COUNTRY PRESENTATION UGANDA INDEX – INSURANCE FOR LIVESTOCK IN THE IGAD REGION 24th – 26th June 2019 ILRI- Ethiopia COUNTRY PRESENTATION UGANDA

Outline Introduction Government Interventions to Livestock shocks The Uganda Agriculture Insurance Scheme Potential for Livestock Index insurance Investment opportunities Way forward

1. Introduction The Agriculture Sector in Uganda: Critical driver of economic growth and poverty alleviation, Contributes 23% of the country’s GDP, approximately 50% of the value of exports 20% of the country’s total foreign exchange earnings Feeds the over 39 million Ugandans.

Introduction---cont’d Covariant risks Despite the aforementioned sector’s contribution to the economy, the sector remains highly exposed to covariant risks Drought ( Karamoja and the cattle corridor and FAO survey) Pests and Diseases Flooding Poor quality inputs, postharvest losses

2. Government Interventions to drought shocks The GoU has a well defined framework to manage natural disasters Contingency Fund based in Office of the Prime Minister (OPM) National Disaster Preparedness and Management (NDPM) Committee (based in Office of the Prime Minister) District based DDPM Sub-county based disaster management committees Early warning unit based at Ministry of Agriculture (coordinates meteorological triggers to stakeholders, builds capacity at local government levels and spearheads response during disasters) The Uganda Agriculture Insurance Scheme

3. THE UGANDA AGRICULTURE INSURANCE SCHEME 5 year Pilot, started June 2016 Provides both livestock Insurance Livestock insurance : Standard accident and mortality indemnity-based policy Crop insurance : Multi peril crop insurance, Drought Weather index insurance and Area Yield index Insurance. It’s a PPP ( Agro-consortium of 11 insurance companies) and MoU in place Government provides premium subsidy (UGX 5Bn annual) 30% subsidy for Large scale Farmers 50% subsidy for Small scale farmers 80% subsidy for high risk and disaster prone areas Uptake : over 75,000 farmers and pastoralists ( Approximately 30% are livestock ) Awareness : Government supported and by the Development partners Re- Insurance : By Swiss-re and Uganda re, among others

4. Potential for Livestock Index insurance There is Political will Government is already providing a Premium subsidy under the UAIS Institutional and policy Frameworks are in place There is an increasing demand for livestock and livestock product from within and outside Uganda Karamoja (Northern Uganda and the Cattle corridor)

5. Opportunities for Investment Data: expanding investment in high quality agro meteorological data Farmer statistics collection, management and dissemination (efficient databases) Sensitisation and awareness (Financial Education) Digital financial services to reach out to smallholder farmers Capacity building for relevant stakeholders Sensitisation of farmers and extension workers.

6. Way forward (Areas for strengthening) Contingency framework to allow for speed and liquidity because of increasing frequency and impact of drought in the Horn of Africa. Trigger conditions have to be properly articulated and bureaucracies avoided. Disaster preparedness and management policy and structures focusing on preparedness. Early warning systems, preferably community based Climate change adaptation specifically adoption of climate smart technologies Establishment and support of Community Disaster Management Committees Operationalisation of National Adaptation Plans of Action (NAPA) Transformation from Asset replacement to Asset Protection