Rwanda Launches Subsidized Tender

The Government on Tuesday launched the National Agriculture Insurance Scheme NAIS that will mitigate risks and losses incurred by farmers due to unpredictable natural disasters pests and diseases that affect their livestock and crops. Dubbed Tekana Urishingiwe Muhinzi Mworozi the scheme which is subsidized up to 40 by the Government of Rwanda will also enable the farmers to easily access financial services and ensure flow of credit to the agriculture sector.The market premium rate is 4.5 for livestock insurance while the premium rate for crop insurance will be decided at the beginning of the agriculture season 2020A.Speaking at the launch of the scheme in Nyanza district Minister of Agriculture and Animal Resources Dr. Geraldine Mukeshimana underlined that the Scheme is in line with the governments moveto improve livelihoods of citizens through capacity building and providing support in their respective professions in order to eradicate poverty and maintain the countrys economic growth. We believe that this insurance scheme will empower farmers since their activities will be insured by reputable insurance companies to manage risks and losses amongst the smallholder farmers. Our intention is to get all smallholder farmers covered with this insurance scheme Minister Mukeshimana said.In the initial phase livestock insurance product will cover dairy cattle including both cross and exotic breeds in eight selected districts while the crop insurance scheme will cover maize and rice farmers in ten districts. The crop insurance scheme will be introduced in the subsequent Season A 2020.In this pilot phase livestock insurance product is being rolled out in Nyanza Gicumbi Musanze Rwamagana Gatsibo Ruhango Nyagatare and Burera districts while the crop insurance product will next season A 2020 be introduced in Gatsibo Nyagatare Bugesera Gisagara Kirehe Gicumbi Huye Rulindo Ngoma and Rwamagana districts. The scheme will be scaled up countrywide later.This insurance is being implemented through a multi-agency framework composed of selected insurance companies under the overall guidance and control of the government. Agriculture is the backbone of Rwandas economy. The sector accounts for a third of the countrys GDP and close to 70 of working individuals aged 16 years or above are employed in agriculture EICV 4. With the National Agriculture Insurance Scheme the countrys economy will be able 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. As per the National Strategy for Transformation NST1 Agriculture is central to the structural transformation of Rwandas economy therefore contributing to economic growth exports job creation increased land and labour productivity.