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The Uganda Agriculture Insurance Scheme (UAIS) is a Public-Private Partnership (PPP) between the Ugandan government, represented by the Ministry of Finance, Planning, and Economic Development (MoFPED), and the private sector. The MoFPED designated Uganda Insurers Association as the scheme’s implementer. A consortium of ten insurers then formed the Agro Consortium (AIC) to provide agriculture insurance under the scheme.

The scheme’s overarching goal is to ensure that a Ugandan farmer is adequately protected against the effects of agricultural risks, particularly production risks, by instituting measures that will provide an indemnity sufficient to keep the farmer in business. The specific objectives of the Scheme are: –

The scheme’s overarching goal is to ensure that a Ugandan farmer is adequately protected against the effects of agricultural risks, particularly production risks, by instituting measures that will provide an indemnity sufficient to keep the farmer in business. The specific objectives of the Scheme are: –

  • To make agriculture insurance affordable to farmers in Uganda
  • To improve farmer credit access by shielding agricultural loans disbursed by financial institutions from the effects of specific agricultural risks.

This nationwide program provides farmers with insurance premium subsidies of 30% or 50%, depending on whether they are large or small-scale farmers, or an 80% premium subsidy if they are geographically located in a high-risk area.

The scheme began as a 5-year pilot project on July 1, 2016, with the government providing an annual premium subsidy of UGX 5 billion. The scheme has been implemented through:

  • Financial institutions by way of insuring loans disbursed purposely for agricultural production.
  • Direct farmer interface, in their Cooperatives, SACCOs, Area Cooperative Enterprises (ACEs), Village Saving Loan Schemes (VSLAs), etc.
  • Insurance companies with a nationwide branch network and brokerage firms.

The 5-year pilot is set to end on July 30, 2021; Uganda Insurers Association, on behalf of the private sector, appreciates the Government of Uganda’s decision to extend the scheme’s rollout for another four years, ending in 2025. The government’s continued support for the scheme’s implementation has allowed it to gain traction, as evidenced by increased uptake of agriculture insurance and demand for more related products.

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