ZEP-RE and ACRE Africa: a partnership to strengthen agricultural insurance in Africa

ZEP-RE, the leading African reinsurer, will acquire a majority stake of 56% in ACRE Africa (Agriculture and Climate Risk Enterprise Ltd.), a social impact company supported by the Grameen Crédit Agricole Foundation since 2014. CA Indosuez Wealth (Asset Management), the management company of the Grameen Crédit Agricole Fund which holds a stake in ACRE Africa, has validated the private equity transaction.

ACRE Africa provides crop insurance services to smallholder farmers and advisory services to development organizations and insurance regulators in Kenya, Tanzania, and Rwanda. This agreement paves the way for expanding agricultural insurance for smallholder farmers in Africa by strengthening ACRE Africa's broad range of agricultural and microinsurance products and technology platforms. "Our goal is to expand insurance coverage and improve financial inclusion throughout sub-Saharan Africa. The safety nets we are building will give many disadvantaged smallholder farmers more confidence in farming," said George Kuria, CEO of ACRE Africa, at the signing ceremony.

ZEP-RE (PTA Reinsurance Company) is a regional organization that promotes development and integration within the COMESA (Common Market for Eastern and Southern Africa) region through trade in insurance and reinsurance activities. It is based in Kenya, with regional and national offices in Zimbabwe, Côte d'Ivoire, Uganda, Zambia, Ethiopia, Sudan, and the Democratic Republic of Congo.

As a shareholder of ACRE Africa, the Grameen Crédit Agricole Foundation welcomes the cooperation between ZEP-RE and ACRE Africa. “The COVID-19 pandemic has highlighted the importance of microinsurance in helping low-income rural populations build resilience. ZEP-RE’s expertise and its alignment with ACRE Africa’s mission to champion smallholder farmers will open a new chapter for ACRE Africa, allowing it to penetrate new markets, increase its social impact, and contribute to strengthening the rural microinsurance sector,” said Eric Campos, Managing Director of the Foundation.

Another important partnership was announced at the same time. With financial support from Chainlink Community, ACRE Africa and Etherisc (an online insurance platform developer) will develop a platform for 250,000 smallholder farmers to insure them against climate change risks in Kenya. The outlook for ACRE Africa and smallholder farmer insurance in Africa is encouraging.

More information about ACRE Africa