Only six per cent of farmers in Rwanda currently have crop and livestock insurance, resulting in substantial losses during extreme weather events such as droughts, flooding, hail, and landslides, according to the Rwanda Agriculture and Animal Resources Development Board (RAB). In contrast, farmers whose crops and livestock are insured are set to receive compensation following the unusual dry spells that affected Agriculture Season A, which began in September. ALSO READ: National Agriculture Insurance Scheme to go countrywide Alex Nizeyimana, a farmer from Ngoma District, is part of a farming group that expects compensation from insurance companies after being affected by recent severe droughts. “During the current farming season, we were hit by an unexpected drought. Our land became almost like a desert. We have already declared our losses to the insurance companies since our crops were insured. Currently, we have 70 hectares of beans that were insured. This means that next season we will have the investment to farm again,” he explained. Nizeyimana is among thousands of farmers affected by unusual dry spells in various districts, including Ngoma, but very few had insured their crops. More than 23,000 families have received food assistance following prolonged dry spells in parts of Kayonza District. Meanwhile, Nyamasheke District reported that preliminary figures indicate more than 2,500 families suffered crop losses due to intense drought throughout November, which ended without any rainfall. ALSO READ: Inside Rwanda’s new livestock insurance scheme “There is a need to expand crop and livestock insurance subsidies since all crops and animals are affected by drought. Over the past three years, we were compensated after three cows died. Last year, we were also compensated for soybean losses. Uptake of insurance remains low due to poor mindsets and lack of awareness among farmers, while some officials in charge do not put in enough effort,” Nizeyimana noted. Immaculee Mukankusi, a farmer from Nyamagabe District, lost a cow valued at Rwf700,000. However, thanks to embracing livestock insurance, she was compensated. “I insured my cow for Rwf21,000. When it died, I received a cheque for Rwf700,000 from the insurance company, which covered the full value of the cow. I urge other farmers to adopt livestock insurance. We also want government officials to facilitate farmers to reach remote areas and mobilise others. I already have two groups to mobilise,” she said. Under the National Agriculture Insurance Scheme (NAIS), locally known as ‘Tekana Urishingiwe Muhinzi Mworozi’, launched in April 2019, the government subsidises 40 per cent of the total agricultural insurance premium. This enables farmers to secure insurance coverage at a significantly reduced financial burden. Joseph Museruka, Project Manager of NAIS, said that increasing the uptake of crop and livestock insurance is timely, noting that “more than 10,000 households were affected by extreme weather events between 2020 and 2023.” ALSO READ: Agriculture insurance scheme struggles with uptake “I recall when all 600 hectares in Mwogo Sector, Rurambi wetland, were destroyed just a week before harvest. Farmers were compensated Rwf292 million to reinvest,” he said. How insurance costs are calculated for livestock Museruka explained that the insurance cost is 5.5 per cent of the value of a cow or bull. “For example, if a cow is valued at Rwf1 million, a farmer would pay Rwf55,000 without subsidies. With the subsidy, they pay 60 per cent, equivalent to Rwf33,000, while the government covers Rwf22,000,” he said. For pigs, the insurance cost is 6 per cent of their value. “If a pig is valued at Rwf400,000, the farmer pays Rwf14,000, and the government pays Rwf9,600. When it dies, the farmer receives the full value of Rwf400,000.” For poultry, the insurance cost is 5.5 per cent of its value. “If a chicken is valued at Rwf5,000, the insurance cost is Rwf275. The farmer pays Rwf165, and the government covers Rwf110. When the chicken dies, the farmer is compensated with Rwf5,000,” Museruka explained. ALSO READ: Insurance: Compensations for Rwanda farmers’ loss reach Rwf3bn For fish, the insurance is calculated per gram. “For example, if a fish weighs 1,000 grams and is worth Rwf2,049, the insurance cost is 5 per cent, or Rwf102.45. The farmer pays Rwf61, which is 60 per cent, and the government covers the rest. When the fish dies, the farmer is compensated Rwf2,049.” How insurance costs are calculated for crops For maize, the insured value is based on an investment of Rwf630,450 per hectare. The insurance premium is Rwf52,012, or 8.25 per cent of this value. Farmers pay Rwf31,000, while the government contributes Rwf20,805. For rice, the investment per hectare is estimated at Rwf725,000, with an insurance premium of 7.08 per cent, or Rwf51,330. Farmers pay Rwf30,000, and the government contributes 40 per cent. For other crops, premiums vary: potatoes are insured for Rwf2.4 million per hectare, with farmers paying Rwf116,000; chilli costs Rwf103,000 to insure Rwf2.1 million; French beans Rwf96,000 for Rwf2.1 million; bush beans Rwf19,000 for Rwf397,000; cassava Rwf26,000 for Rwf544,000; soybean Rwf21,000 for Rwf438,000; and greenhouse farming is insured at 1.5 per cent of an Rwf18 million investment. However, farmers argue that the current crop insurance policy, which covers only investments such as seeds and fertilisers, is insufficient. They call for a review to include expected farm output based on the production trend of each crop per hectare. Compensation figures Since the launch of the insurance scheme, Rwf8.8 billion has been distributed as compensation to farmers affected by disasters. “This includes Rwf5 billion for crops and Rwf3.8 billion for livestock,” Museruka said. Despite these efforts, uptake remains at only six per cent. “In Africa, only three per cent of farmers have crop and livestock insurance. Rwanda is slightly ahead which is 6% but there is still a long way to go,” he said. Unlocking access to finance Museruka highlighted that crop and livestock insurance also unlocks access to finance. “Farmers receive approximately Rwf2 billion in bank loans every season thanks to this insurance. The share of agricultural loans is expected to increase from 6.6 per cent in 2024 to 10 per cent by 2029,” he said. More crops, livestock to be covered While the insurance scheme currently benefits many farmers, some crops and livestock remain uncovered. Initially, the scheme included maize, rice, and milking cows in eight districts. Today, at least 13 crops benefit from subsidised insurance, but livestock such as rabbits, goats, and sheep are yet to be included. “We have received requests from farmers to add goats, rabbits, and sheep. Under the agricultural strategy for 2024–2029, they will also benefit,” Museruka said. Janvier Gashema, Vice Mayor in charge of economic development in Nyaruguru District, urged that the insurance scheme be extended to wheat and tea farmers, among other crops. James Gakuru, an employee of Radiant Yacu, emphasised that recent dry spells should serve as a lesson. “It requires continuous mobilisation. When insured, farmers also reduce the financial burden on the government,” he said. He added that farmers affected by disasters should report within 14 days to receive compensation within 30 days. Under the Second National Strategy for Transformation (NST2), the government plans to allocate $25 million (approximately Rwf33 billion) for the rollout of crop and livestock insurance programmes.
