Lack of appropriate insurance policy cover to the agricultural sector has affected the rate at which Umurenge SACCOs advance credit facilities to farmers.A report tabled by the parliamentary committee on economy and trade, last week, notes with concern that insurance firms are unwilling to cover credit advances by Umurenge SACCOs to farmers who constitute the majority of their clients."In case of farm failure…the loss is big,” committee vice-chairman Rwigema Gonzague told the plenary chaired by Speaker Rose Mukantabana.Umurenge SACCO is a government initiative intended to make financial services available to majority Rwandans as a tool to fast track development agenda.However, in trying to mitigate the issue of unpredictability of the climate, the ministry of agriculture last week launched the first ever farmer’s insurance scheme dubbed Hinga Urishingiwe.The insurance is expected to relieve farmers from incurring losses due to unfavourable weather conditions like drought through compensation. The programme is being implemented in partnership with Syngenta Foundation for Sustainable Development (SFSA), a none-profit organisation based in Switzerland. It aims at creating value for small scale farmers in developing countries. Others in the partnership are One Acre Fund, Swiss Re Corporate Solutions and Soras Insurance Company.Other isues confronting the sector, as highlighted the report, range from weak management structure to lack of convenient and secure working environment.The committee reported that districts were forcing management of the Saccos to acquire business premises beyond their means, forcing them to use members’ money in non-income generating activities.The committee reports that by end of December 2011, Umurenge SACCOs registered deposits and gross loans amounting to Rwf22.5 billion and Rwf4.7 billion respectively.Contributing to the debate, MP Constance Mukayuhi Rwaka criticised the committee for referencing its work with what she called ‘outdated statistics’ yet the latest information is readily available."SACCOs have had their operations computerised and deposits have grown…your report does not give a true picture of the current situation,” she said.The central bank’s quarterly review of the monetary policy and financial sector performance reports that by June 2012 Umurenge SACCOs had registered a healthy performance with deposits and gross loans of Rwf30.2bn and Rwf10bn respectively.Taking into account 2011 performance, this translates into performance improvements of 34.2% on deposits and 112.7% for credit advances.According to the central bank report, Umurenge SACCOs also registered achievements in IT infrastructure paving way for computerisation of their operations and consolidation process.The central bank reported in the review that it is conducting a sustainability study on SACCOs taking into account such matters as adequate organizational structure and supervisory approach on a cooperative bank structure model.Government is optimistic that Umurenge SACCOs’ improved performance shall translate into rural financial inclusion and also increase credit needed to support rural based micro businesses and projects.