, improved agricultural practices and market access. This comprehensive approach enhances financial resilience and encourages broader adoption. In Guatemala , savings groups have played a vital role in raising awareness about insurance and improving the ability to pay for it. In just three years, the number of people contributing to insurance premiums rose from 1,600 to over 9,000, while average contributions more than doubled. These groups not only build trust and financial literacy around insurance, but also help participants save and grow their incomes – enhancing their capacity to afford and sustain such services. In Senegal , WFP worked with economic interest groups, including community-based cooperatives, often led by women. These groups distributed insurance, offered savings and loan options, and supported income-generating activities. As a result, the number of households paying insurance premiums with their own funds grew from 1,500 to nearly 28,000 in four years, accounting for 54 percent of all policyholders – a strong indicator of increasing trust, financial ownership, and sustainability.   Insurance Alone Isn’t Enough To Manage Weather Extremes      While insurance can be a vital lifeline, it must be part of a broader toolkit of risk management instruments. Different financial tools help manage different types of risk [2] and can reinforce resilience when brough together. Ana Paula Sequeles , a 44-year-old mother of five in Tete Province, Mozambique experienced this firsthand. After the El Niño-induced drought in 2024 destroyed her crops, Ana received an insurance payout of about US$25 that enabled her to buy seeds for the next planting season. Ana was also part of a WFP-supported savings and loans group, which helped her build emergency reserves and manage her money wisely. That savings cushion allowed her to buy food for her children and keep her small business afloat during a critical time. “Without this payout, we would have nothing to hope for, so we are very thankful,”  Ana says.   Ana Paula Sequeles , beneficiary of WFP’s Integrated Climate Risk Management programme. WFP/Ana Mato Hombre   Sustainability Through Strategic Partnerships and Integration With National Systems As weather extremes continue to threaten food systems and livelihoods, solutions like inclusive insurance must be scaled and sustained. But this will only work if they’re embedded within a larger ecosystem of financial services, risk management strategies, and government support. To truly make a lasting impact, insurance schemes must be designed for long-term viability. That means involving committed stakeholders, building strong public-private partnerships (PPPs), and ensuring clear strategies for eventually handing over ownership to local institutions. One key success factor is integrating inclusive insurance into existing national systems that promote resilience, productivity, or social protection. In Ethiopia , WFP jointly with Pula, took a market systems approach, fostering PPPs to boost both supply and demand for agricultural insurance. WFP supported the integration of insurance into the Government’s Input Voucher System (IVS). This move helped scale the programme from 20,000 farming households in 2022 to nearly 250,000 in 2024. By linking insurance to something farmers already value—input access—the programme tapped into real demand and ensured greater buy-in. For farmers like Yohannes Negash  in Ethiopia’s Amhara region, this shift has been life-changing. After enduring years of drought, locust infestations, and conflict, Yohannes enrolled in the insurance programme backed by WFP, the Ethiopian government, and local and international partners.  “ This insurance is a necessity,”  said Yohannes. “ Just as we have health insurance for our bodies, we need crop insurance for our farms. ” With US$675,000 in payouts delivered across the region, farmers like Yohannes are no longer just surviving—they're planning ahead and investing in a more secure future.   Yohannes Negash, insurance beneficiary in Ethiopia. ( WFP/Michael Tewelde)   A Path Forward: Resilience Through Inclusion WFP’s approach to inclusive risk financing goes beyond responding to crises—it empowers people to prepare for the unexpected, adapt to changing realities, and invest confidently in their futures. By combining insurance with savings, loans, financial education, and integration into broader services, WFP is advancing financial inclusion as a powerful driver of resilience—transforming humanitarian assistance into a foundation for long-term stability, empowerment, and dignity. In a world of increasing uncertainty, inclusive financial tools are no longer optional—they are essential for all. And WFP is making sure no one is left behind. ________   [1]   https://www.wfp.org/publications/disaster-risk-financing-annual-report [2]   For instance, insurance is a critical tool to manage severe and less frequent risks, whereas savings can be instrumental to build reserves enabling risk retention of more frequent and less severe risks. About the Author: Andrea Camargo is currently leading the Inclusive Risk Financing Portfolio at the World Food Programme (WFP). Born in Colombia, she is a qualified lawyer specialized in Insurance and International Law. Andrea has more than 20 years of experience in the insurance sector and 15 years of experience in the inclusive insurance and climate risk sector in more than 30 countries in Latin America, Europe, Africa and Asia.  She has supported international organizations, development agencies, governments, private sector entities, among others, proposing pioneering solutions that are legally viable, financially sustainable and above all offer adequate protection against risks to those who need it most.

Author: Sam Mendelson, e-MFP GLI Action Group Lead. Over the past decade, gender lens investing (GLI) has become a widely embraced concept across the development finance ecosystem. It has become embedded in global frameworks, supported by donor initiatives, and advanced through important coalitions and standards - from the   2X Criteria and Equilo’s diagnostics tools to the Women’s Empowerment Principles , Pro Mujer’s Gender Knowledge Lab ,  and the   Cerise+SPTF SPI5 Full framework . Yet for many of the financial service providers (FSPs), investors, and technical assistance organisations operating in inclusive finance (particularly at the field level) GLI remains a  conceptually resonant but practically elusive goal: what is it for, how is it achieved, and what is there to help explain it? In early 2025, after extensive consultations with members of the e-MFP GLI Action Group (GLI AG), the e-MFP Secretariat made the decision to amend the AG’s structure and plans. Under this new phase, e-MFP is leading a two-year, tightly scoped plan of activities (2025–2026) aimed at filling two of the most pressing and actionable gaps in GLI practic e: 1. The absence of a curated, user-friendly, filterable resource portal tailored to different stakeholder groups; and 2. The lack of visibility and peer sharing around how GLI is actually being implemented in practice. To develop the resource portal, which we have heard from members and stakeholders would be so valuable, we’re also thrilled to welcome the consultants who will be leading the first part of this work: Katie Tavenner and Carlos Quiros  of QLands , who will be supported during the mapping and engagement phase by Jenny Morgan , an extremely experienced gender finance consultant and facilitator (and former co-lead of FinEquity). The consultants, and Fernando Naranjo and I from e-MFP, are grateful to be supported by a fantastic seven-person Advisory Committee of Action Group  members. Why a Reboot — and Why Now? Members told us they didn’t want another generic library of tools. They wanted something smart and annotated with clear value-add: a portal that’s filterable by stakeholder type  (whether you’re an FSP, an investor, a market builder, or a TA provider); that helps you know which tools to use at what stage; that gives you real-world examples of how others have applied a gender lens - and what it meant in practice. We would like to move from information overload to curated guidance. A Curated Portal for Practical Application As I introduced above, the centrepiece of the GLI AG’s 2025 workplan is the GLI Resource Portal  - an online, filterable, evolving platform that allows stakeholders across the inclusive finance ecosystem to: Identify relevant tools tailored to their role, needs, and level of experience; Learn from real-world case studies of how others have applied GLI principles in practice; Access curated/annotated guidance materials  (not just every tool ever created); and Stay informed  about upcoming events, webinars, and peer-learning opportunities The portal will build on and connect to existing platforms or sites - among them 2X, FinEquity’s resource guide, the Pro Mujer Gender Knowledge Lab’s Gender Platform, CERISE+SPTF’s own GLI Working Group  - and many others. We want it to become a trusted one-stop-shop for busy practitioners looking to get oriented, go deeper, or implement something new. Telling the Story of Practice The second core activity is a lightweight content stream  to showcase what GLI looks like in practice—warts and all. Through short blogs, mini case studies, and occasional webinars, AG members will have the opportunity to share their experiences: how they’ve navigated leadership buy-in, used (or adapted) diagnostics tools, integrated sex-disaggregated data, or designed products with gender in mind. There is a clear appetite for this kind of content. Members have told us they want to hear from their peers and partners. They want to understand not just why GLI is important, but how it is implemented, measured, refined.  And they want to know what GLI looks like for institutions like theirs - working with limited budgets, diverse client groups, and under real operational constraints. This content will be published in part here on the e-MFP blog, but we will welcome and solicit case studies, interviews and other content that is core to this AG’s purpose. All contributions will be voluntary, and members can either propose content themselves or respond to direct outreach.    What Next? The mapping and resource tagging process has now begun, in advance of a meeting with the Advisory Committee in September to present some initial ideas and gather feedback. There will be a GLI AG session during e-MFP’s annual event in November where it’s anticipated an early mock-up of the Portal will be presented, and the consultants and certain AG members will be available to share progress and answer questions. It’s hoped that the Portal will be read for beta testing in late Q1 2026, and for final completion and launch in Q2. After this, the portal will benefit from regular dedicated maintenance and monitoring to ensure it remains updated and valuable.   How You Can Contribute If you are a member of e-MFP or involved in GLI work (however advanced or exploratory) we welcome your input. The design and refinement of this Portal will be collaborative, and we hope to benefit from e-MFP’s great network to optimise its value. To this end: Do you have a tool, diagnostic resource, or checklist that your team finds useful?  Feel free to share it for potential inclusion in the portal. Have you implemented a gender-smart intervention - whether successfully or not?  Please consider writing a short blog or case note to help others learn. Are you willing to contribute financially to support the portal in 2026? We are open to co-funding opportunities in exchange for branding visibility and thought leadership roles. You can reach out directly to fnaranjo@e-mfp.eu  or smendelson@e-mfp.eu  with ideas, questions, or expressions of interest. Thanks to everyone who has been involved in getting this process to where it is, and please get in touch if you have ideas or questions. Thank you! About the Author: Sam Mendelson  is Financial Inclusion Specialist at e-MFP and is the e-MFP lead for the Gender Lens Investing and WASH Action Groups.

Authors: Emmanuel Gagnerot & Adèle Voyeux, SIDI. In the eighth in our blog series to celebrate the International Year of Cooperatives, Emmanuel Gagnerot & Adèle Voyeux from International Solidarity for Development and Investment (SIDI) discuss the alliance between SIDI and Ethiquable, which promotes sustainable agriculture, agroecology, and the empowerment of local communities in various countries with low human development indices (HDI), as illustrated by the partnership with Apodip cooperative.   Since 1983, SIDI  (International Solidarity for Development and Investment) has been committed to building a fairer world by financing agricultural organisations in the most disadvantaged countries, thanks to its 2000 individual shareholders. In addition to commercial financing ranging from €200,000 to €2 million and via various instruments (debt issuance, equity participation, or guarantees), SIDI also provides technical assistance to rural organizations through grants or personalized coaching . With over 30 agricultural partner organisations, three-quarter of which are certified organic and/or fair trade, SIDI helps to transform the lives of thousands of smallholder family farmers across 17 countries in the Global South. Coffee cooperative in Rwanda (© Philippe Lissac – Agence Godong / SIDI) SIDI supports organic and/or fair-trade cooperatives, primarily in the export sectors (e.g. cocoa, cashew, coffee, etc.), by providing one-year working capital loans  (aligned with the agricultural season) and investment financing.  This financial and technical support helps cooperatives improve their professional development and enhance the services they offer to their members, especially when adopting agroecological and agroforestry practices. As an example of this, SIDI works with Ethiquable   (and Ethiquable ’s partner cooperative APODIP ) to providing financing and TA support: Building Innovative Strategic Partnerships – ETHIQUABLE SIDI has established a strategic partnership with the cooperative Ethiquable  which works with over 105 organic producer cooperatives around the world and distributes its products in more than 60 supermarkets across France. This collaboration began over 10 years ago, when SIDI was providing pre-financing services to small scale producer cooperatives partnered with ETHIQUABLE for their harvest campaign, in low-HDI countries such as Haiti, Madagascar, Ecuador and Peru. The innovative financial and solidarity-based partnership between  Ethiquable  and SIDI illustrates the ongoing commitment of both parties to sustainable agriculture, agroecology, and the empowerment of local communities. The purpose is t o build autonomous smallholder supply chains and strengthen the capacities of farmer organisations . The aim of this partnership is to enhance the financial and technical assistance support provided by SIDI to a larger number of local organic and fair-trade cooperatives, that produce cashew, cacao or coffee, while at the same time equally sharing the risk (50/50). As a result, SIDI offers cooperatives partnered with ETHIQUABLE a dedicated financing package (€1.2M in 2024 and €1.7M for 2025), along with streamlined evaluation processes, a dedicated investment committee as well as favourable loan conditions. Moreover, these small local producer organisations often need to strengthen their internal capacities, particularly in governance, financial management as well as their capacity to innovate in areas such as agroecology, climate resilience and traceability. Beyond technical and managerial skills, this partnership support also seeks to enhance the organisations’ negotiating power within the value chain and with local partners . Thus and in addition to financing, the partnership includes a Technical Assistance (TA) program led by SIDI, focused on strengthening the economic viability of producer organisations, a recurring challenge in the agricultural sector. This partnership is mutually beneficial: all three parties gain from it by sharing the risk. This collaboration secures the supply chain for Ethiquable  and its partner cooperatives, ensures that cooperatives in remote or low-HDI countries receive financing and technical assistance on favorable terms, and, finally, enables SIDI to increase its support to local cooperatives (currently representing 28% of the portfolio).   APODIP: A Key Player In Organic Cocoa And A Creator Of Local Value  APODIP is a great example of an Ethiquable partner cooperative that receives support by SIDI. APODIP - Guatemala Created in 2003 by 48 coffee producers from the Paraiso community in northern Guatemala, the APODIP association now brings together 1,218 small producers committed to responsible production and marketing of organic, high-quality cocoa, coffee, cardamom, and peanuts . In line with the fair-trade movement, the association has grown significantly in recent years, thanks to the partnership it established with Ethiquable in 2018. APODIP is a highly dynamic organisation that has set up a company to handle commercial activities, designed specific brands for each product, and opened a retail store. APODIP has built the country's first cocoa paste manufacturing plant , which will supply Ethiquable's organic chocolate factory in the Gers region of France. The export of a partially processed product - cocoa paste rather than just cocoa beans - enables producers to significantly increase their incomes. While APODIP's growth momentum remains fragile due to insufficient working capital, its development potential is very high, particularly thanks to its cocoa factory . The $250,000 loan granted by SIDI in 2024 enabled APODIP to purchase cocoa from its members, as well as organic cocoa from Ethiquable partner cooperatives in Nicaragua, making the factory profitable. APODIP has also asked SIDI for help in strengthening its administrative and financial capacities and completing the process of creating local added value. This new partnership with APODIP is one of the concrete results of the strategic alliance between SIDI and Ethiquable – and we look forward to developing many more such partnerships to strengthen cooperatives in the years to come. About the Authors: Emmanuel Gagnerot is   Director of Operations and Partnerships at SIDI. With a background in the Social and Solidarity Economy, he began his career at France Active and later headed the SSE department at Crédit Coopératif. His vision combines concrete action, technical expertise, and ethical commitment, values he shares with SIDI’s team and volunteers. At SIDI, he is responsible for strengthening the organization’s impact across its 127 partners in 33 countries, managing a portfolio of €56 million. In addition, Emmanuel leads the implementation of SIDI’s agricultural strategy and works to reinforce support for local cooperatives in the Global South. Adèle Voyeux  brings over 10 years of experience in the microfinance sector. Her career has been deeply rooted in fieldwork, where for many years she performed onsite assignments working directly with small entrepreneurs and smallholder farmers, gaining firsthand insight into their challenges and opportunities. Since joining SIDI in 2024, Adele has expanded her expertise to include cooperatives and sustainable agriculture, further enriching her understanding of grassroots development. At SIDI, she leads fundraising and external relations, leveraging her experience to build strong partnerships and mobilize resources in support of local MFIs and AgriSMEs.

Author: Michaël de Groot, Rabo Rural Fund . In the sixth in our blog series to celebrate the International Year of Cooperatives, Michaël de Groot from Rabo Rural Fund contrasts the beauty of cooperatives as a concept, but a beauty that is all too commonly neglected in practice. How can we maintain the enormous potential of their influence while ensuring they remain fit for purpose, staying competitive and efficiently serving their members? This blog is on the beauty of cooperatives, the power of their collective influence, and the ugliness of how they have been misused. This is not an academic plea, but rather reflects insights working for 30 years with farmer organizations, savings and credit cooperatives and stakeholders in 36 countries. Cooperatives are not some policy instruments to fix every problem in the world i.e. poverty, income, gender, youth, climate, biodiversity. Nor are they aggregators to bring subsidies for cheaper Agri-credit or to solve other social dilemmas. What are they? Cooperatives are enterprises with clear economic and social goals and a shared ownership, long-term value creation, responsible entrepreneurship. Their business needs to be solid, and the basis is a well-functioning stakeholder model.   Times Are Changing The world is undergoing rapid changes – among them climate change, deforestation, lack of water, soil quality, migration, conflicts which leads to structural transformation of the places where we live. While Friedrich Raiffeisen had a keen eye for poverty reduction and created the first credit union in 1864 - the Heddesdorfer Darlehenskassenverein - it was functional within the confines of its time and place. 160 years later we maybe should renew our thinking on cooperatives and ask ourselves do we give them due recognition. In the 1990s there was a lot of attention for microfinance as a way out of poverty reduction, starting with NGOs deploying microcredit programs changing into funds growing into non-bank financial institutions and finally into banks. The ‘peak’ was an IPO of Equity Bank in 2006 and Banco Compartamos in 2007. Microfinance was now seen as a separate asset class to invest in and a purely commercial venture. Was the cooperative sector forgotten i.e. not beautiful anymore? On the contrary; there are more than 43,000 savings and credit cooperatives alive today with 900 million members that reach clients and areas (particularly rural areas) that are unattractive to banks. What characterises them? They provide savings services to their members, unlike most microcredit funds; Savings and credit cooperatives are often started locally, without major external support; Their solid base of small savings accounts constitutes a stable, relatively low-cost funding source; and Well-run savings and credit cooperatives have low administrative costs and offer loans at interest rates lower than those charged by other microcredit providers. Impact and outreach  Our focus and technical support began in 1994 in Indonesia and Vietnam primarily supporting savings and credit cooperatives related to a second tier organisation Bank Umum Koperasi Indonesia (which later on transformed into Bank Bukopin) and in Vietnam the VPB bank for the Poor transformed into VBA, the Vietnam Bank of Agriculture. In Tanzania coffee cooperatives in the north Arusha region formed their own Kilimanjaro Cooperative Bank to provide thousands of farmers access to finance. The KCBL and the Tandahimba Community Bank merged in 2024 into Coop Bank Tanzania. The Cooperative Bank of Oromia in Ethiopia was founded   20 years ago by farmers and today serves almost 15 million clients. Digital services will enable the bank to serve the unserved and is a major step towards transforming Ethiopia’s agricultural sector. And in Sri Lanka the Sanasa Development Bank or SDB serving the co-operative sector was founded in 1997 by the Sanasa movement of 4 million people to finance the unbanked. Learning from these experiences the Dutch NGO ICCO sought us as a partner for the Terrafina Program, reaching out to rural areas and strengthening 20 savings and credit cooperatives around the great Lakes area in six countries in East Africa. Harbu Microfinance Institution in Ethiopia went on to win the European Microfinance Award in 2010. In Brazil the Cresol system was established in 1996 in the state of Paraná, southern Brazil, as an attempt to provide credit and other financial and non-financial services to smallholder farmers in the region. With over EUR 1.5 billion in assets, Cresol is the third largest cooperative group in Brazil. Cresol has a very strong social impact, serving over 25,000 producers with finance adapted to agricultural cycles. It has 70% of its portfolio dedicated to agricultural activities, reaching EUR 1 billion. Savings and credit cooperative Norandino in northern Peru, founded by three agricultural cooperatives in 2005, serves 27,500 members in with a vast range of products including digital/mobile banking. From Cinderella to Queen What can we learn from these examples? What transformation do savings and credit cooperatives have to undertake to stay competitive and serve their members efficient? Governance.  Based on 30+ years of experience, savings and credit cooperatives are usually traditionally governed by a volunteer board of directors, elected by members. Changes in economy, international regulation, laws and markets require adoption of a broader stakeholder model. Especially when you grow as financial institution, supervision of more sophisticated and risky operations require professional managers and a well-trained board. Often there is an imbalance between voluntary board members and professional staff. Renew your stakeholder model and avoid one-size-fits-all solutions. The business cases explained above all have different stakeholder models and different legal structures adapted to their situation. Collaborate, mergers, fusion.  Savings and credit cooperatives have many names around the world, including credit unions, SACCOs, or COOPACs - and typically share a common bond based on a limited geographic area, employer, community, or other connection. But nowadays to be competitive and provide and excellent service to your members investments are needed in IT, HR, digital money, payment services, and insurance. Scale is necessary to fulfil the essential role and stay competitive. One needs to collaborate whether it is to join together to form a second-tier association or to merge with another cooperative or to create a separate bank as a cooperative system. Improve regulation and supervision.   Countries such as Ecuador, Mexico, and Bolivia changed their laws and brought the ‘microfinance sector’ under supervision of the Central Banks. This resulted in a better protection of public savings and setting quality standards for governance and management. Yet, in many countries in the South, savings and credit cooperatives are often supervised by the same government agency that is responsible for all kinds of other (multi- purpose) cooperatives. Those ministries of cooperatives do not have the financial skills and political independence needed to oversee financial intermediaries. Supervising savings and credit cooperatives requires understanding their risk profile and proper supervision. Transform your financial products.  In traditional savings and credit cooperatives, very limited loan products are offered and based on collateral – typically clients’ savings balance. It’s better to provide other loan products based on cash flow of the business and with variation according to risk levels. It’s better to be more flexible and understand the diversity of credit needs, such as working capital agricultural input loans, leasing, warehousing, housing loans etc. Try to use data to develop better instruments to assess and manage loan risk, apply credit scoring tools for risk analysis and offer flexible lines of credit to fund working capital needs. From Donor/Funder…To Partner Partnerships play an important role in the design and growth of cooperative systems. e-MFP members can play an important role in working on rationalising and increasing the impact of cooperative financial institutions in emerging economies who reach hundreds of millions of people. Especially when providing a focus on inclusive financial services for smaller food and agri producers. Combining the cooperative principles with a sound banking structure that allows them to serve large numbers of customers and attract capital from third parties is what we should aim for together. It is not about capital investments.   Going The Extra Mile As e-MFP members we have to put well-functioning cooperatives with huge potential at the heart of a multi-actor partnerships, with organisations such as International Fund for Agricultural Development, Gates Foundation, and the World Bank and employ blended finance to support the transition from a traditional savings and credit cooperative to a modern financial institution with a solid business model contributing to the social and economic challenges of today. There must be equality and equilibrium in the partnerships. e-MFP members can offer access to knowledge, network, financial solutions and innovation, and through our own partners, we have access to 'critical' food and agri markets, we learn from their travels in fast-growing markets and from innovations such as distribution via mobile phones. The cooperative model can and will survive and thrive – but needs reform to keep it relevant for today. It does not have to be perfect; we just have to be truthful to our mission and be good at it. About the Author: Michaël de Groot is Senior investment manager at Rabo Rural Fund. He joined Rabo Foundation in December 1994 after his return from Sudan where he had been doing volunteer work in community banking projects and informal microfinance schemes. Before going to Africa he worked four years with NMB Bank (now ING) where he was engaged in risk management of international loans. At present he is senior investment manager with Rabo Rural Fund for Latin America. This fund ( founded by Rabo Foundation) invests in sustainable Agri & Food supply chains for smallholder producers. Beside these activities he is a member of teams engaged in the development of another social ethical investment fund, a green fund, and micro-finance loans. Michaël has 30 years international experience in co-operative savings and credit systems, village banking and a variety of other types of microfinance institutions with a wide knowledge of issues such as: strategy formulation and (re)positioning, organisational issues, savings and loan policies, membership development, new product design and institution building.

Authors: Sabbir Patel & Matthew Genazzini. In the seventh in our blog series to celebrate the International Year of Cooperatives, Sabbir Patel of ICMIF Foundation and Matthew Genazzini of the Microinsurance Network discuss the role of cooperatives in scaling up inclusive insurance, what these partnerships can look like in practice, and what challenges have to be overcome for cooperatives to reach their full potential in scaling inclusive insurance     When Maria, a small-scale farmer in the Philippines, lost half her rice crop to flooding, it could have been the end of her family’s livelihood. But through her local cooperative, Maria had enrolled in a smallholder crop insurance scheme. The payout she received didn’t make her rich, it simply meant she could replant, repay her loan, and keep her daughter in school. That’s the silent power of inclusive insurance when it’s delivered through organisations people trust. Despite the growing recognition of insurance as a critical safety net, millions of low-income individuals worldwide remain excluded from financial protection. The latest data from the Landscape of Microinsurance , published by the Microinsurance Network , reveals that around 90% of people in low-income countries lack access to insurance, leaving them vulnerable to devastating shocks - whether from illness, climate disasters, or sudden unemployment. For these households, even a minor crisis can push them deeper into poverty, undermining years of hard-earned progress. This is where cooperatives emerge as a powerful solution. Rooted in community trust and built on principles of solidarity, cooperatives have a unique ability to reach populations that traditional insurers often overlook. With 3 million cooperatives worldwide serving over 1 billion members (roughly 12% of the global population) they represent a vast, decentralized network for delivering inclusive financial services.  Their member-driven structure ensures that products are designed with local needs in mind, fostering higher uptake than conventional insurance models.   Why Cooperatives Matter Cooperatives - member-owned and democratically governed organisations - are rooted in communities. They exist not to maximise profits, but to serve the needs of their members . This model makes them especially well-suited to deliver insurance that is accessible, affordable, and responsive to the realities of low-income households. Cooperatives are built on mutual trust and shared interest.  They often emerge from the community itself, meaning they speak the language (literally and culturally) of the people they serve. For low-income populations who may distrust commercial institutions or lack awareness on the benefits of insurance, this can make all the difference. Furthermore, the International Labour Organization (ILO) underscores their role in advancing the Sustainable Development Goals (SDGs) through a paper entitled Cooperatives and the Sustainable Development Goals ( ILO Coops SDGs 2014 ), particularly in reducing poverty (SDG 1), gender inequality (SDG 5), and climate vulnerabilities (SDG 13). Cooperatives are also inherently inclusive. Many offer bundled services - savings, loans, financial education, and insurance - creating integrated safety nets and promoting a holistic approach to managing risks. They often prioritise women, smallholder farmers, informal workers, and other groups typically excluded and marginalised from mainstream financial services. Examples From The Field In the Philippines, CARD Mutual Benefit Association , part of the CARD MRI cooperative group, serves over 8 million members, most of whom are low-income women. Their insurance offerings include life, disability, and calamity protection. Beyond financial services, CARD invests in community education, disaster preparedness, and healthcare access - an integrated approach that builds both resilience and dignity. Meanwhile in India, the DHAN Foundation has developed a grassroots, community-based model for providing services to the low-income underserved communities. Through its People Mutuals  initiative, DHAN has established locally based mutual federations to design, deliver, and manage its life and health mutual insurance products, while also providing risk awareness and risk prevention advice. To date Dhan Foundation has reached over one million households with mutual insurance though its unique community-based approach. Dhan is now introducing mutual crop insurance coverage to small scale farmers already part of its network. These are not isolated examples. Across Latin America, Asia, and Africa, cooperative and mutual insurers have become central actors in financial inclusion  and their reach is significant.  The members of the International Cooperative and Mutual Insurance Federation  (ICMIF), which is a global network of cooperative and mutual insurers committed to values-based insurance and sustainable development, serve alone over 350 million policyholders globally, many of whom are in low-income or underserved segments. Challenges That Stand In The Way Despite their strong performance and social mission, cooperatives face many challenges in scaling up inclusive insurance: First, regulatory frameworks in many countries don’t always accommodate non-traditional distribution partners  and cooperative and mutual insurance models. Licensing requirements, solvency standards, and reporting obligations may be designed for large commercial players, unintentionally excluding smaller community-based insurers. Second, access to reinsurance and capital remains limited for many cooperatives , particularly those in developing markets. Without adequate risk-sharing mechanisms, these organisations struggle to expand their coverage and/or withstand from catastrophic events. Third, digital transformation can be a challenge.  While cooperatives have deep local roots, they often lack the technical infrastructure or investment capital to adopt mobile platforms, data systems, and digital claims processing tools - technology that can make insurance cheaper, faster, and more accessible. Finally, education and awareness are ongoing needs.  Insurance remains a complex and sometimes misunderstood product. For many low-income individuals, the concept of paying now for a future risk that may or may not occur is unfamiliar, and even counter intuitive.   Unlocking The Full Potential To harness the full potential of cooperatives in expanding inclusive insurance, a multi-stakeholder effort is required, which cuts across several key areas: Enabling environment : Policymakers and regulators can help by adapting legal frameworks to recognise the value and structure of non-traditional distribution partners as well as mutual and cooperative insurers. Proportionate regulation, which is tailored to the size and risk profile of community-based entities, can promote innovation while safeguarding stability. Investment in capacity and technology : Cooperatives need access to affordable digital tools, risk modelling, and data systems. Partnerships with fintechs, development agencies, and reinsurers can accelerate modernisation. Financial infrastructure : Access to reinsurance markets, climate risk pools, and technical assistance is essential for resilience. Donors and development finance institutions can play a catalytic role. Finally, knowledge sharing and peer learning : Platforms like the Microinsurance Network  and ICMIF  facilitate critical exchange between the various stakeholder (cooperatives, insurers, researchers, regulators, etc.) spreading lessons learned and amplifying best practices. Cooperatives are uniquely positioned to build trust and explain value, but they need support to do it effectively. A Human-Centred Model For Resilience At its heart, cooperative insurance is about people helping people. It’s about turning shared risk into shared strength. In the face of disaster, illness, and other financial shocks, a well-designed insurance product can mean the difference between recovery and ruin. And cooperatives can foster not just coverage, but resilience, dignity, and community cohesion. As the world grapples with compounding risks stemming from climate change, economic volatility, and widening inequality, the need for inclusive, community-rooted insurance models has never been clearer. Cooperatives represent one of the of the most powerful stakeholders to improving the resilience of low-income populations, and one that has proven success throughout the world. About the Authors: Sabbir Patel joined ICMIF in 1996 and has held a variety of roles spanning finance, development, and emerging markets. He became Managing Director of Allnations Inc. in 2004, leading investments in Africa and Latin America, and in 2005 was appointed Senior Vice-President, Emerging Markets and CFO. He has led key initiatives including microinsurance seminars, Takaful sector collaborations, and the creation of a global microinsurance training tool. Sabbir also contributed to international regulatory work on mutual microinsurance with the IAIS. Since 2015, he has served as CEO of the ICMIF Foundation, overseeing the 5-5-5 Mutual Microinsurance Strategy, which has provided protection to over 17 million people. In 2022, he helped launch the UNDP ICMIF Innovation Insurance Challenge. He is a Fellow of the Chartered Certified Accountants (FCCA), holds a Master’s degree from the Institute of Development and Policy Management in Manchester, and a CII Diploma in Insurance. Matthew Genazzini has 15 years of experience in development finance and inclusive insurance and is the Executive Director of the Microinsurance Network. He has a BA in Contemporary History from the University of Sussex and an MA in Latin American Studies from the University of London. He has significant experience in the inclusive finance sector with ADA – Appui au Développement Autonome, managing capacity building and product diversification projects for financial institutions, with a particular focus on microinsurance. In 2017, Matthew managed the Technical Support for MFI’s unit in ADA, which aimed to strengthen financial institutions through the provision of financial and technical assistance services, and in 2020, he changed position and launched the Smallholder Safety Net Up-scaling Programme (SSNUP), a public private development partnership aiming to strengthen the resilience of smallholder farmers by promoting investments in the agricultural sector. In parallel, Matthew joined the board of the Microinsurance Network in 2019 and later, in October 2024, become the director.

Author: Oikocredit. In the fifth in our blog series to celebrate the International Year of Cooperatives, Oikocredit shares lessons from five decades of supporting cooperatives, what makes them unique, and what we can learn from one of the largest client surveys in the impact investing industry. “Cooperatives build a better world” is the rallying cry of the UN’s International Year of Cooperatives. Running throughout 2025, it calls attention to the role of these member-owned businesses in reducing poverty, building economic resilience and creating inclusive, sustainable development. But slogans aside, what does “better” actually feel like to small-scale farmers in Africa or business owners in South America? Cooperatives are well placed to answer that question, as inherently democratic organisations with members that jointly set policies and make decisions. Enshrined in their structure is a responsibility to act in members’ best interests: by being transparent, equitable and accountable.   In other words, they do this by driving concrete improvements in the daily lives of their communities. As former UN Secretary General Ban Ki-Moon put it , “Cooperative endeavour is about empowerment, inclusion and sustainability…no-one should be left behind.”     Building Financial Stability, One Investment at a Time   As an impact investment cooperative, Oikocredit has understood the crucial role financial stability plays in improving lives and livelihoods for 50 years. From our founding in 1975, when the world was facing apartheid in South Africa and the ravages of the Vietnam War, a group of church activists took practical steps to improve people’s lives. Their action strategy was to pool investments into a cooperative and then put that money to work for communities outside the reach of mainstream banks.   The results of this alternative investment approach have been proven repeatedly over the years. Within a few years, development organisations had acknowledged the importance of “banking the unbankable”.  Since then, Oikocredit has built on this momentum.   Over the past five decades, it has disbursed EUR 5.8 billion to support 2,240 partner organisations across 75 countries, helping extend access to finance for millions of people who live on low incomes, particularly women and rural communities.     Tracking Hard Metrics for Investor Clarity   Another common question has motivated Oikocredit over these years: how could we track the impact of our work?  Aside from being recognised by the development finance sector, how can we truly ascertain that investors’ capital wasn’t just moving money, but actually moving lives? The need to measure our outreach and its on-ground effects led us to launch the Outcomes Programme in 2014 . We did so to create a structured accountability, but also to provide our investors and partners with clarity and corroboration. After all, transparency is fundamental to a cooperative’s work.   The Outcomes Programme has helped 25 partners build outcome tracking into their own systems, encouraging long-term ownership. It has shown the importance of integrating widely dispersed – and often siloed – data in a systematic way. A second learning was the need for stronger staff support to measure what really matters. Third, it has shown the need for tools to support data collection and visualisation.   Armed with these lessons and supported by buy-in from their partners, Oikocredit went one step further in 2021, launching the Client Self Perception Survey .  The collaborative programme is the biggest exercise of its kind and reflects Oikocredit’s cooperative spirit. Not only are questions tailored to each partner’s specific needs, but it also means we can discuss available data collection options and offer our partners a choice of method, to align with their capacity and interests. Survey results are analysed together with complementary internal information from partner organisations, combing both external data and internal knowledge work together to inform understanding.   By listening to end-clients on key areas such as business, savings, health, education and digital access, the programme helps partners tailor services to improve client outcomes . It also strengthens Oikocredit’s ability to report on outcomes and impact to investors, our cooperative members, leadership and our board.   Perhaps most important, the process of talking to micro-borrowers, people on low incomes and other end-clients identifies future action areas, enabling partners to adjust their strategies and interventions to better achieve their aims. Oikocredit also works with partners to improve their products and services in response.   Designing Financial Services in Cooperation with Stakeholders  Armed with firsthand feedback from this cooperative learning platform, organisations can tailor their services – for example offering financial education, flexible loans or weather insurance – instead of following a one-size-fits-all business model.   The 2024 edition of the survey asked more than 48,000 of Oikocredit’s partners’ customers how their lives have been affected, and more than 80% reported their lives had improved thanks to support from partner organisations – many of which are cooperatives. For these people, “better” translates into things like higher household savings, increased income, and being able to cope with unexpected expenses . These gains are the essence of “better” for many: having a secure way to save means that families can handle health bills or emergencies without sinking deep into debt.   One representative finding was that clients who built up any savings were much better able to manage medical costs and emergencies such as crop failures.  So ‘better’ banking, for them, means real financial resilience . It means putting food on the table, keeping children in school, or not worrying about a sick family member.   “Better” for cooperative communities, then, means more income and savings, greater resilience and supportive services tailored to real needs . It also means lower costs and higher trust, as we see with cooperative-style solidarity groups: surplus funds are often reinvested, deepening both financial and social return.   “Better” can also mean other kinds of support. For example, people with access to clean energy (through the cooperative process) reported higher incomes and quality-of-life improvements:  solar power at home, irrigation pumps for farmers, or training programmes.   Worrying, but rather unsurprising, was the impact of extreme weather.  The results of climate change continue to have a disruptive effect on many clients’ earning abilities. With a majority (76%) of those who were asked about climate change experiencing income disruption, there is a pressing need for climate-resilience programmes.   Survey insights  have led to practical action. Some organisations partners have rolled out environmental performance training and launched climate resilience measures, including local weather alerts, financing for water infrastructure, and tailored loans for farmers. Others are rolling out digital and financial literacy sessions, automating loan processes to cut wait times and exploring ways to support better household water and sanitation outcomes.   We Must Put Real-time Needs at the Heart of Inclusive Finance   As a cooperative, Oikocredit understands that for the people we and our partners serve, “better” is tangible: it’s having enough savings to face a crop loss, being able to improve a small business or knowing the bank is on their side. By gathering feedback and focusing on those real-world goals, cooperatives can measure their own success by client success. They can live up to the promise of doing finance differently: putting people first and pumping resources back into making members’ lives better.   In this International Year of Cooperatives, “better” means putting people’s needs at the heart of inclusive finance. When thousands of people say, “we’re getting better,” the whole financial system can become stronger and more resilient. And when we truly listen and reinvest into the communities we serve, we sharpen our impact and build durable trust on the ground, ensuring no one is left behind.    See what more than 48,000 clients can teach us about impact in Oikocredit’s latest Client Self-Perception Surve y. Photo source: Oikocredit About the Author: Oikocredit is a social impact investor and global cooperative celebrating 50 years of impact investing in 2025. Since 1975, Oikocredit has provided funding to organisations active in financial inclusion, agriculture, renewable energy, and community resilience. Through loans, equity investments, and capacity building, Oikocredit supports partners across Africa, Asia, and Latin America to improve the lives of low-income people sustainably. As of 31 March 2025, Oikocredit has over 46,000 investors and finances 472 partners with a development financing portfolio of €1,045.2 million. For more information, visit:  www.oikocredit.coop

Author: Gevorg Aboyan, Jinishian Memorial Foundation. In the fourth in our blog series to celebrate the International Year of Cooperatives, Gevorg Aboyan from Jinishian Memorial Foundation (JMF) explains JMF’s 20+ year history of developing Agricultural Cooperatives in Armenia, the challenges it has faced; innovations tested – and what JMF sees as some lessons for the broader cooperative movement. Across Armenia’s mountainous landscapes, agriculture remains a vital pillar of rural livelihoods. Yet in the post-Soviet era, smallholder farmers faced an uphill battle — fragmented land ownership, weak market access, outdated agricultural practices, and limited financial resources have kept many in cycles of subsistence and vulnerability. Against this backdrop, the Jinishian Memorial Foundation (JMF) has spent over two decades nurturing a quiet revolution in rural economic life: the emergence of strong, sustainable Agricultural Cooperatives (AC) . Since 2003, JMF’s mission has been clear — to empower farmers to move from isolated struggle to collective strength, helping them build cooperative organizations that generate shared economic benefits, improve living standards, and foster social solidarity in their communities. Building the Foundations: 2003–2006 Recognising the historical mistrust of “collectivised” models inherited from the Soviet era, JMF began its work with patience and vision — supporting voluntary, farmer-led ACs grounded in democratic principles and economic transparency. In partnership with the United Methodist Committee on Relief (UMCOR), JMF launched the Support Program for Farmer Organizations in Armenia  in 2003. The objectives were ambitious: to improve farmers’ economic conditions; to facilitate the formation of ACs; and to strengthen cooperative governance and operational efficiency. By 2006, nine ACs were established, uniting 522 farmers — an important first wave of organised rural producers. Crucially, the program also delivered intensive capacity-building: cooperative management, member rights and responsibilities, financial planning, taxation, record-keeping, agribusiness skills, and animal husbandry were all on the training agenda. Scaling Knowledge and Practice: 2005 and beyond As ACs gained experience, JMF and its partners recognised that technical training was essential for lasting success. From 2005, with support from the Federation of Regional Associations Uniting Agricultural Cooperatives, the program expanded — now reaching 23 ACs and 1,500 farmers. Over this time, the curriculum has broadened to include agro technology, plant protection, veterinary services, agribusiness management, and legal frameworks — giving cooperatives the knowledge to navigate complex markets and policy environments. JMF also provided grants and low-interest credit , enabling ACs to invest in equipment and services that improved productivity and income. As always, JMF continued to contribute to a new phase of cooperative development through its work. Many cooperatives were not only strengthened internally, but new cooperatives also emerged , inspired by the success stories of old cooperatives   Integrating Sustainable Natural Resource Management In 2012–2013, as the importance of sustainable resource management grew, the Community Pasture/Livestock Management System component was launched. Training sessions were held in 55 rural communities throughout Armenia, benefiting over 5,800 farmers. This broadened the cooperative movement’s relevance, positioning ACs as actors not only in local economic life but also in environmental stewardship — managing pastures and livestock with greater efficiency and care. Navigating Challenges: Governance and Power Dynamics While many Armenian cooperatives have done really well thanks to established rules and governance, there are still some challenges to overcome, many of which are linked to our historical experience. First, despite democratic governance structures (with elected leadership and decision-making via general assembly), traces of Soviet-era administrative culture sometimes persist : centralisation of power, top-down leadership, and hierarchical tendencies, gradually eroding trust and participation. Second, external support has diminished. When cooperatives benefit from this — such as grants, technical assistance, or new investment — energy and engagement surges. However, as external resources diminish, risks emerge, such as assets control by the leadership elite, poor transparency, and decline in member involvement . This is a dynamic familiar to cooperative practitioners worldwide. Genuine, lasting success requires not only technical skills and financial resources, but also cultural change  — fostering habits of transparency, accountability, and shared responsibility. Fostering Innovation and Social Impact: A New Chapter Recognizing these dynamics, JMF has pioneered new approaches to strengthen cooperative cohesion and embed social values . Over nine years up to 2020, JMF, in partnership with a credit organisation, provided subsidized, low-interest loans to members of approximately 27 agricultural cooperatives. However, this initiative was developed with a unique social twist: each year, a portion of the loan interest payments is pooled into a Social Solidarity Grant Competition. Through this program, cooperatives compete for funds to implement projects that benefit the wider community , turning healthy competition into a tool for social innovation. These projects include building playgrounds, digging wells, installing street lighting, renovating public parks, and more. Toward a European Cooperative Model: The Road Ahead Looking forward, Armenia’s cooperative movement stands at an important crossroads. To achieve higher levels of efficiency, transparency, and sustainability, cooperatives would benefit from learning from the most successful models in Central and Eastern Europe, where countries emerging from socialist legacies have built thriving cooperative sectors through modern governance, professional management , and clear separation of member and leadership roles . We believe that JMF’s experience shows that Armenian cooperatives can develop in a way where leadership prioritizes the membership, internal fragmentation is minimised, and economic performance is both robust and inclusive. Lessons for the Global Cooperative Movement JMF’s two-decade journey offers valuable lessons for the broader cooperative and microfinance community: Cooperative development is a long game — requiring sustained investment in people, skills, and relationships; Governance and culture matter as much as technical know-how; Blending economic and social incentives can generate deeper engagement and solidarity; and Local ownership and adaptation — not one-size-fits-all models — are key to success. The seeds of change have been planted. The next chapter will rely on enhancing cooperation, building trust, and welcoming innovation, lessons that apply well beyond Armenia’s borders. About the Author: Gevorg Aboyan is Community Development Project Coordinator at JMF. Gevorg has been a member of the Jinishian Foundation since 1999, where his extensive experience plays an integral role in the organization’s mission. He coordinates and promotes the foundation's strategic initiatives aimed at fostering community development across diverse projects.

Authors: Douglas P. Daura & Nihar Jangle, GIZ. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 6th piece in the series, Nihar Jangle and Douglas Daura discuss the risks faced by Zambian smallholder farmers, and how their resilience to shocks can be mitigated by weather index-based crop insurance embedded into contract farming models. For Zambia’s smallholder farmers, the risks of farming have always been high. But in recent years, the stakes have risen dramatically. Climate change has brought erratic rainfall, extended dry spells, and sudden floods – threatening not just harvests but livelihoods. For many rural households, a single bad season can mean selling assets, pulling children out of school, or going hungry.   Since 2017, GIZ – on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) – has been supporting innovative models to address this challenge, most notably by embedding weather index-based crop insurance   into Zambia’s agricultural value chains . The most promising of these models relies on contract farming as a delivery mechanism – an approach that strengthens both financial protection and production systems. What Is Contract Farming? Contract farming  is a formalised partnership between smallholder farmers and agribusinesses, typically structured around forward agreements. These contracts specify the type and quantity of crops the farmer will produce and deliver, while the buyer – usually an off-taker – commits to purchasing the harvest, often at a predetermined or market-linked price.   In many cases, buyers also provide so-called embedded services  to farmers at the start of the season – such as seeds, fertilizer, crop protection products, technical advice, and credit. These inputs are typically repaid at harvest through deductions from the farmer’s sales proceeds. The arrangement helps smallholders access essential inputs and reliable markets, while buyers benefit from a more consistent, higher-quality supply. In Zambia’s cotton sector in particular, contract farming has become a key model for structuring smallholder production. It also provides a natural entry point for bundling financial services such as insurance. Embedding Insurance into Contract Farming A leading example is Louis Dreyfus Company (LDC) Zambia , a contract farming operator working with thousands of smallholder cotton producers. In a partnership with GIZ and local insurers, LDC integrated weather index-based crop insurance  into its input support package. The insurance covered drought and excessive rainfall – especially during the critical germination and flowering phases. Rather than relying on costly, case-by-case loss assessments, payouts were triggered automatically when rainfall data (based on remote sensing) crossed pre-agreed thresholds. This made the model efficient, scalable, and transparent.   To remove financial barriers, LDC Zambia pre-financed the insurance premiums , recovering the cost after harvest. When a payout was triggered, LDC deducted any outstanding input loans and passed the remainder to the farmer. This ensured that farmers weren’t left with debt after a failed season – and could re-invest in the next one.   Over time, the bundled product has grown to include life insurance , providing a modest funeral benefit in the event of a farmer’s/beneficiary’s death. Initially met with scepticism, this addition has proven valuable and welcomed by farming families. It reinforced trust between farmers and LDC and strengthened the appeal of the overall package.   Field feedback showed clear benefits. Farmers who were insured were more likely to take up inputs, expand their cotton acreage, and deliver their harvests to LDC, rather than side-selling. For LDC, this meant reduced default risk, improved supply chain stability, and stronger farmer loyalty – a win-win for both sides. Beyond Contract Farming: Engaging Other Aggregators While contract farming offers an effective distribution model, it is not the only one. GIZ also supported insurance delivery through a range of aggregators:   Microfinance Institutions (MFIs):  VisionFund Zambia bundled weather index and livestock insurance with loans. The premium was integrated into the loan, and payouts could help clients repay in bad seasons – protecting both borrower and lender. Seed Companies:  Firms like Pioneer and Monsanto have offered weather insurance bundled with maize seed packs. This approach protected against early-season risks such as drought during germination and served as a marketing incentive. Cooperatives and SACCOs:  Community-based savings and credit organizations were also being explored as channels for distributing insurance and climate information, particularly in areas where contract farming was less prevalent.   Across all these models, a common insight has emerged: aggregation is essential . Whether through off-takers, lenders, or farmer groups, trusted intermediaries reduce transaction costs, improve communication, and drive uptake. Lessons Learned and Looking Ahead After nearly a decade of experimentation and implementation, a number of key takeaways stand out:   Pre-financing premiums  – by aggregators – solves a major access barrier for low-income farmers. Bundling insurance with existing services  (inputs, credit, training) improves value for money and makes insurance more relevant to farmers’ real needs. Farmer education and trust-building  are essential. Sensitisation through printed materials, local language campaigns, mobile messaging, and face-to-face interaction all matter. Insurer capacity  remains a bottleneck. Long-term technical assistance and skills transfer are needed to build local expertise in product design, pricing, and claims management. Data and digital tools  offer untapped potential for improving product design, reducing basis risk, and reaching scale.   So far, GIZ-supported schemes have reached thousands of farmers across Zambia through multiple partners. Training materials and awareness campaigns in English, Tonga, Bemba, and Nyanja have broadened understanding and demand. But the real opportunity lies ahead: scaling what works, refining what doesn’t, and embedding these tools more deeply into Zambia’s financial and agricultural systems.   As climate shocks become more frequent and severe, weather index-based insurance – when distributed through trusted, farmer-centric models like contract farming – offers a proven path to strengthening resilience, reducing vulnerability, and building a more secure future for rural households.    This blog reflects the experiences of projects implemented by GIZ and commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ). For more information, contact nihar.jangle@giz.de  or douglas.daura@giz.de Photos: GIZ About the Authors: Dr. Nihar Jangle has 15 years of experience in Climate and Disaster Risk Finance and Insurance (CDRFI), with a proven track record of successful implementations across multiple countries.   Nihar Jangle has been with GIZ Germany since 2017. He is currently heading the Risk Finance & Insurance Team at GIZ, implementing CDRFI solutions on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) in partner countries, in addition to advising the ministry.   From 2010 to 2017, Nihar Jangle was Director of the Climate Change Program at the Micro Insurance Academy in India, heading a multi-year initiative on inclusive insurance solutions for climate-related risks, including health, crop, livestock and natural catastrophes. This work experience led to several publications in peer-reviewed journals. Nihar’s work was recognized with the 2016 Shin Research Excellence Award bestowed by the Geneva Association and the International Insurance Society (IIS).   Nihar Jangle holds a doctorate degree in mathematics from Free University Berlin and served as Visiting Scientist at Brown University, USA, for two years. After finishing his degree, he worked with a consulting firm in Germany’s financial sector, focusing on risk management for major German banks.   Douglas P. Daura   is a seasoned agricultural finance and climate risk insurance expert with over a decade of experience driving inclusive solutions for smallholder farmers in Zambia. As Senior Advisor for Agricultural Finance & Insurance under GIZ’s AgFIN project, where he supported financial institutions, agribusinesses, and government partners in designing and scaling innovative financial products tailored to the needs of rural communities. Douglas played a pivotal role in the implementation of the Climate Risk Insurance and Information in Zambia (CRIIZ) project, which expanded weather index-based crop insurance across Zambia’s agricultural value chains. His leadership contributed to the delivery of over 30,000 climate risk insurance policies—30% of them for women—and the integration of climate risk insurance into contract farming arrangements with companies like Louis Dreyfus Company Zambia ( develoPPP.de project). His work helped ensure farmers had access not just to insurance, but also to climate information, financial training, and input services, strengthening both resilience and productivity. Douglas is currently working under Climate Resilient Agri-Food systems (CREATE) under the private sector development - project co-financed by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ). Implementing the ENTERPRISE Zambia 2.0   Douglas holds a BSc in Agricultural Sciences from the University of Zambia and brings a strong background in agronomy, insurance underwriting, and stakeholder engagement. He is passionate about developing scalable, farmer-centric insurance models and continues to drive efforts that embed climate risk tools into Zambia’s broader development and finance systems.

Author: Craig Churchill, ILO. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 5th piece in a series of blogs that we’ll be running throughout the year on this topic, Craig Churchill, head of ILO’s Impact Insurance Facility, argues that driving insurance uptake must be secondary to its real purpose – building resilience – and that this can really only be achieved with a holistic approach, leaning on integrated solutions that bundle insurance with other products.   Farmers participating in the National Agriculture Insurance Scheme in Rwanda meet with representatives from the insurer Radiant Yacu. When I first heard that the theme for this year’s European Microfinance Award was insurance, I must admit that I had mixed feelings. One the plus side, I have been working on this topic since the last century, so it is nice that is finally getting some recognition. Often insurance is an afterthought, only surfacing in the financial inclusion conversation once discussions about savings and credit have been exhausted. So for insurance to be the focus of this prestigious award, it somehow validates the work that the International Labour Organization  has been doing on inclusive insurance over the years. My enthusiasm was tempered somewhat, however, because I would have preferred for the emphasis to be on the first half of the award title – building resilience.  This is really the objective, isn’t it? The development community is talking about insurance not because we want more low-income households to be paying premiums, but because we want them to be better protected. Insurance can certainly contribute to this agenda but so do other financial and non-financial services. I think the real excitement, and impact, occurs when we bring together a toolbox of services to solve specific problems. The European Microfinance Award did that in 2019 when it looked at how the financial inclusion community was innovating to help solve the climate change crisis . It did it again in 2021 when it considered how financial service providers (FSPs) could contribute to improved health outcomes . In both cases it was clear that insurance can play an important role, but it is just one tool in the toolbox. So while I am keen to be talking about insurance, and to learn about the exciting innovations that are occurring across the globe, I am even keener to understand how they are building resilience and reducing the vulnerability of the working poor. To do so, I believe FSPs need to take a holistic view of their clients’ risk management needs and design a package of financial and non-financial services that can address those needs appropriately. Based on some work  that the ILO has been undertaking in recent years, I want to highlight a few of the lessons that we have been learning.   Anchoring The Solution On Savings The starting point with any effort to provide protection is to ensure clients are enrolled in the relevant social security schemes. Then financial services can fill in any gaps around what is provided by the government. We often see this with national health insurance schemes that cover much of the treatment costs, and then inclusive insurance being used to provide per diem benefits through a hospital cash product, or to cover co-pay costs or pharmaceuticals. To fill these gaps, FSPs could offer the various elements – savings, insurance, emergency loans and financial education – as separate, standalone elements. Alternatively, they could explore ways of integrating them to provide a more comprehensive risk management solution. This approach may facilitate marketing and administration for the FSP, while providing solutions that enable low-income households to rely on low and medium stress coping mechanisms. Building integrated solutions relies on using savings as an anchor, which has three main advantages over credit as the entry point. First, most people need savings and hence savings-linked products can appeal to a wider pool of clients, not just the subset of people who borrow money. Second, savings products typically have a longer duration, providing a platform for FSPs to offer more permanent protection and build customer loyalty. If loans were the anchor, what would happen when the loan term ends if the client is not ready to re-enrol immediately? Third, taking a loan is risky for borrowers to begin with, so it is incongruent to think that a risk-management solution could be built on a risk-taking activity. Hence, combining products that allow households to turn assets or equity into cash may be an appealing solution. For example, rather than drawing down on a contractual savings account during a time of need, people may prefer to borrow using their accumulated savings as collateral. Bundling an emergency loan product with a contractual savings account allows clients to cover small expenses and smooth consumption, although these need to be managed carefully to avoid over-indebtedness.   Where Does Insurance Fit In? Insurance then fits into the discussion to cover risks resulting in large expenses that cannot easily be covered out of savings and emergency loans. The death of a breadwinner certainly falls into this category, as do major disruptions to livelihoods, perhaps caused by droughts or floods, fire or theft. The business model for stand-alone inclusive insurance products can be challenging, which is why insurance is often bundled with another financial service – with loans, savings accounts or payments. As mentioned above, in the interests of building resilience, linking insurance to savings is likely to be the most impactful. Focus group discussion held in Abidjan, Côte d’Ivoire, with potential inclusive insurance clients, as part of the Impact Insurance Facility’s training on 'Market Research for Inclusive Insurance.' But bundling insurance comes with its own challenges that need to be addressed . Since people are often not seeking out insurance but rather are getting it along with their savings account (or their loan, or their agricultural inputs, or their cell phone minutes), they may forget that they have it. So when insurance is bundled, extra effort is required to ensure that the persons covered (or their beneficiaries) know what is covered and know how to claim.   Design Considerations For Integrated Solutions The process of providing integrated risk management support to low-income households, small businesses and the working poor is not easy. The following are some design considerations that FSPs need to keep in mind when offering such solutions: Mix and match . Financial institutions should complement what is available from the government and from social service providers with financial services that manage risks. The starting point is to enrol in whatever government programmes are available and targeted at the population in question. Savings partnerships . Not all financial institutions are permitted to mobilise deposits. For example, to offer integrated risk management solutions, microcredit NGOs will need to partner with organizations that can take savings, like banks or mobile network operators (MNOs). When considering prospective partners, it is essential to assess the levels of service that they are willing and able to provide. If the process of making deposits is not seamless, then it will be difficult for low-income households to amass any significant sums. Plus, if the partnership results in a negative customer experience, the FSP that is the face of the savings solution to the customer will suffer the consequences. Carrots and sticks . It is quite natural that the preparation for risk management does not always get the most attention in a household’s financial planning. To ensure that the preparation activities are sufficiently emphasized, it is important to offer a heavy dose of incentives to reward good behaviours of making regular deposits and signing up for insurance. Similarly, to prevent the use of funds for purposes other than risk management, early withdrawal penalties may also be in order. Staff implications . The introduction of new services might significantly impact the job descriptions and workload of frontline staff. If staff perceive this as extra work without sufficient compensation, it will be doomed to fail. Similarly, if staff incentives are tied to loans without any key performance indicators for savings and insurance, then the field staff will naturally focus their attention on the lending activities at the expense of effective risk management solutions. Digital solutions . The business case for small deposits and small-ticket insurance policies can be challenging in an all-cash economy. But the emergence of mobile money and the digitization of back-end processes create new opportunities to reach scale in a cost-efficient manner. Digital technology can be leveraged to educate clients about the integrated solutions, enable cross-selling through direct sales to customers, facilitate payments and reduce transaction costs.   The financial inclusion community should be laser-focused on developing and testing solutions that build the resilience of low-income households, smallholder farmers, microentrepreneurs and the like. By combining savings, credit and insurance, along with relevant non-financial services, FSPs can offer solutions that reduce the vulnerability of their clients. And if their clients are more resilient, they will be as well. Photos: ILO   About the Author: Craig Churchill is chief of the Social Finance Programme and the team leader of ILO's Impact Insurance Facility. He has more than two decades of microfinance experience in both developed and developing countries. In his current position he focuses on the potential of financial services and policies to achieve social objectives. He serves on the governing board of the Access to Insurance Initiative and was the founding chair of the Microinsurance Network.

The CoopStar initiative, and other reflections from the BRS Microfinance Lunch Break Author: Bart Speelman, BRS. In the third in a new blog series to celebrate the International Year of Cooperatives, Bart Speelman from BRS presents selected insights from the recent Microfinance Lunch Break event in March, part of BRS’ own work for the International Year of Cooperatives, including updates to the pan-African CoopStar project. Celebrating the International Year of Cooperatives in 2025, BRS hosted a special edition of its Microfinance Lunch Break series on March 26th. The event brought together leading voices in cooperative development to explore a critical question: Are cooperatives fit for purpose in accelerating a sustainable transition in Africa? The session featured Professor Patrick Develtere  of the University of Leuven, a renowned scholar on international cooperation, and Joseph Njuguna , Director of Policy at the International Cooperative Alliance (ICA). Together, they offered a compelling portrait of how African cooperatives are not only evolving but increasingly pivotal to achieving the Sustainable Development Goals (SDGs).   Defining the Cooperative Identity The discussion began with a fundamental question: What is a cooperative?  The speakers defined cooperatives as autonomous associations of people who voluntarily unite to meet common economic, social, and cultural needs  through a jointly owned and democratically governed enterprise. This definition, rooted in values of self-help, democracy, equality, and solidarity, is what gives cooperatives their unique identity. Professor Develtere revisited themes from the landmark 2008 study “Cooperating Out of Poverty: The Renaissance of the African Cooperative Movement,”  highlighting how cooperatives have historically empowered communities to drive their own development. Joseph Njuguna emphasized that cooperatives are not just economic units; they are people-centered organizations  that foster local resilience and inclusive participation.   The CoopStar Study: Updating the African Cooperative Narrative Central to the event was the presentation of preliminary insights from the ongoing CoopStar project ( Cooperatives for Sustainable Transformation in Africa ), a comprehensive update to the earlier research. Covering 20 African countries, this ambitious study is assessing how cooperatives can support the transition to a green, circular, and sustainable economy, particularly in light of climate change, economic inequality, and growing development pressures. Key Highlights from CoopStar Explosive Growth : Africa is home to an estimated 500,000 to 600,000 active cooperatives with over 100 million members, representing roughly 14% of the continent’s population. This makes cooperatives a potentially transformative force across multiple sectors. Diversifying Sectors : Traditionally strong in agriculture and financial services, cooperatives are now branching into healthcare (Uganda), ecotourism and transport (Cabo Verde and Rwanda), mining (DR Congo), housing (Senegal), manufacturing (Morocco and Egypt), and waste management (South Africa). Kenya’s Example : Kenya stands out for its dynamic cooperative ecosystem, supported by a dedicated government ministry, the Cooperative University of Kenya, and digital tools such as M-Pesa. Cooperatives in Kenya contribute a remarkable 30–35% to national GDP. Innovation in Senegal : The U-IMCEC cooperative in Senegal connects rural communities with agricultural producers, and its agrifinance unit is actively promoting sustainable practices like reducing pesticide use and improving water efficiency.   The Evolving Landscape: Strengths and Challenges The presenters were clear-eyed about both the promise and limitations  of cooperatives on the continent. The CoopStar study sheds light on several trends shaping the movement today: Enabling Environments and Legal Reforms Many African countries are modernizing their legal frameworks to support cooperative growth. These reforms enhance transparency, governance, and accountability, enabling cooperatives to scale their impact. A New Generation of Leaders A wave of young, dynamic, and increasingly female leadership is revitalizing the cooperative sector. These leaders bring entrepreneurial energy and innovation to traditionally conservative institutions. Towards Self-Reliance One of the most striking findings is the rise of self-financing cooperatives, which are increasingly using local resources and community investment rather than relying on government subsidies or foreign aid. Cross-Sectoral collaboration There is a notable uptick in cooperation among cooperatives and partnerships with other social economy actors. This interconnectivity is helping build ecosystems that are capable of tackling complex social and environmental issues.   Sustainability: From Buzzword to Practice Sustainability was the cornerstone of the event. African cooperatives are increasingly aligning their missions with environmental stewardship , economic inclusion, and community resilience. The shift from rhetoric to action is visible across sectors: Climate Change Mitigation : Cooperatives are implementing reforestation projects, promoting climate-smart agriculture, and introducing drought-resistant crop varieties. Circular Economy Models : Waste management cooperatives are pioneering new ways to handle recycling and composting, reducing pollution and generating employment. Digital Innovation : Ghana’s Asusu cooperative software is an example of how digital platforms are supporting cooperative governance and service delivery. Self-Critique and Accountability : Cooperatives are increasingly aware of their own environmental footprints and are adopting internal reforms to reduce harm and model sustainable practices.   Building Political Influence Despite their achievements, cooperatives still struggle to gain political visibility . As Professor Develtere noted, while they are increasingly vocal, cooperatives are not yet at the center of policymaking discussions. Joseph Njuguna emphasized the importance of grassroots mobilization  to influence policy from the bottom up, ensuring that cooperative priorities are reflected in national and regional development plans.   What’s Next? From Research to Action The final part of the webinar looked toward the future. Once the full CoopStar study is published in summer 2025, the findings will inform a series of national dialogues in participating countries. These forums will engage cooperative members, government stakeholders, and civil society in shaping the role of cooperatives in sustainability transitions. A broader international debate is also planned, advocating for policies that reflect cooperative realities and scale up successful models across the continent.   BRS's Commitment and Upcoming Events As a key actor in the cooperative microfinance landscape, BRS is actively supporting these conversations. With strong partnerships in Senegal and Uganda, BRS is facilitating exchanges of knowledge and innovation between cooperatives in Africa and Europe. In October, these themes will take center stage at the African Microfinance Week in Nairobi, where BRS’s partners will present their experiences. Later, at e-MFP’s annual event in November in Luxembourg, the dialogue will continue, ensuring that the momentum around cooperatives and sustainability is sustained throughout the International Year of Cooperatives.   Conclusion: Cooperatives Doing Together What They Can’t Do Alone Echoing Friedrich Wilhelm Raiffeisen’s timeless maxim — “Let’s do together what we are too small to do alone”  — the webinar made it clear that cooperatives are not just fit for purpose, but essential to Africa’s sustainable future. They represent a people-powered model  of development that is local, inclusive, and adaptive. In a time of global uncertainty, the cooperative movement is showing that grassroots action, democratic governance, and shared ownership  can be powerful tools for navigating the challenges of climate change, inequality, and economic resilience. As the CoopStar study gains traction and national dialogues unfold, the cooperative movement in Africa stands ready to be a cornerstone of transformation — by the people, for the people. About the Author: Bart Speelman is program co-ordinator agri-finance at BRS.  He is following up on the cooperation, coaching and advice of BRS-volunteers from KBC Bank in Belgium with BRS’s MFI-partners in Senegal, Ethiopia, Guinee and Burkina Faso.  In his role he also co-ordinates inspirational agrifinance workshops where BRS brings together Microfinance Institutions, Impact Investors and Providers of Technical Assistance to MFI’s and Farmers Organisations to share experiences with one another, learn from each other and to actively engage with customers in the field. Prior to this, he worked as a project and program co-ordinator at KBC Bank for 20 years during which he also was volunteering for BRS and he started his career setting up savings and credit cooperatives when working for Trias in Tanzania.

Authors: Albert Dah & Armel Katinan Ouattara In the second in a new blog series to celebrate the International Year of Cooperatives, Armel Ouattara and Albert Dah from Advans Côte d'Ivoire explain the roots of Advans CI’s work with cooperatives, the rationale and consequences of winning the European Microfinance Award 2018, and how Advans CI has diversified its work with cooperatives via many new products and initiatives that have been introduced in the seven years since.   In 2018, Advans Côte d’Ivoire won the European Microfinance Award (EMA2018) on “Financial Inclusion through Technology” for its mobile money solutions to serve cocoa farmers and promote their children's school enrolment. Seven years later, new challenges have arisen, but Advans has also innovated and expanded its scope of action to meet the needs of all individuals within the cooperative ecosystem.   Addressing Cooperatives’ Needs From The Start Advans Côte d'Ivoire is an Ivorian MFI offering loans, savings, and payment services. Since our beginnings in 2012, we have worked with cocoa cooperatives, which play a key role in rural Côte d’Ivoire. An agricultural cooperative enables producers to pool resources, access markets, and manage price risks . In areas with limited access to capital and strong social ties, cooperatives are significant players in the financial inclusion sector. For years, in the absence of committed financial institutions, cooperatives have worked to ensure the resilience of their producers by granting social credits, safeguarding producers' cash in their vaults, and distributing inputs and motorcycles. Early on, Advans recognised cooperatives as the entry point for producers' financial services , becoming the first Ivorian MFI to trust cooperatives and design products specifically for them. Advans Côte d’Ivoire began by offering in-kind loans to cocoa farmers working in cooperatives under a solidarity-based model . We provide funding for purchasing fungicides, insecticides, fertilizers, treatment equipment (such as atomizers and sprayers), and protective gear. We pay the input suppliers directly on behalf of the farmers, and through these grouped orders, the farmers benefit from reduced prices. The farmers are then required to repay the loan to Advans through their cooperative. In 2024, nearly 50,000 cocoa producers took out this loan.   The European Microfinance Award 2018 Following its strategy to enhance the financial inclusion of cooperative workers, Advans continued to develop new products. In 2018, it won the European Microfinance Award for its understanding of the needs of Ivorian cocoa farmers and its tailored technological solutions addressing the challenges of traceability and security when cooperatives make payments to cocoa farmers. The digital wallet service developed by Advans is particularly well-suited for cooperative workers living far from banks and facing difficulties accessing formal financial services. This digital savings and payment solution connects each producer’s Advans account to a Mobile Money account and facilitates wallet-to-bank and bank-to-wallet transfer services. Therefore, it has allowed cooperatives to make digital payments to farmers for their harvests and enabled producers to easily save and withdraw money from their accounts, reducing the risks associated with handling cash. Currently, over 130,000 producers have access to these digital transaction services through their savings accounts. As the irregular cash flow of farmers led to low school enrolment rates, we were also recognised for offering small digital school loans based on an algorithm reflecting the farmers’ cash flow , enabling them to finance their children's school fees on time. Indeed, the back-to-school season coincides with the lean season for cocoa farmers. As they often have limited funds during this period, many producers wait for the first cocoa deliveries in October or November to enrol their children in school. Since 2018, the number of cooperatives taking digital school loans has doubled: nearly 20,000 loans were granted to cocoa producers, totalling 2.7 billion FCFA (4.71 million USD), facilitating an uninterrupted education for even more children. We also provide life insurance for cooperative workers and their families . In partnership with an insurance company, the premium is directly debited from the producer's Advans account, and the reimbursement process is adapted to the challenges of officially reporting claims and deaths in remote rural areas. Advans also offers an education insurance policy that covers their children's school fees  in the event of the producer’s death to ensure the continuity of their education. Through these initiatives, Advans CI has significantly contributed to the financial resilience of farmers by transitioning from informal cooperative practices to formal digital financial services.   New Projects for Cooperatives Following the EMA2018 success, Advans CI continues to co-design, with over 500 partner cooperatives, a tailored offer that meets the needs of cocoa farmers. Advans provides training and education to cocoa farmers  to empower them in household budget management, savings, loans, risk management, insurance, investment, financial institutions, and digital financial services for both personal and agricultural development. For example, in 2024, more than 10,000 producers were trained on the functioning, management, and repayment of input credit. A sensitisation program on climate change and its agricultural consequences  has also been carried out for producers. To increase the traceability, security, and efficiency of payments between the cooperative and the cocoa farmers, Advans has developed a digital payment system for certification premiums . The cooperative sends Advans the bonus amount to be paid for each producer, and Advans is responsible for transferring the money from the cooperative's account to each producer's account. This boosts producers' savings and assists them in spreading their income throughout the year. In 2024, to further address the needs of stakeholders in the cocoa sector, Advans introduced a loan to help farmers purchase a motorcycle or tricycle for transporting cocoa pods . This product aims to strengthen smallholder farmers’ capacity for harvest and delivery, enabling them to develop a transport activity that generates additional income while reducing costs paid by the cooperatives, which often cover expenses for motorcycles and tricycles. The repayment schedule is tailored to the specifics of the cocoa production season, as farmers have less cash to repay during the two lean periods when their income diminishes. At the cooperative level, a truck loan has also been established to ensure the transport and delivery of cocoa by cooperatives. In addition to these services, Advans has established a network of third-party agents known as “Advans Points” to improve the accessibility of financial services in remote communities . Advans Points are operated by partners located in cooperatives or small businesses, facilitating access to Advans services for customers far from branches. At an Advans Point, customers can make deposits and withdrawals directly from an Advans account and perform simple transactions (such as opening or reactivating an account, changing a telephone number, etc.). Among the 60 points opened in the country, one-third are currently located in cooperatives. By understanding the challenges faced by cocoa cooperatives, Advans designs more tailored and suitable credit solutions to address the producers’ needs while considering the broader cooperative community.   How Advans’ Products Have Diversified to Target the Entire Community  Enhancing the living standards of cocoa-producing households also requires supporting crop diversification and increasing women's incomes . To achieve this goal, Advans works with Village Savings and Loan Associations (VSLAs), which share many structural similarities with cooperatives and serve as a strategic mechanism for economic empowerment. The VSLA model establishes self-managed and self-capitalised savings groups that use members' savings to lend to each other. VSLAs typically consist of 15 to 30 members, with an average of 78% being women, living in urban or rural areas, including very remote locations. This model has expanded to 77 countries, involving over 20 million active participants worldwide. To secure their savings and enable larger loans, Advans CI has developed products and services dedicated to VSLA members , particularly women in cocoa-growing communities. VSLAs can open savings accounts to protect members’ savings. Additionally, VLSA members can open personal accounts and utilize Mobile Money solutions to deposit and withdraw funds, helping to bridge the gender gap in access to financial services. Advans also provides life insurance and loans to VLSAs . The members contribute to the insurance through the VLSA’s Advans account, and payment is received in cases of hospitalisation or death. As for the loan, it is granted to the village association as a legal entity, which then uses the funds to finance individual members’ income-generating activities or support a collective activity, such as farming or retail. Over the past three years, the number of VLSAs banked by Advans has doubled, and in 2024, more than 200 loans were issued to VLSAs. In 2024, a new financial product was developed to supply electrical devices to VLSA women  to enhance their income-generating activities, including refrigerators, fans, and blenders. Advans pays suppliers directly on behalf of these women, who are then required to repay the loan to Advans through their VLSA. Advans continues to innovate and develop products aimed at supporting the entire ecosystem surrounding cooperatives: cocoa producers through mobile money services, motorcycle and input credit; their wives through credit to VSLAs; and their children through education credit. As new challenges arise due to climate change, Advans CI is also developing new products to assist cooperatives in tackling these issues. We look forward to sharing more on this in the future, and we’re pleased to take part in e-MFP’s programme supporting the UN Year of Cooperatives. Photos: Advans Côte d’Ivoire. About the Authors: Albert Dah  is an agricultural finance expert with over 10 years of experience in developing innovative financial solutions for the agricultural sector at Advans Côte d’Ivoire. After a Master’s degree and a Certificate of Expertise in Agricultural Finance, he has dedicated his career to supporting farmers, cooperatives, and rural organizations by facilitating small producers' access to financial services tailored to their needs. As Director of Agricultural Finance at ADVANS Côte d’Ivoire, Albert Dah leads the institution’s agricultural finance strategy, aiming to promote financial inclusion for small-scale producers, cooperatives, and stakeholders in agricultural value chains. Armel Katinan Ouattara  is the Business Development Manager at Advans Côte d’Ivoire. He has over 13 years of experience in microfinance, financial inclusion, and agricultural finance. His expertise includes project management, strategic planning, financial product design, and innovation in distribution channel development, particularly for digital and agricultural financial inclusion. Armel holds a Master of Science in Corporate Finance from the Lyon School of Management and a Certificate of Expertise in Agricultural Finance from the Frankfurt School of Finance & Management.

Author: Sam Mendelson, e-MFP. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 4th piece in a series of blogs that we’ll be running throughout the year on this topic, e-MFP’s own Sam Mendelson explains the mental models that make insurance such a hard ‘sell’, and what behavioural insights teach us about how to increase access and uptake.   Insurance, at its core, is a promise. A promise that when things go wrong - when your house floods, your crops fail, your health collapses – someone, somewhere, has got your back . For low-income and vulnerable populations, who often live closest to those risks, the value proposition should be crystal clear. So why is insurance so hard to sell to the very people who need it most? Despite decades of innovation, inclusive insurance has yet to reach its transformative potential. Even where products are affordable , available , and well-designed , uptake remains puzzlingly low among low-income populations. Why? It’s not just a distribution problem. It’s a perception problem. It’s behavioural, emotional, and based on internal logic in ways that traditional economics - with its focus on rational actors – can fail to capture. Understanding the low uptake of insurance products among vulnerable groups requires diving into psychology, culture, and people’s lived experience. The answer lies not only in supply-side or economic constraints, but in the complex and in reality irrational  ways that people perceive risk, weigh decisions, and engage with unfamiliar financial tools. This blog explores the behavioural and perceptual barriers to inclusive insurance - and what can be done about them. The Limits of the ‘3 As’ Traditionally, poor uptake has been attributed to the classic trio: Affordability , Accessibility , and Awareness. These remain critical. But programmes that addressed all three have still faced lacklustre enrolment. A growing body of evidence suggests something deeper is at play. Inclusive insurance is, at its core, a behavioural product . It asks people to give up scarce resources now in exchange for uncertain future benefits . Understanding the psychology behind that decision is crucial to closing the protection gap. Five Behavioural Barriers to Uptake 1.   Present Bias: ‘Why Pay Now for a Maybe Later?’ People - especially those living in conditions of scarcity - tend to overvalue immediate needs and undervalue distant ones. This cognitive bias - present bias  - makes insurance a tough sell: paying premiums today doesn’t satisfy an immediate need, and the benefit may never materialise. A CGAP study in Kenya on mobile health insurance found that uptake increased when premiums were automatically deducted in small amounts  - effectively bypassing the friction of daily trade-off decisions and making enrolment feel painless. 2.   Trust and the ‘Payout Illusion’ Many people simply don’t believe that insurers will pay when the time comes. This isn’t unfounded: opaque terms, complex exclusions, and poor claims experiences have eroded trust. In some contexts, there's a widespread perception that insurance is a scam or a trap - the ‘ perceptual contagion effect’ . In India, studies from the ILO’s Impact Insurance Facility have shown that even rumours of denied claims in neighbouring areas can supress uptake in pilot schemes . 3.   Complexity and ‘Cognitive Load’ Insurance is conceptually difficult - especially when layered onto already-complex lives lived in conditions of high cognitive stress . Poor households are often juggling dozens of survival decisions daily. In that context, unfamiliar financial products demanding mental energy are likely to be ignored. The World Bank’s Mind, Society and Behavior Report emphasises how scarcity taxes the brain , reducing bandwidth for long-term planning or abstract risk-mitigation. 4.   Mental Models of Risk In many settings, people don’t think of risk in probabilistic terms. Instead, they may frame risk through a fatalistic lens  (“ If it’s going to happen, it will happen ”) or rely on community support systems . These mental models shape how people perceive the usefulness of insurance. A 2023 study in Ghana found that uptake increased when insurance was bundled with community-based saving schemes —essentially grafting the unfamiliar onto a familiar and trusted model. 5.   Loss Aversion: ‘If I Don’t Claim, I Lose’ Behavioural economics shows that people feel the pain of loss   more acutely than the pleasure of gain . Insurance premiums, especially if no claim is made, feel like money wasted. This is loss aversion at work—and it makes insurance seem like a bad deal. Interestingly, when schemes reframed premiums as contributions to a mutual support fund, uptake improved – as was the case in several cooperative schemes supported by the ILO’s Inclusive Insurance Initiative .  Breaking down behavioural barriers So what can be done? 1.   Design for behaviour, not just economics. Product design must start from how people actually think.  This includes incorporation of behavioural design principles, such as simplifying choices, pre-selecting beneficial defaults, and breaking costs into bite-sized contributions.   2.    Trust is built through experience—especially when it comes to claims. Claims processes must be fast, fair, and human-centred. Word-of-mouth is a powerful force, and a single good claim experience can unlock local markets. Conversely, a single denial (however justified) can poison the well. Claim visibility, such as letting communities witness payouts, can dramatically improve trust and future enrolment.   3.    Use trusted channels and familiar offerings. People are more likely to engage when insurance is distributed through trusted community leaders, farmer cooperatives, or savings groups. Packaging insurance as part of a familiar offering, like credit, farm inputs, or healthcare, makes it feel less alien. 4.    Bundling  is a powerful behavioural tool. This is especially true when it removes the need for a separate, deliberate decision to enrol.   5.    Communicate for comprehension, not compliance. Insurance jargon can sometimes seem defiantly opaque. Simple, visual, and narrative-based communication is vastly more effective. Testimonials, stories, and analogies resonate more than actuarial tables. Programmes using interactive tools, such as role-playing or radio dramas, have found significant improvements in understanding and uptake. If inclusive insurance is to meet its potential, the sector must stop designing for that most elusive of characters – the ‘rational economic agent’ – and start designing for real people. That means: Respecting the psychological context of poverty; Building trust through action, not promises; Communicating clearly and empathetically; and Embedding products into people’s lives, not asking them to step outside their reality to adopt them. In the end, the problem isn’t just that insurance doesn’t reach the poor; It’s that too often it doesn’t resonate – and so arguments around affordability and premiums-to-payout ratios will often not do the trick. Behavioural insights can help bridge that gap; not by manipulating people into buying insurance, but by making the purchase of suitable insurance a behaviour that is virtually second nature. About the Author: Sam Mendelson is Financial Inclusion Specialist at e-MFP, part of the European Microfinance Award design and evaluation team, and the lead author of the Financial Inclusion Compass. A long time ago, his first degree was in Psychology.