Mozambican state insurer EMOSE has disbursed approximately 25 million meticais — equivalent to nearly US$390,000 — to compensate around 9,000 smallholder farmers who suffered agricultural losses during the 2024-25 growing season. The announcement was made at the 61st edition of the Maputo International Trade Fair (FACIM 2026).
The payout is designed to cushion the financial impact of losses caused by climatic events and other agricultural risks. EMOSE's agricultural insurance product covers a range of hazards, including droughts, heavy rainfall, pest infestations, crop disease, and yield losses.
According to Victória Magaia, a technical officer at EMOSE, the company offers two principal coverage modalities. The first is linked to climatic factors and triggers compensation payments when rainfall levels or drought periods exceed the thresholds defined in the insurance contract.
The second modality protects crop income against losses caused by pest infestations or disease. Under this arrangement, compensation is calculated based on the actual reduction in agricultural output. Magaia noted that these microinsurance solutions are specifically designed to meet the needs of smallholder farmers, who have limited financial capacity to access conventional insurance products.
During the 2024-25 season, approximately 7,000 insured farmers in Nampula and Zambézia provinces recorded significant losses in groundnut crops and are currently receiving compensation payments. Across all cases, EMOSE reports around 9,000 farmers compensated, though it did not provide a breakdown of beneficiaries, payment amounts, or affected crops by province.
The insurer also did not disclose the criteria used to calculate individual indemnities or the proportion of losses covered by the policies. Based on the total disbursement of 25 million meticais spread across approximately 9,000 beneficiaries, the average payout would amount to roughly 2,800 meticais per farmer, though individual amounts may vary depending on each case.
Agricultural insurance can play a significant role in the recovery of farming households, as the loss of a harvest can leave producers without the resources needed to purchase seeds, fertilisers, and other inputs for the following season. Compensation payments can, in part, restore the financial capacity required to resume agricultural activity.
Without such protection, agricultural shocks can erode household incomes, restrict consumption, increase reliance on informal credit, and jeopardise the continuity of production. Insurance mechanisms can therefore help preserve productive assets and reduce the need for emergency borrowing or government support.
The experience of the 2024-25 season underscores the importance of insurance products tailored to the realities of smallholder farmers. Beyond compensating a portion of losses, such mechanisms can help mitigate the impact of climatic and other agricultural risks on household incomes and support the continuity of farming activity.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/08/economia/seguros/facim-2026-emose-indemnizou-nove-mil-produtores-afectados-pelas-cheias/
