Agriculture is the mainstay of the Rwandan economy with 76 per cent of the population employed in the sector.

It is also one of the top drivers of growth, with agro-processing seen as a key area that will contribute to the creation of 200,000 off-farm jobs annually for the youth under the second Economic Development and Poverty Reduction Strategy (EDPRS II).

The sector, however, continues to be ignored by players in the financial industry, including insurers, arguing that agriculture is risky. In fact, only 4 per cent of the total loans disbursed by banks in the first six months of the year were to agriculture, while about two or three insurance firms have products targeting farmers.

This has undermined the potential of programmes like modernisation of agriculture and agro-processing ventures, which are aimed at making farming a sustainable venture. The question therefore, is; apart from the government, who else can farmers count on for support to help improve the sector, make it commercial-oriented as well as sustainable and more profitable?

One would expect that as the government pushes for commercialisation of the agricultural sector, insurers would take advantage and develop products targeting farmers. This would also help deepen the country’s insurance penetration levels that presently stand at a miserable 3 per cent of the population.

With micro-insurance schemes already in the works, more firms should come on board to support farmers by providing innovative products that will help cushion the sector, giving farmers a soft landing in case of calamities. Otherwise, if insurers, like bankers, continue shunning agriculture, it could affect EDPRS II’s targets.