| Sumario: | Many factors inhibit the development of the agricultural sector in much of Sub-Saharan Africa: poor infrastructure, limited dissemination of new technologies, inappropriate government policy, and so on. One factor that is again receiving attention is that of uninsured risk. It is well understood that smallholders in Africa are exposed to a wide range of risks, including those deriving from climatic events, economic shocks (such as sudden drops in output prices or increases in input prices), illness and death, and social and political conflicts. Not only is the threat of such adverse events pervasive, but also formal credit and insurance mechanisms in much of the subcontinent are badly underdeveloped.
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