Geodata for Innovative Agricultural Credit Insurance Schemes

A systematic and synergetic approach for financial inclusion, promotion of investment in agriculture, broker sustainable production methods and risk transfer tools

> Download the GIACIS project leaflet

Target user group

Small farmers (80% < 0.5 ha) in the rainfed cropping areas of the 4 key-regions of Ethiopia: Oromia, SNNPR, Amhara and Tigray, who cultivate Tef, Wheat, Barley, Maize and Sorghum. The 3-year target is to reach > 7 million households, of which 1.6 million are expected to purchase the product offered. The insurance addresses the needs of Ethiopian farmers that operate at the lowest step of development and those that have moved somewhat up the ladder.

Services to be provided

The purpose of the Public-Private Partnership is to expand financial service delivery to smallholder farmers in Ethiopia with a geodata-driven risk-mitigation (insurance) product that offers a basic safety net to protect them against weather related perils. In partnership with local financial institutions, the insurance product will be bundled with credit to purchase agricultural inputs. In combination with weather prediction services, the insured credit package will locally be made available through ICT infrastructure services (branchless banking). The project consortium will align to the rural finance strategy (RFS program) as managed by ATA. This allows for a systematic synergetic approach to provide financial inclusion, promote investment for agriculture, broker sustainable production methods and provide risk transfer tools. The followed system approach creates a suitable legal, institutional and organizational framework.

Business proposition

The main value proposition of the project for smallholder farmers is that they can insure a taken credit amount to purchase and use agricultural inputs, against weather-related perils. It thus protects a farmer against risks that seriously impacts on their ability to repay credit taken. It modifies/unlocks the risk-aversion behavior of farmers towards farming that prioritizes optimization of long-term productivity, profits, and sustainability.

Kifiya will design a transaction fee structure to enable the development and delivery of the GIACIS product through technology and use of their agent network. The insured-credit product will be part of a basket of services that runs on their mobile financial services platform bringing an increasing value-content as a cost-effective value-proposition to farmers. By transaction, Kifiya is able to charge bottom-price costs; when achieving transaction volume, their business proposition is viable.


Partners are mutually very complementary and as group all-inclusive:

Lead Partner:

  • ITC University of Twente (public), The Netherlands


  • Business partner: Kifiya Financial Technology PLC (private), Ethiopia.
  • Corporate partners: Agricultural Transformation Agency – ATA (public), Ethiopia.
  • National Meteorology Agency of Ethiopia – NMA (public)
  • Support partner: Swiss Re corporate solutions (private) –Switzerland

Aligning micro-insurance to the logic of the Rural Finance Strategy (RFS) program of ATA has the advantage that roles and responsibilities of all partners can be optimally defined and effectuated.

The GIACIS partnership:


> Visit the reporting tool for project results and updates

Kifiya’s branchless banking technology: twice weekly, an agent will be available at the market place of a village for farmers to make transactions through GPRS.


The GIACIS project area: all highland areas where the 5 key cereals are cultivated (Tef, Wheat, Barley, Maize, Sorghum).

ServicesCrop index insurance
Target groupsFarmer (smallholders)Insurance company
Project start2014