Rwanda’s steady progress in financial inclusion and agricultural insurance has made the country a model for nations seeking to strengthen resilience in the farming sector. Its remarkable strides—anchored in coordinated policies, farmer-centred programmes and strong partnerships—are why Rwanda was selected for a study mission focused on transforming agricultural insurance frameworks across Africa. Today, more than 90% of Rwandans have access to financial services, according to the National Bank of Rwanda, reflecting the government’s long-term commitment to inclusive growth.
Central to this progress is the National Agricultural Insurance Scheme, introduced in 2019 to protect farmers from climate shocks and other risks that threaten food production. The scheme now reaches more than 160,000 crop farmers and nearly 50,000 livestock keepers annually. Government subsidies have made premiums affordable, enabling smallholder farmers to adopt insurance as a critical tool for stability and long-term planning. According to the Ministry of Agriculture and Animal Resources, the initiative has become a cornerstone of agricultural development, safeguarding livelihoods and contributing to food security.
The study visit was supported by the Japan International Cooperation Agency under the Index-based Agricultural Insurance Promotion programme, demonstrating how strategic partnerships continue to shape agricultural development across the region. It also reflects the broader collaboration between JICA and the United Nations Development Programme in Ethiopia, where efforts are underway to strengthen rural finance and expand the reach of agricultural insurance. Through this partnership, Rwanda’s experience is being used to guide Ethiopia as it works to adapt proven regional models to its own context.
During the mission, participants observed features of the Rwandan scheme that hold practical value for Ethiopia. Strong government leadership has been central to the programme’s success, with the state covering 40% of insurance premiums to encourage uptake. Rwanda’s approach relies heavily on collaboration between government institutions, insurance companies, cooperatives and independent assessors, each playing a clearly defined role. Technology has become another pillar of the system, with tools such as GPS mapping and drones used to enhance transparency, ensure accurate monitoring and speed up payouts. Since its establishment, the scheme has disbursed more than RWF 4.4 billion to farmers, reinforcing trust and demonstrating its effectiveness in times of loss.
Ethiopia’s Rural Finance Service Unit, established within the Ministry of Agriculture with support from UNDP and JICA, has already begun taking steps toward institutionalising agricultural insurance within the country’s policy framework. A roadmap has been developed to scale up the initiative, expand awareness campaigns targeting farmers, and pilot bundled services that link insurance with credit, inputs and cooperative programmes. These efforts aim to increase adoption, strengthen resilience and enable farmers to invest confidently in their fields.
Rwanda has also expressed interest in establishing a government-to-government partnership with Ethiopia, potentially extending cooperation beyond agricultural insurance into broader transformation efforts. This collaboration could support financial inclusion, strengthen agricultural commercialisation and accelerate knowledge exchange between the two countries.
Although challenges remain, the mission underscored that transformation is possible when strong leadership, innovation and partnerships converge. With the right systems in place, Ethiopia can build a more resilient agricultural sector—one where farmers are shielded from risks and empowered to produce with confidence.
Source: UNDP
