The Ministry of Finance and Economic Planning (MINECOFIN) and the Rwanda Mines, Petroleum and Gas Board (RMB) are working on a proposed climate insurance scheme for mine and quarry workers that would “pay out automatically when a climate event occurs” to protect them against income lost because of climate-related disruptions. ALSO READ: Govt moves to protect miners The New Times looks at why and how the insurance scheme is set to be established. Why was climate insurance for mine workers devised? Information shared by the Ministry of Finance and Economic Planning shows that mining and quarrying is one of Rwanda’s fastest-growing sectors, employing about 92,000 people as of 2025. It says that as the sector expands, more households depend on regular mining income. However, “many workers, particularly casual and daily-paid workers, earn only when they work,” the ministry said. ALSO READ: About 80% mine workers lack written contracts – workers’ union MINECOFIN explains that “when heavy rainfall, flooding or unstable ground makes mining sites unsafe, operations may need to pause and workers can lose income immediately”. “These safety suspensions are essential to protect lives, but they also create a need to protect workers’ livelihoods during climate-related disruptions.” A range of measures, it explains, can help address this risk, including stronger occupational safety, social protection, savings mechanisms and other forms of insurance. “Climate, or parametric, insurance could complement these measures by providing rapid financial support when predefined weather conditions are met.” ALSO READ: Probe names major hazards affecting miners’ safety, health Under this approach, it says, a fixed payment would be triggered automatically when an independently measured indicator, such as rainfall, exceeds an agreed threshold. Workers would not need to submit individual claims or prove losses, helping payments reach affected workers quickly and efficiently. “The government is assessing climate insurance as a complement to existing protections, with a focus on ensuring that any proposed scheme is practical, affordable and financially sustainable.” What climate risks would the insurance cover? The main climate risk under consideration is excessive rainfall, which workers and mining operators identified as the leading cause of work disruption and lost income. Prolonged or intense rain can also lead to flooding, landslides, water entering mining pits and unsafe access to sites. The proposed insurance would use a rainfall-based trigger measured over several consecutive days at or near participating mining sites. Data would be provided by Meteo Rwanda and cross-checked against satellite-based records to support accuracy and transparency. Coverage would initially focus on the long rainy season from March to May, when disruptions are most severe, with the possibility of extending cover to the September–December rainy season. “The scheme is designed specifically to protect workers against income lost because of climate-related disruptions. Accident, disability and death risks would remain covered through existing occupational and insurance arrangements,” MINECOFIN said. How would workers benefit, and what would they receive? If rainfall at a participating site exceeds the agreed trigger level, every enrolled worker at that site will receive the same fixed cash payment automatically, without having to submit an individual claim, MINECOFIN explained. ALSO READ: Mining sector records over 90,000 jobs Payments would be made directly to each worker’s mobile-money wallet, bank account or SACCO account, with the aim of reaching workers within about two weeks of the event being confirmed. The payment amount is still being finalised. “Indicative figures ... ranged from Rwf15,000 to Rwf25,000 per qualifying event, broadly equivalent to several days’ earnings for many casual workers. The final amount will depend on pricing, affordability and the contribution structure agreed with stakeholders.” For workers and their families, the scheme would provide timely income support when work is disrupted, helping reduce the need for costly borrowing or distress sales of household assets. It would also offer a simple and transparent payment rule applied consistently to all enrolled workers at a site, supported by publicly available rainfall information and existing digital payment channels. “As with all index-based insurance, payments may not match every individual loss exactly. Clear communication in Kinyarwanda, informed consent and an accessible complaints mechanism will therefore be central to the scheme’s design.” Who would pay the premiums? The emerging approach is for premiums to be shared among participating stakeholders. Workers would make a modest and affordable contribution, while mining companies or cooperatives may also contribute. International experience suggests that shared financing arrangements can support broader participation and long-term sustainability. ALSO READ: Nearly 75,000 mine workers need training, says union “The final contribution structure has not yet been agreed and remains under discussion with stakeholders,” MINECOFIN says. The ministry would provide overall policy leadership and coordination, in line with the national insurance sector strategy and disaster risk financing priorities, while helping to identify sustainable financing arrangements. Mining companies and cooperatives would serve as group policyholders. They would maintain verified worker records, facilitate transparent collection of worker contributions with consent, provide relevant operational and site information, and potentially contribute towards premiums. The Rwanda Mines, Petroleum and Gas Board would support implementation through its sector oversight and safety mandate, including identifying participating sites and providing information on weather-related work suspensions. Other partners would also play important roles. The National Bank of Rwanda would guide regulatory approval and consumer protection; insurers and reinsurers would underwrite the scheme and pay claims; the Rwanda Extractive Industry Workers Union (REWU) and Rwanda Mining Association (RMA) would support stakeholder engagement; and Meteo Rwanda would provide reliable weather data. When could the scheme be launched? Stakeholders agreed on the key steps required before the scheme can be launched. These include verifying worker and site data, testing the rainfall trigger against historical events, finalising pricing and contribution arrangements, securing underwriting and reinsurance, and obtaining regulatory approval. ALSO READ: Govt publishes list of top 10 ready-to-mine blocks A supervised pilot is also under consideration. This could involve a limited group of workers and potentially operate under the National Bank of Rwanda’s regulatory sandbox, allowing enrolment and payment systems to be tested before a wider roll-out. “Timelines will be confirmed as these decisions are finalised, and the public will be kept informed. The initiative reflects the Government’s commitment to a productive, safe and inclusive mining sector, while strengthening protection for workers against the climate risks they face,” MINECOFIN said.
