The primary objective of the study was to explore the market potential for smallholder agricultural insurance in Lesotho. It focused on identifying insurance providers willing to offer this type of insurance, as well as the factors that may enhance or limit their entry into this market. Additionally, the study examined the potential for integrating insurance within the priority value chains, which encompassed grains, dairy, horticulture (fruit/vegetables), poultry, piggery, and fisheries/ aquaculture.

The study involved an in-depth review of existing data and information, including agricultural insurance policies and regulations in Lesotho. 4D facilitated extensive focus group discussions with various stakeholders, such as producers, aggregators, off-takers, buyers, and sellers, including agribusinesses, banks, MFIs, NGOs, input companies, village savings groups, and cooperatives. Key informant interviews were conducted with insurance companies and brokers to gain insights into the market dynamics and opportunities.

Additionally, the study explored the organization and alignment of the agricultural value chain, involving farmers, farmer organizations, private actors, state-owned enterprises, and government-subsidized private and public actors. 4D also conducted a meticulous assessment of existing weather and crop data, crucial for developing effective agricultural insurance products.

By conducting this comprehensive Agriculture Feasibility Study, 4D Climate Solutions demonstrated its commitment to advancing climate-smart solutions and supporting the agricultural sector in Lesotho. Through robust data analysis and stakeholder engagement, 4D continues to pave the way for climateresilient practices and sustainable development in the region.