File size: 126.8 kb
Rwanda’s economy is largely agrarian. Rwanda’s agricultural sector employs over 80% of the country’s workforce and accounts for approximately 33.3% of Rwanda’s GDP and more than 40% of export revenue. More than 70% of Rwandan households who rely on agriculture for a majority of their income are poor and depend on subsistence production for household food requirements. Livestock, particularly dairy cattle, has historically been an integral part of the agricultural production systems in Rwanda. The supplementary income derived from rearing of livestock is a great source of support to the farmers facing uncertainties of crop production, apart from providing sustenance to poor and landless farmers. However, untimely death of cattle could have a debilitating impact on the owner’s income, more so if the owner happens to be a marginal farmer or landless labourer or a dairy farmer. It is to meet this exigency that the livestock (cattle) insurance scheme has emerged as a saviour and security for cattle owners in recent years by providing for indemnity in the event of death of the insured animal.
A carefully designed and well implemented National Agricultural Insurance Scheme can support a range of government policy objectives such as increased access to credit, improved agricultural productivity, reduced vulnerability and social protection. Based on the feasibility and demand side study and in consultation with all key stakeholders involved and engaged in the agricultural value chain, the National Livestock Insurance Scheme has been designed by the team of international experts. The overall scheme architecture can be implemented through a multi-agency framework by selected insurance companies under the overall guidance and control of the Rwandan Government. The Ministry of Agriculture and Animal Resources (MINAGRI) will be primarily responsible to promote insurance through a consultative and participatory approach (addresses the concerns of farmers, private sector players, national and local governments as well as development partners) which establishes an enabling legal and regulatory environment for National Agricultural Insurance Scheme. Public-private partnerships (PPP) can create an environment that is more conducive to agricultural insurance. The essential pillars and achievements of this PPP model include:
Objective of the National Scheme
The Phase I of this project will be implemented in line with the proposed National Agricultural Insurance Scheme so that the learnings from this pilot/ Phase I can directly flow into taking appropriate corrective measures and modifications prior to a national - level rollout. In Phase I the livestock insurance scheme will be implemented in eight districts and in three provinces of Rwanda, based on the following given criterion:
The initial phase will predominantly target: