Rwanda: How Agriculture Insurance Scheme is de-risking farming activities

The National Agriculture Insurance scheme (NAIS), dubbed “Tekana Urishingiwe Muhinzi Mworozi”, is playing a vital role in de-risking farming operations, according to crop producers, livestock farmers and local leaders, mostly in the Eastern Province of Rwanda.

This scheme was launched by the Ministry of Agriculture and Animal Resources in 2019 targeting the mitigation of risks and losses incurred by farmers due to unpredictable natural disasters, pets, and diseases that affect their livestock and crops.

It is subsided up to 40% by the Government of Rwanda and enables farmers to easily access financial services and ensure flow of credits to the agriculture sector. Crops covered under National Agriculture Insurance Scheme include Rice, maize, Irish potatoes, Chili, Cassava, Soya bean, Beans and French beans while animals include cattle, Piggery, Poultry and fish.

Farmers and livestock keepers in different parts of the Eastern Province, said this insurance program is significantly providing opportunities to resuming their activities even when facing different challenges.

 “We have been experiencing losses in livestock breeding due to accidents and lack of modern medicine and few veterinarians. I lost so many cows in such conditions but when insurance companies encouraged us to adhere insurance I felt it was good to participate in it. I registered 28 of the 30 cows owned. Some were dead accidently and others were died of diseases. Good news is that I was paid for them”, Mr. Mugiraneza Elissa, a farmer in Nyagatare District, Tabagwe Sector, said.

Niyoyita Peace, a pig farmer on a large scale in Ntarama Sector, Bugesera District, said that she is deeply proud of adhering to livestock insurance.

“In 2020 there was an epidemic in pigs where about 500 pigs could die in about three days in some parts of the country. The loss could be enormous without anything else to help you resuming your business. The loss I experienced is about dead pigs and I was sompensated by my insurer”, she explained.

Mr. Ignace Munyanziza who practices rice farming in Rurambi wetland located in Mwogo Sector, Bugesera District, Eastern Province, said that they used to be affected by natural disasters that lead to total loss but now they are secure with crops insurance.

“In 2018, the flood took away the rice and we didn’t produce anything. At least Rwf 240,000 was refunded to me and this enabled me to resume my farming activities.”

NAIS and increase of investment in agriculture

Ntazinda Rongin, head of Agriculture and Natural Resources unit in Bugesera District emphasized that TEKANA insurance scheme is contributing to the increase of investors in agriculture.

Before there was no answer for someone whose crops were damaged by droughts or heavy rains, but today people invest in agriculture without any problem because they know for sure that the insurance companies will provide them with their investment back even when facing challenges.

Mr. Ntazinda noted that the target of Bugesera District is that all cultivated areas would be hundred per cent insured, however, it is standing on 2%. The challenges are based on the fact that public awareness is still low.

According to Joseph Museruka, NAIS Program Manager, MINAGRI, over Rwf 9 billion has been collected and paid by farmers. Over Rwf 3 billion has been paid by the Government of Rwanda as a 40% contribution to help farmers access insurance products benefiting over 568,000 crop producers and 95,000 livestock farmers. So far Rwf 5,309,388,565 has been paid to farmers as compensation for losses to insured crops and livestock: Rwf 2,455,065,699 (73% loss ratio) paid to livestock keepers and Rwf 2,854,322,866 (46% loss ratio) paid to crop farmers.