Agriculture is an important sector of the Senegalese economy, accounting for about 15-16 percent of GDP in 2020. Sixty percent of the workforce is dedicated to food crop production. Despite its significance, Senegal faces challenges due to its location in the drought-prone Sahel region, characterized by irregular rainfall and generally poor soils. As a result, Senegal relies on imports to meet approximately 70 percent of its food needs.

Senegalese agriculture is marked by the prevalence of major climatic risks (significant variability of rainfall in time and space), locust invasions, bird attacks noted especially in the river valley zone, etc.). For example, out-of-season rains have caused an estimated economic loss of 31 billion FCFA (World Bank, 2006).

Droughts, floods, sea-level rise, and coastal erosion pose significant threats to Senegal's development objectives. Situated mainly in the Sahel region, the country experiences rising temperatures and highly variable rainfall, increasing dependence on food imports and challenging poverty and food security strategies. According to the ND-GAIN country index, Senegal ranks 31st among the most vulnerable countries and 165th worldwide in terms of its willingness to improve resilience.

This implies high vulnerability and low preparedness, requiring urgent investment and innovation.

The following study examines the growing impact of climate induced disasters on the agriculture sector in Senegal and explores financial gaps that could feasibly be filled through climate risk insurance (CRI) solutions.

By shedding light on the intricate interplay between demand and supply, this study aims to inform the 'Climate Risk Insurance' Programming under UNCDF's ‘Climate Agenda’ about the state of climate and risk insurance in Senegal, with the ultimate goal of enhancing resilience and adaptation in the face of an increasingly uncertain climate future through targeted CRI instruments.