KAMPALA- Ugandan large-scale farmers are set to benefit from a new insurance initiative launched by the Agro Consortium (U) Ltd (AIC) and The Grain Council of Uganda (TGCU).
The initiative supports the government-backed Large-Scale Farmers Financing Scheme (LSF), aiming to bolster agricultural financing and risk management.
The comprehensive insurance coverage will protect farmers against climate-related hazards, including drought, excessive rainfall, and natural disasters.
“Agriculture insurance is a transformative tool for large-scale farmers. Our goal is to revolutionize insurance practices, ensuring that farmers are protected from the moment seeds are planted until harvest,” said John Makosya, Chief Operations and Impact Officer at Agro Consortium.
Makosya added that education and advocacy are central to their mission, which is why they incorporated a training workshop in the launch to educate farmers on risk coverage, claims processes, and policyholder responsibilities.
“The future of Ugandan agriculture lies in resilience and innovation, and together, we aim to build a sector that not only feeds the nation but also drives economic growth and sustainability,” Makosya said.
Agriculture remains a crucial sector in Uganda, contributing 24% to the country’s GDP and employing about 70% of the population. However, over 80% of Ugandan farmers rely on rain-fed agriculture, making them vulnerable to climate change-induced risks.
The uptake of agricultural insurance remains low, with only 4.8% of farmers adopting crop insurance during the main planting season.
“As a farmer, I understand firsthand the challenges of unpredictable weather, pests, and financial insecurity. The LSF aligns with Uganda’s broader agricultural development goals, including enhancing food security, reducing borrowing costs, and promoting sustainable farming practices,” said Robert Mwanje, Chairman of The Grain Council of Uganda.
Mwanje added that the government’s support in de-risking agriculture insurance is crucial, as it creates an enabling environment for financing and lowers borrowing costs for farmers.
“This partnership with Agro Consortium is a lifeline, helping farmers safeguard their investments and livelihoods. It’s time to shift from uncertainty to solutions that build resilience and profitability for all involved,” Mwanje said.
According to Makosya, the success of the LSF will depend on continuous collaboration among stakeholders, including financial institutions and farmers themselves.
“Our goal is to build a sustainable agricultural system that encourages commercial-scale production and provides farmers with a stable financial environment. However, farmers must embrace agricultural insurance to fully reap its benefits,” Makosya said.
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