Enabling smallholder farmers’ investment in Uganda through new agricultural insurance products
In sub-Saharan African countries like Uganda, smallholder farmers face frequent, severe droughts and erratic rainfall patterns, intensified in recent years because of climate change. These hazards are compounded by plant pests and poor-quality seed. UEA research into how Uganda’s smallholder farmers perceive risk led to the development of a new agricultural insurance scheme, a public-private partnership. The scheme now protects about 200,000 smallholder farmers against the major risks to their livelihoods, with demand rapidly rising. This boosts productivity by providing smallholders with the confidence to invest in their farms. Insured farmers increase investment by 60-100%, which offers a safe way out of poverty and is an important step towards food security for the country.