Rwanda is exploring an insurance scheme that would provide mine workers with financial support when heavy rain shuts down mining operations, a disruption that can leave thousands without daily income.
The proposal is designed for workers whose pay depends on the days they work or the minerals they extract. The Ministry of Finance and Economic Planning estimates that the mining sector employs about 92,000 people.
Under the proposed scheme, payments would be triggered when rainfall in a covered mining area reaches a threshold agreed in advance.
This type of cover, known as parametric insurance, relies on weather data rather than individual claims. Meteo Rwanda’s measurements would be checked against satellite information to confirm whether the conditions for a payout had been met.
Registered workers at participating sites could receive between Rwf 15,000 and Rwf 25,000 for each qualifying rain-related disruption.
Payments would be made through mobile money, bank accounts or SACCOs, with the aim of delivering them within two weeks of approval.
The scheme is still being developed. Its final rules, worker contributions and payout amounts have not been agreed.
André Mutsindashyaka, secretary general of the Rwanda Extractive Workers Union (REWU), said workers often lose their earnings when rain makes mining unsafe or forces sites to close.
He said financial support during such stoppages could ease the pressure on workers to remain in dangerous conditions to earn money for their families.
Heavy rain can cause flooding, erosion, mine collapses and unstable ground. The Rwanda Mines, Petroleum and Gas Board (RMB) has urged operators to close sites that pose safety risks and inspect underground mines for water infiltration and other signs of instability.
The proposed cover could initially apply during the March-to-May rainy season, with the possibility of extending it to the September-to-December season. Funding options under discussion include contributions from workers, mining companies and cooperatives, as well as government support.
MINECOFIN would lead policy development, while RMB would help implement the scheme. The National Bank of Rwanda would oversee its regulation.
Miners’ earnings vary according to the minerals they extract and the work they perform. Mutsindashyaka put daily pay at between Rwf 3,000 and Rwf 15,000, with average monthly earnings of about Rwf 60,000. He said low and unreliable incomes contribute to workers leaving the sector.
Aline Uwimana, a mine worker in Gatsibo District, said a week without work during heavy rain in April made it difficult for her family to afford basic needs. Two of her three children are in school, she said, and the lost earnings can push some workers to look for other jobs.
The Rwanda Mining Association has welcomed the proposal. Its chief executive, Deus Kayitakirwa, said a study involving four mining companies in four districts could help identify locations for a pilot programme.
He said workers’ contributions would need to be affordable and that government or development partners could help finance the scheme.
The association, workers and government agencies are still discussing how the programme would be funded and how much eligible workers would receive.
