Oreeditse Shirley Ramolefhe is an Agricultural Economist specializing in Agribusiness management. She has graduated in Masters in Agricultural and Applied Economics at the University of Nairobi (Class of 2020). The successful completion of this program was enabled by a Scholarship program funded by African Economic Research Consortium (AERC). She also holds a BSc in Agricultural Economics from Botswana University of Agriculture and Natural Resource Management in April 2013. Oreeditse has made an oral dissemination of her research work in a couple of international conferences (Virtual presentation at Centre for the Study of African Economies conference in 2020 and AGRO conference in 2019). She has also submitted several journal paper for publication in high-impact peer-reviewed journals. Ms Ramolefhe has experience in field research work (especially at household, community and market level) and statistical data analysis.
Botswana’s livestock sector accounts for 70% of foreign exchange earned from the agriculture sector, yet it is threatened by several risks which can be mitigated by adopting livestock insurance. In 2010, Botswana Insurance Company (BIC) introduced a livestock insurance policy (LIP) to encourage farmers to reduce effects of natural calamities, however few traditional livestock keepers have adopted it. The objective of this study, therefore, was to assess smallholder cattle keepers’ willingness-to-pay (WTP) and factors influencing WTP for cattle insurance attributes in the Central District of Botswana. Using the factorial design in conjoint analysis, six attributes and their levels were combined into sixteen profiles, presented to 182 random selected respondents for preference ranking and expression of WTP. The results show that livestock farmers were willing to pay $17.77, $7.07 and $1.12 for weather index-based insurance (WIBI) cover, covering proportion of a herd and replacing a dead cow with a live one respectively. The overall mean WTP for a full insurance product was $11.45. The factors that positively influenced respondents’ WTP for cattle insurance were distance to the nearest tarmac road, off-farm investment income, total land size owned by the respondent, and total livestock unit (TLU). The age of household head, access to credit, annual crop sales income and vaccine cost negatively influenced the WTP. The BIC should consider designing cattle insurance policy products within price range of US$18.13 and US$23.88. Most ideal policy attribute are: a 1-month compensation period, covering portion of the cattle herd, WIBI at US$0.7/month paid as an annuity, compensate keepers with a live animal in case of a loss.
Dr Patrick Irungu
Professor Rose Nyikal