1. AGRICULTURAL INSURANCE IN TANZANIA
PIVATE & PRIVATE SECTOR ROLES AND RESPONSIBILITIES
DAR ES SALAAM 9TH JULY 2018 By
Dr Mukama Charles
Agricultural Risk Management Focal Point
Ministry of Agriculture, Animal Industry and Fisheries
Uganda

2. MOTIVATION SITUATION ANALYSIS CONSTRAINTS Africa population: 1.2bn
Labour force: 65% of the population
Small holder farmers: 33m (Uganda 5.3m)
Agric. growth less than Population growth
Africa - Net importer
Multitude of Agricultural Risks
Subsistence system
Poor technology
Liberalized economy – increases vulnerability of small holder farmers

3. AGRICULTURE DEVELOPMENT NATIONAL AGRICULTURE INVESTMENT
MOTIVATION
PUBLIC FRAMEWORKS
DELIVERABLES
COMPREHENSIVE AFRICA
AGRICULTURE DEVELOPMENT
PROGRAM
Target - Farmers
Allocation of 10% of National budgets to Agriculture: $ 0.33trillion
Private-Sector investment commitment to agriculture of over $10 billion.
Agriculture for economic development, Growth - 6%
NATIONAL AGRICULTURE INVESTMENT
PLANS
GROW AFRICA
(NEPAD + WEF)

4. Weather Index Insurance in Uganda (Component of COMRAP 2010-15)
DELIVERABLES
COMESA, UNDP, Centenary Bank and Lion Assurance
Reduce credit risk on farmers’ loans
Availability of financial services to famers
Promote Commercial Farming
Increase production
Food security and Livelihoods
Securing buy-in
Sensitizing of actors
Bankers
Insurance comps.
Policy makers
Meteorology
Designing of products
Carried out studies
Caries out pilots

5. Agricultural Insurance Scheme in Uganda
AGRICULTURAL SECTOR STRATEGIC PLAN
TOOLS ASSESSMENT
(AGRIC INSURANCE)
2015/ /21
ARM
DELIVERABLES
Access to Technoloy
Reduce Agric. Risks
Promote Commercial Agric.
Production & Exports
Food Sec. and Livelihoods
Source PARM Study: Annual Economic impact in Uganda Est: USD 606m to USD 804m per annum ( 2.3% - 3.1% of Agric. GDP).

6. Agricultural Insurance Scheme in Uganda 2016
Formation And Implementation (Public & Private Coop.))
Ministry of Finance; To provide subsidy funds and M&E
Ministry for Agriculture: Technical Data on Production, yields, various losses & crop and animal husbandry
Provide required extension service and awareness & education.
Meteorological Authority : To provide meteorological data for farmers and insurance companies
Uganda Insurers Association: Organize a consortium of insurance operators.
Designing, marketing, selling of insurance products and claims payment procedures
Awareness and training activities on Insurance and the Scheme.
Uganda Bankers Association: Provide banking services to insurance companies and farmers
Bank of Uganda: Maintain the Escrow Account for the subsidy and payment of subsidy claims .
Insurance Regulatory Authority: Assessment and approval of the product.
Verification and approval of the insurance claims from the insurance companies
Farmer Associations: Mobilize and participate in sensitization & education campaign for farmers and farmer groups
Development Partners: Funds

7. Agricultural Insurance Scheme in Uganda - Implementation
Lessons
Challenges
Technical capacity for development of appropriate product suitable for both Govt. and Regulatory Authority.
Availability and reliability of the technical data.
Capacity to popularize the concept of insurance to the farmers and other actors.
Distribution channels.
Should be part of and parcel of the agricultural devpt. Programs – subsidy and input provision
Govt. should invest in AI indefinitely as part of service delivery program.
Requires involvement of the public and private sector
Stakeholder mapping of the roles with convergent goals, Govt – Socioeconomic and Private with Business/economic.

8. Milestones in Uganda
Agricultural Risk Management has been integrated into the Agriculture Sector Strategic Plan (ASSP),
ARM capacity building at the operational level as well as training of trainers of the extension service providers in MAAIF has been done
ARM has been included in Makerere University Agriculture curriculum.
There is an Early Warning Unit in the Ministry of Agriculture – gives useful information on seasons, food production and impending weather disasters
Scaled up the Extension service human resource structure,
Development of agricultural data center,
Plan for development of an Agricultural Insurance strategy is place with key issues:
To include AI as one of the best practices in crop and animal husbandry
To scale investment in areas that will reduce AI implementation costs such as availability of affordable or free information/data, farmer awareness, training and education, payment systems
Use of the vast extension service structure as part of the implementation channels
Include AI in the Insurance course curriculum
integration of AI activities with those of MFI, rural savings and credit co-operatives and/or other suppliers of credit for agricultural inputs (fertilizers, seeds and planting materials) - ASSP

9. AI, an efficient tool for service delivery.
Conclusions???
AI, an efficient tool for service delivery.

10. UGANDA AT A GLANCE ====thank you=====