Rwandan farmers and livestock keepers are gaining a powerful ally in Old Mutual, whose crop and livestock insurance programs aim to safeguard livelihoods from the risks posed by natural disasters, diseases, and other unforeseen challenges.
In partnership with the Ministry of Agriculture and Animal Resources (MINAGRI), Old Mutual has introduced a cost-sharing insurance model where the government subsidizes 40% of premiums, and farmers contribute the remaining 60%. This subsidy, designed to make agricultural insurance affordable and accessible, is also available through other insurance providers in Rwanda.
Mucyo Janvier, the Distribution Manager at Old Mutual, explained the program’s goals, saying: “The main message is simple: insurance isn’t just about compensation; it’s about ensuring the future of a farmer’s livelihood. By working with districts, agronomists, veterinary officers, and cooperatives, we can reach farmers directly and ensure they understand the value of insurance in securing their future.” He added that the program has already reached hundreds of farmers and officials in Rubavu, Musanze, and Kayonza districts, with efforts to expand nationwide.
Farmers can insure high-value crops such as maize, rice, potatoes, beans, and chili, as well as livestock, including cattle, pigs, and chickens. For example, maize farmers investing Rwf 630,450 per hectare pay a premium of Rwf 52,012, with Rwf 20,805 covered by the government and Rwf 31,207 paid by the farmer. Potato farmers with an investment of Rwf 2,418,800 per hectare pay Rwf 193,504, split into Rwf 77,402 from the government and Rwf 116,102 from the farmer. Livestock insurance follows a similar structure, with premiums based on the animal’s value. A cow valued at Rwf 1,000,000 requires a premium of Rwf 45,000, with Rwf 27,000 paid by the farmer and Rwf 18,000 subsidized by the government.
Farmers and cooperative leaders have praised the initiative. Mukandanga Angélique, a pig farmer in Musanze, said: “Insurance shields us from financial collapse caused by theft or diseases. It helps us recover quickly and gives us the confidence to expand our activities.”
Similarly, Habarurema Evariste, a cooperative leader, noted: “Floods and landslides used to destroy our crops, leaving us with nothing. Now, insurance gives us hope. Even if disasters strike, we’ll be compensated, ensuring our livelihoods remain secure.”
Mucyo also emphasized the program’s role in Rwanda’s agricultural transformation: “With nearly 75% of Rwandans engaged in farming and livestock, this program aligns with the country’s vision of agricultural modernization. We aim to make farming more professional and secure, enabling farmers to invest in their future without fear of devastating losses.”
The program also facilitates access to financial services, as insured farmers are more likely to qualify for bank loans to invest in advanced farming techniques. Government officials have commended the initiative for its economic impact. Jean Ngendahayo, head of agriculture in Musanze District, said: “This program ensures that even in the face of losses, farmers can recover and continue contributing to the economy. It’s a vital tool for resilience and growth.”
With over a century of experience in Africa and more than a decade in Rwanda, Old Mutual is at the forefront of efforts to modernize the agricultural sector. By protecting farmers’ investments and supporting their recovery, the program is not just a safety net but a lifeline for Rwanda’s agricultural transformation.