On April 23rd 2019, Minister of Agriculture and Animal Resources, Dr Gerardine Mukeshimana, officiated the launch of the National Agriculture Insurance Scheme (NAIS). Unveiled in Nyanza District, the scheme is meant to mitigate risks and losses incurred by farmers due to unpredictable natural disasters, pests and diseases that affect their livestock and crops.
Dubbed “Tekana Urishingiwe Muhinzi Mworozi,” the scheme which is subsidized up to 40% by the Government of Rwanda, will also enable the farmers to easily access financial services and ensure flow of credit to the agriculture sector.
In the initial phase, livestock insurance will cover dairy cattle including both cross and exotic breeds in eight selected districts while the crop insurance scheme will cover maize and rice farmers in ten districts. The crop insurance scheme will be introduced in the subsequent Season A 2020.
In this pilot phase, livestock insurance product is being rolled out in Nyanza, Gicumbi, Musanze, Rwamagana, Gatsibo, Ruhango, Nyagatare and Burera districts, while the crop insurance product will be introduced in Gatsibo, Nyagatare, Bugesera, Gisagara, Kirehe, Gicumbi, Huye, Rulindo, Ngoma and Rwamagana districts. The scheme will be scaled up countrywide later.
In implementing the National Agriculture Insurance Scheme, the economy will be able to move from a culture of providing ad hoc support to farmers in the aftermath of large production shocks towards a system of pre-planned and budgeted agriculture insurance. At this implementation stage, the livestock insurance has been unveiled with an innovation of the use of microchips to avoid fraud.
Speaking at the event, Minister Mukeshimana, underlined that the National Agriculture Insurance Scheme is in line with the government’s intention to improve livelihoods of citizens through capacity building and providing support in their respective professions in order to eradicate poverty; thus boosting the country’s economy.
Agriculture accounts for a third of the country’s GDP and close to 70% of working population are employed in agriculture sector.
“We believe that this insurance scheme will empower farmers since their activities will be insured by reputable insurance companies to manage risks and losses amongst the smallholder farmers. Our intention is to get all smallholder farmers covered with this insurance scheme,” the Minister said.
She also called upon all development partners to embrace this initiative so as to provide more farmers with insurance services countrywide.
This insurance is being implemented through a multi-agency framework composed of selected insurance companies under the overall guidance and control of the government. In this initial phase, SONARWA, PRIME and Radiant are the three insurance companies to implement the National Agriculture Insurance Scheme.
"Insurers are very thankful to Government though Ministry of Agriculture for this Partnership from which we expect on our side: Financial inclusion, Product diversification, Business opportunities," says the Chairman of Rwanda's association of insurers (ASSAR), Mr. Gaudens S. Kanamugire.
The development of the scheme has been supported by development partners through Access to Finance Rwanda (AFR).
AFR Country Director, Ms Waringa Kibe, noted that partnering with insurers and the Ministry of Agriculture and Animal Resources (MINAGRI) to develop the livestock insurance scheme is very strategic in terms of inclusive development of Rwanda’s economy.
“This partnership is very key because we at AFR acknowledge that agriculture remains central to the structural transformation of Rwanda’s economy, contributing to economic growth, food security, exports, job creation, increased land and labor productivity,” says the AFR Country Director.