In 2019, the Ministry of Agriculture and Animal Resources launched the National Agriculture Insurance Scheme (NAIS) dubbed “Tekana Urishingiwe Muhinzi Mworozi,” the scheme which is subsidized up to 40% by the Government of Rwanda.
Unveiled in Nyanza District, the scheme was meant to mitigate risks and losses incurred by farmers due to unpredictable natural disasters, pests and diseases that affect their livestock and crops.
Following the season 2022A agricultural catastrophe insured farmer experienced, the government of Rwanda has earmarked Rwf82.8Million as compensation for losses farmers incurred in the above period.
The Ministry of Agriculture said that the funds will be disbursed starting this February 3, 2022 in an exercise that will be conducted countrywide.
A total of 64, 840 farmers were registered in the Tekana insurance program in season 2022A with 14, 819, 27 hectares of rice, maize, irish potatoes, pepper and green beans.
“Close to 400 hectares were affected and insurance companies will reimburse farmers with Rwf82,821,851. However a census is being carried to ascertain the impact of the disaster on maize farmers who are still harvesting their produce,” the Agriculture ministry said.
At the national level, the events will be held in Rwamagana and Nyagatare districts of the Eastern Province and Rubavu district, Western Province.
At the three events insurers like the Bank of Kigali Insurance (BK Insurance) will disburse Rwf25.6million, while Sonarwa will dish out Rwf17.9million and Radiant insurance, Rwf 4.1million.
Other farmers in the remaining districts will also be reimbursed by the insurance companies that currently collaborate with government in the NAIS program ((Prime, Radiant, Sonarwa, BK, and UAP).
The NAIS Achievements
In implementing the NAIS program, under the Strategic Plan for Agriculture Transformation phase 4 (PSTA 4), the government intended 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.
The scheme was also to enable the farmers to easily access financial services and ensure flow of credit to the agriculture sector. So far over Rwf2.024billion has been offered in agro loans offered with farm produce as the loan guarantee.
Since 2019, farmland that has been insured equals to 48,609.27 hectares.
The Government has offered Rwf591.5 million in farm inputs and seed subsidies (in which government covers 40% of the cost), while crop farmers have received Rwf672.8 million and livestock farmers have received Rwf470.4M in insurance reimbursement.
Currently there are 285815 domestic animals (cows, chicken and pigs) insured with the majority being poultry (228,961).