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Building Resilience: Feasibility Study of Index-Based Livestock Insurance (IBLI) in South Sudan

Pastoralist communities in South Sudan’s Greater Kapoeta region rely heavily on livestock for economic stability, social identity, and food security. However, they face persistent threats from climatic shocks such as severe droughts, resource depletion, and environmental degradation, jeopardizing their livelihoods.

Index-Based Livestock Insurance (IBLI) presents an innovative financial solution by using satellite data to monitor environmental conditions and trigger automated payouts during adverse events. To assess its feasibility in Greater Kapoeta, Quad Tee conducted an in-depth study, revealing key insights and opportunities for implementation.


Assessing IBLI’s Viability in Greater Kapoeta


The study highlighted the critical role of livestock in local culture and economy. However, vulnerabilities from recurrent climatic shocks, including droughts and diminishing grazing conditions, place pastoralists at significant risk. Despite its potential, IBLI faces barriers to adoption. Cultural resistance to formal insurance, reliance on traditional risk management practices, and low financial inclusion (with less than 6% of adults having access to financial accounts) present challenges. Institutional constraints, such as limited governmental capacity and poor infrastructure, further complicate implementation.

Nonetheless, IBLI’s satellite-driven model provides a promising approach by ensuring objective, data-driven payouts that bypass logistical hurdles. This makes IBLI well-suited to the region’s conditions, offering a critical safety net for pastoralist communities.


Cattle on sale at a livestock market in Kapoeta
Cattle on sale at a livestock market in Kapoeta

Quad Tee’s Strategic Role


Quad Tee leveraged its expertise in project management and consultancy to conduct a comprehensive feasibility assessment. Using a mixed-method approach, the team combined desk research with field visits to capture real-world challenges and opportunities. Interviews with government officials, international organizations, and local stakeholders provided further insights into institutional readiness.

Expert contributions from Quad Tee’s team strengthened the study:

  • Paul Kweheria brought expertise in financial inclusion and risk management, ensuring IBLI’s viability for pastoralist communities.

  • Muthithi Kinyanjui applied her extensive experience in climate resilience and inclusive finance to align IBLI with broader resilience-building efforts.

  • Lawrence Kenduiywa integrated actuarial insights and satellite-driven risk assessment to refine IBLI’s technical framework.

  • Tracy Neema supported the experts above to gather, analyze, and consolidate critical data that shaped the study’s recommendations.

Quad Tee also engaged regional partners in Kenya and Ethiopia, drawing from their IBLI experiences to shape recommendations for Greater Kapoeta. Satellite-based environmental monitoring was a key component, enhancing the objectivity and efficiency of IBLI payouts while reducing delays and administrative burdens.


Potential Impact on Pastoralist Communities


IBLI offers significant benefits, including financial protection against livestock losses, reducing economic shocks from drought and adverse conditions. By stabilizing incomes, IBLI can help mitigate conflicts over scarce resources and foster resilience in vulnerable communities.

Beyond individual households, IBLI strengthens local economies and promotes sustainable livestock practices. The model’s reliance on satellite-based payouts enhances transparency and trust in the system, further encouraging adoption.


Overcoming Implementation Challenges


Successful implementation of IBLI requires addressing cultural skepticism and financial literacy gaps. Community engagement efforts, leveraging local leaders and elders, can help bridge trust barriers. Additionally, bundling IBLI with veterinary services, market access, and disease surveillance can increase its appeal and practical value to pastoralists.

Institutional capacity-building is also essential. Strengthening technical expertise within local agencies and collaborating with regional platforms such as IGAD can facilitate regulatory alignment and cross-border coverage for migratory livestock.


Key Recommendations for Effective Implementation


Product Scoping and Design should begin with a comprehensive needs assessment to ensure that the IBLI model aligns with the specific risks and economic realities of pastoralist communities. By leveraging satellite data alongside local inputs, the accuracy of payout triggers can be significantly enhanced. Additionally, offering customizable coverage options for different livestock types and risk levels will make the product more accessible and relevant to a diverse range of pastoralists. To further support financial resilience, incorporating a savings-linked insurance component would enable pastoralists to build long-term financial security.

Bundled Products and Services can enhance IBLI’s attractiveness and functionality. Pairing IBLI with essential services such as veterinary care, livestock vaccinations, and feed procurement programs would help pastoralists maintain healthy herds. Furthermore, integrating animal disease surveillance into the program would address concerns about livestock health, particularly during migration periods when the risk of disease outbreaks is high.

Community Engagement and Awareness are crucial for IBLI adoption, given cultural skepticism about formal insurance schemes. Sensitization campaigns should be conducted in collaboration with community organizations and local leaders to build trust and ensure understanding of the insurance’s benefits. Additionally, offering Sharia-compliant insurance options would help ensure inclusivity for religious communities. To reach a broader audience, education materials should be provided in local languages and disseminated through accessible platforms such as community radio.

Flexible Payment Options will play a key role in making IBLI financially accessible. Premium payment plans should be structured to allow installment payments aligned with livestock sales cycles, ensuring affordability for pastoralists. Moreover, mobile payment platforms should be introduced to facilitate both premium collections and claim disbursements, particularly as digital literacy improves in the region.

Policy and Regulatory Support is essential to create an enabling environment for IBLI. Establishing a national agricultural insurance framework would help regulate and support the initiative, while public-private partnerships could enhance its financial sustainability. To ensure that vulnerable pastoralists can participate, a tiered subsidy system should be implemented, targeting support to those most in need. Strengthening livestock data collection efforts will further improve risk assessment and the accuracy of insurance payouts, making IBLI more effective and responsive.


Strategic Partnerships for IBLI Success


Given the complexity of implementing IBLI in South Sudan, strong collaboration across multiple stakeholders is necessary. Public-private partnerships will be vital in engaging insurance providers and reinsurers such as Swiss Re and ZEP-RE to share financial risks and ensure the sustainability of the program. International donors and development banks, including the African Development Bank, World Bank, and FAO, can provide critical funding for capacity building and infrastructure development.


Additionally, partnerships with academic and research institutions such as International Livestock Research Institute (ILRI) and universities will help refine the IBLI model by integrating research-backed insights. Community-Based Organizations and cooperatives will play an essential role in distributing policies, educating pastoralists, and fostering trust. Finally, regional collaboration with organizations like Intergovernmental Authority on Development (IGAD) and IGAD Center for Pastoral Areas and Livestock Development (ICPALD) will facilitate cross-border insurance coverage, ensuring that migratory pastoralists remain protected throughout their movements.

Through these strategic interventions, IBLI can become a sustainable, scalable solution that strengthens pastoralists’ resilience and enhances financial inclusion in South Sudan.


Conclusion: A Pathway to Resilience


The feasibility study underscores IBLI’s potential as a transformative tool for mitigating climate-related risks among South Sudan’s pastoralist communities. However, strategic interventions are required to address cultural, financial, and institutional challenges. Through targeted product design, community engagement, and robust partnerships, IBLI can provide a scalable, sustainable safety net, ultimately enhancing the resilience of pastoralist livelihoods in Greater Kapoeta.


Quad Tee remains committed to driving innovative solutions that foster resilience and financial inclusion. To explore strategic opportunities in financial protection and climate risk management, contact Quad Tee today.



 
 
 

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