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

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

3. 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.

4. 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

5. 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

6. 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

7. 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)

8. 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.

9. 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