Kenya's Pula among US' Sh 931.7bn private sector investment

Agritech insurance and tech company, Pula has committed to increasing their coverage to 100 million smallholder farmers across sub-Saharan Africa.

This comes at a time when the US VP Kamala Harris called for the private sector to promote, and enhance climate resilience, adaptation and mitigation across Africa.

The U.S. Government also announced new federal funding and initiatives to expand access to climate information services.

Pula is now among 24 other organisations that have joined President Biden's Sh 931.7 billion commitment.

In response to the President’s Emergency Plan for Adaptation and Resilience (PREPARE), the startup will provide up to Sh2.66 trillion in insurance by 2026.

Through a statement made by the White House, these new investments and initiatives will generate significant economic benefits.

This is while addressing African nations’ pressing needs resulting from the climate crisis, including food security challenges, by helping to lift up over 116 million farmers and promote climate-smart agriculture.

"These announcements demonstrate America’s commitment to partnering with African people and governments, alongside the private sector, to help the continent meet its climate adaptation and resilience, clean-energy access, and just energy transition goals," the White House said.

Pula targets to insure previously uninsured farmers to generate a direct positive impact for farming households across Africa.

The smallholder farmers pay $20 (Sh 2,668) for $200 (Sh 26,680).

According to Pula, this will help farmers secure their livelihoods by protecting them against the risk of financial losses due to climate-related events.

VP Kamala Harris noted that the world needs to appreciate and understand the importance of investing in African ingenuity and creativity.

"I am convinced we’ll continue to unlock the incredible economic growth and opportunities that we have seen thus far to the benefit of the entire world," she said.

Mastercard has also committed to increasing access to its Community Pass platform to a total of 15 million farmers in Africa by 2027 to spur economic output and opportunity.

In a bid to spur sustainability, clean energy, and clean transportation, Kenya's Roam Electric has also responded to the PREPARE call for action.

The electric vehicle company aims to raise and invest $150 million (Sh 20 billion ) over the next eight years.

It plans to scale up affordable electric motorcycles and public transit solutions that have been uniquely designed to offer a clean transport solution.

This is for emerging market consumers and results in economic benefits for micro-entrepreneurs and commuters.

Roam’s plan will reduce CO2 emissions while creating 300 direct jobs and more than 24,000 indirect jobs by 2026 with a gender-inclusive recruitment strategy.

Other companies that have made commitments include African Parks, AgDecCo, AlphaTalentsAfrica, Corteva, One Acre Fund, SAGLEV Inc, Sun Culture, Switch Bioworks, and Touton SA.

Last December, the Biden-Harris administration launched the Digital Transformation with Africa Initiative (DTA).

This was part of a broader initiative and approach dubbed Partnership for Global Infrastructure and Investment (PGII).

President Biden, through these initiatives, pledged to work with the United States Congress to invest $350 million (Sh 46.7 billion) and to facilitate nearly half a billion dollars in development financing to make sure that people across the African continent can participate in the digital and global economy.

Pula, under the KCEP-CRAL programme, has been working with the government to ensure over 100,000 farmers.

The startup has also partnered with private sectors like Apollo Agriculture, B-BOX and WFP to also insure over 400,000 farmers through their comprehensive crop Insurance that de-risks farmers against drought, floods, pests and diseases.