Agriculture in Rwanda accounts for one-third of Rwanda’s GDP; constitutes the main economic activity for rural households (especially women) and remains the main source of income. Today, the agricultural population is estimated to be a little less than 80% of the total population. The sector meets 90% of the national food needs and generates more than 70% of the country’s export revenues. (Source: Rwanda Development Board).
Much of the agricultural land is rainfed, with little or no irrigation available. This is exacerbated by the fact that more than 68% of Rwandan land is on hillsides with a slope greater than 16%. The majority of agricultural activities are by non-commercialized smallholder farmers, with minimal investment leading to reduced yields and continued food insecurity.
Commercial banks and microfinance institutions are using weather index insurance as a tool to reduce their portfolio at risk when lending to smallholders. This enables rural investment to increase, which in turns provides higher agricultural outputs leading to higher incomes. In addition, weather index insurance provides a safety net against the effects of adverse weather.
MicroEnsure operates two main weather index insurance products in Rwanda :
Insurers: SORAS Assurances Generales LTD
Reinsurers: Swiss Reinsurance Company LTD Delivery Channels:
37,924 (cumulative since project start ; 21,274 end 2013)
Dry spells and excess rainfall.
[Note: Some products have been designed to provide coverage against flooding by indexing the drainage basins.]
Satellite and weather station-based weather index insurance (Irish Potatoes, Maize and Rice)
9% - 14% of the sum insured
$997,575 (end 2013)
$15,396 (end 2013)
MicroEnsure (UK) Limited
David Dorey, Project Manager
Parker Court, Knapp Lane, Cheltenham, GL50 3QJ, UK
+44 (0)1242 526836
+44 (0)7894 193863