Two insurance products that ACRE (Agriculture and Climate Risk Enterprise) Africa provides are Soil-Moisture Index (SMI) insurance and Index-Based Livestock Insurance (IBLI). These products use smart contracts, as the underlying technological innovation, to facilitate the provision of insurance products to smallholder farmers in Africa.

Explain how a smart contract can be applied to insurance for smallholder farmers in Africa, with a specific emphasis on the role of data in the execution of smart contract (6 marks).

List two sources of data that can be used for the Index-Based Livestock Insurance (IBLI) product provided by ACRE Africa and explain how these data sources can be used in the execution of a smart contract (6 marks)?

What challenges can smart contracts solve for smallholder farmers in Africa (6 marks)?

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