RESULT STORIES
       Global Index Insurance
       Facility | GIIF                                         BURKINA FASO
Interview of Karim Traore, President of Burkina Faso's
National Union of Cotton Producers (UNPCB)

As a GIIF partner for the development of index insurance
in Burkina Faso, PlaNet Guarantee has implemented
authorized index insurance solutions to meet the demands
of agricultural producers, in particular cotton producers as
their crops often encounter yield drops due to poor climatic
conditions. PlaNet Guarantee supports groups of cotton
producers, which in turn supports the Burkina Textile
Fibers Company (Société Burkinabè des Fibres Textiles, or
SOFITEX), in their risk management strategy by offering
them an insurance policy, as well as providing technical
training for their leaders and raising awareness of index
insurance among their members. The partnership with the
National Union of Cotton Producers (UNPCB) is a concrete
example of PlaNet Guarantee’s activities in Burkina Faso.

Karim Traore has been the president of UNPCB since          Cotton produced by UNPCB members.
March 2010. Created on April 15, 1998, UNPCB is the
supreme body of the cotton producers’ unions (GPC), which were created in 1996 to facilitate the supply of agricultural
inputs and equipment, good credit management, and an increase in cotton production, so that Burkina could maintain
its leading position in the marketplace.

Mr. Traore’s role is to lead UNPCB in its missions, namely: representing and defending the interests of cotton producers;
strengthening cohesion between members; improving collaboration with partners; and promoting capacity building
among the members of UNPCB.

With close to 80% of its active population employed in the agricultural sector, Burkina Faso’s economy is heavily reliant
on agricultural production. Cotton is the country’s most important cash crop. Against this backdrop, in 2010 index-
based insurance solutions were introduced in Burkina Faso to protect smallholder farmers, in particular cotton growers
and multicereal famers, against risks associated with climate change. According to Mr. Traore, "We subscribed to



                                            Global Index Insurance Facility is funded by
RESULT STORIES
cotton index insurance about four years ago because we believed that this insurance could improve the lives of cotton
farmers, who need protection against the risks related to climate change, which have become all too frequent."

"In the cities of Houndé and Dédougou, which were in pilot regions, several cotton producers have received the
benefits of index insurance after droughts that yielded bad production,” says Mr. Traore. “As the President of
UNPCB, and as a member of a producers’ union, I myself recently benefited from this insurance, following floods that
occurred in September 2015. My losses were quickly estimated by insurance experts, and I received an agreement for
compensation. The compensation payment takes place over time, because all of the production has to be finished for
the final calculations to be made. However, the compensation is currently continuing."

IMPACT STATEMENT

"Farmers no longer fear to grow cotton in areas that are at risk, because they know they will be compensated in case
of drought or flooding,” says Mr. Traore. “It would be difficult for me to provide exact data, however I can tell you that
index insurance strongly encourages farmers in their work, and we are finding that cotton production has increased in
all of the areas where farmers have subscribed to it.

The compensation of producers who have been
affected by climate-related damage or loss
are underway, and are gradually progressing.
With the first amounts collected, farmers have
reinvested in inputs, and have quickly filled the
shortfall caused by the drought."

Index insurance has clearly demonstrated its
ability to help improve productivity and cotton
production in at-risk areas of Burkina Faso. The
prospect of scaling-up through the availability
of cotton insurance to all UNPCB producers will
no doubt confirm this trend.




                                                     Cotton producers working on plantations.




                                 Global Index Insurance Facility is funded by                                           2