Tag Rwanda

Rwandan farmers and livestock keepers are gaining a strong ally in Old Mutual, whose crop and livestock insurance coverage applications goal to safeguard livelihoods from the dangers posed by pure disasters, ailments, and different unexpected challenges.

In partnership with the Ministry of Agriculture and Animal Resources (MINAGRI), Old Mutual has launched a cost-sharing insurance coverage mannequin the place the federal government subsidizes 40% of premiums, and farmers contribute the remaining 60%. This subsidy, designed to make agricultural insurance coverage reasonably priced and accessible, can also be accessible via different insurance coverage suppliers in Rwanda.

Mucyo Janvier, the Distribution Manager at Old Mutual, defined this system’s objectives, saying: “The main message is simple: insurance isn’t just about compensation; it’s about ensuring the future of a farmer’s livelihood. By working with districts, agronomists, veterinary officers, and cooperatives, we can reach farmers directly and ensure they understand the value of insurance in securing their future.” He added that this system has already reached lots of of farmers and officers in Rubavu, Musanze, and Kayonza districts, with efforts to increase nationwide.

Farmers can insure high-value crops resembling maize, rice, potatoes, beans, and chili, in addition to livestock, together with cattle, pigs, and chickens. For instance, maize farmers investing Rwf 630,450 per hectare pay a premium of Rwf 52,012, with Rwf 20,805 lined by the federal government and Rwf 31,207 paid by the farmer. Potato farmers with an funding of Rwf 2,418,800 per hectare pay Rwf 193,504, break up into Rwf 77,402 from the federal government and Rwf 116,102 from the farmer. Livestock insurance coverage follows an identical construction, with premiums based mostly on the animal’s worth. A cow valued at Rwf 1,000,000 requires a premium of Rwf 45,000, with Rwf 27,000 paid by the farmer and Rwf 18,000 sponsored by the federal government.

Farmers and cooperative leaders have praised the initiative. Mukandanga Angélique, a pig farmer in Musanze, stated: “Insurance shields us from financial collapse caused by theft or diseases. It helps us recover quickly and gives us the confidence to expand our activities.”

Similarly, Habarurema Evariste, a cooperative chief, famous: “Floods and landslides used to destroy our crops, leaving us with nothing. Now, insurance gives us hope. Even if disasters strike, we’ll be compensated, ensuring our livelihoods remain secure.”

Mucyo additionally emphasised this system’s position in Rwanda’s agricultural transformation: “With nearly 75% of Rwandans engaged in farming and livestock, this program aligns with the country’s vision of agricultural modernization. We aim to make farming more professional and secure, enabling farmers to invest in their future without fear of devastating losses.”

The program additionally facilitates entry to monetary companies, as insured farmers usually tend to qualify for financial institution loans to put money into superior farming methods. Government officers have recommended the initiative for its financial influence. Jean Ngendahayo, head of agriculture in Musanze District, stated: “This program ensures that even in the face of losses, farmers can recover and continue contributing to the economy. It’s a vital tool for resilience and growth.”

With over a century of expertise in Africa and greater than a decade in Rwanda, Old Mutual is on the forefront of efforts to modernize the agricultural sector. By defending farmers’ investments and supporting their restoration, this system isn’t just a security internet however a lifeline for Rwanda’s agricultural transformation.

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Rwanda is attracting extra funding from worldwide companies, with a big rise in Foreign Private Capital (FPC) inflows with Mauritius, the United States, and Europe being the most important drivers of the expansion, in accordance with a brand new report.

In 2023, these inflows grew by 33.8%, reaching USD 886.9 million, up from USD 663 million in 2022, as per the Foreign Private Capital 2024 – Survey Report compiled yearly by the National Institute of Statistics (NISR). The survey was launch this Wednesday.

This highlighted improve reveals that extra international firms and buyers are selecting Rwanda as a spot to do enterprise, serving to to develop the financial system and create jobs.

FPC refers to cash that companies or buyers from outdoors the nation convey into Rwanda to begin or develop firms. This can embrace opening factories, increasing present companies, or funding giant initiatives like actual property developments and expertise methods.

Biggest Winners: Jobs and Economic Growth

The report highlights how FPC has had a direct affect on the financial system. The complete turnover (or gross sales income) of foreign-funded firms in Rwanda grew by 18.2%, reaching USD 3.6 billion in 2023. This accounts for almost 26% of the nation’s GDP, displaying how a lot these companies contribute to Rwanda’s financial exercise.

The improve in funding has additionally meant extra jobs for Rwandans. The variety of folks employed by firms funded by FPC rose by 20.3%, with 59,916 folks employed in 2023 in comparison with 49,790 in 2022. Local managerial roles additionally elevated considerably, with Rwandans taking on 39.7% extra management positions than the earlier yr.

Which Sectors are Attracting Investment?

The monetary sector introduced in essentially the most funding, with USD 236 million, making up 26.6% of complete inflows. This was adopted by manufacturing (USD 165.2 million, 18.6%) and data and communication expertise (ICT) (USD 107.4 million, 12.1%).

One standout sector was agriculture, which noticed investments develop by a powerful 123.5%. Real property additionally made headlines with a large 1,552% improve in international funding. This means that worldwide buyers see alternatives in Rwanda’s rising cities and housing market.

Who is Investing in Rwanda?

Mauritius emerged as the highest supply of FPC inflows, contributing 29.4% of the overall. However, there have been notable drops in investments from some international locations. For instance, inflows from Kenya decreased by 34.6%, and people from China fell by 38.1%.

On the opposite hand, North America noticed important progress, with investments from the USA rising by 123% from USD 30.7 million in 2022 to USD 68.3 million in 2023. Although these investments accounted for less than 7.7% of complete inflows, they point out rising curiosity from the area.

Europe was one other main contributor, accounting for 27.3% of complete FPC inflows. France led the way in which with a 295% improve, reaching USD 62.7 million, whereas Germany noticed a exceptional 1,350% progress, contributing USD 57 million.

Despite these successes, not each sector noticed progress. Investments in wholesale commerce and different associated actions decreased barely. Gender gaps in employment stay a problem, as girls maintain solely 33% of expert technician roles in comparison with males at 67%.

What Makes 2023 Unique?

One uncommon discovering is the sharp rise in actual property investments, which jumped by over 1,500%. Additionally, whereas native employment in FPC firms grew by 22.5%, the variety of international staff dropped by 28.1%, displaying a shift towards hiring Rwandans. This primarily implies that incoming international buyers are more and more getting the native expertise they should run their companies. It may be partly resulting from authorities coverage, which is requiring firms to rent locals.

The report paints a hopeful image for Rwanda’s financial system. As extra international buyers convey their cash and experience into the nation, sectors like agriculture, actual property, and manufacturing are set to thrive. This is not going to solely increase financial progress but additionally create extra alternatives for Rwandans to tackle management and technical roles.