This technical report covers the rapid assessment of agriculture finance and its recommendations, the findings of the situation and gap analysis of the Uganda Agricultural Insurance Scheme (UAIS), and where appropriate, presents the WBG’s recommendations for strengthening the scheme; it also includes a proposal for two additional insurance programs, one for crop and one for livestock, targeted at small-scale farmers
aThank you for the Agriculture Finance Quarterly Newsletter Fotios Stravoravdis. It was great to read about the relaunch of your AgriFin Platform to promote knowledge sharing. Congratulations to you and the team on a successful migration to the Collaborationf for Development (C4D) platform. Happy Holidays to you and to the AgriFinance Community of Practice.
Leora Klapper, Dorothe Singer, Saniya Ansar, and Jake Hess
World Bank Policy Research Working Paper 9078, December 2019
The ability to manage financial risk is especially important for people earning their living through agriculture. Many farmers only get paid once or twice a year, and households need to stretch their earnings across the year by saving or borrowing money. Moreover, agricultural production faces a variety of risks related to both production and markets because of their exposure to weather and disease shocks. Households engaged in agriculture may thus especially benefit from financial inclusion—access to and use of formal financial services. This paper explores the topic of financial risk management in agriculture—how adults who rely on growing crops or raising livestock as their household's main source of income manage financial risk and use financial services. The paper summarizes new data based on a nationally representative survey of about 15,000 adults in 15 lower-middle- and low-income Sub-Saharan African economies collected as part of the World Bank's Global Findex database. The majority of these adults reported suffering a bad harvest or significant livestock loss in the past five years, and most bear the entire financial risk of such a loss. Most adults in agricultural households lack the financial tools—such as insurance, accounts, savings, and credit—that could help them manage financial risks.
Leora Klapper, Dorothe Singer, Saniya Ansar, and Jake Hess.
World Bank Policy Research Working Paper 9078, December 2019
The ability to manage financial risk is especially important for people earning their living through agriculture. Many farmers only get paid once or twice a year, and households need to stretch their earnings across the year by saving or borrowing money. Moreover, agricultural production faces a variety of risks related to both production and markets because of their exposure to weather and disease shocks. Households engaged in agriculture may thus especially benefit from financial inclusion—access to and use of formal financial services. This paper explores the topic of financial risk management in agriculture—how adults who rely on growing crops or raising livestock as their household's main source of income manage financial risk and use financial services. The paper summarizes new data based on a nationally representative survey of about 15,000 adults in 15 lower-middle- and low-income Sub-Saharan African economies collected as part of the World Bank's Global Findex database. The majority of these adults reported suffering a bad harvest or significant livestock loss in the past five years, and most bear the entire financial risk of such a loss. Most adults in agricultural households lack the financial tools—such as insurance, accounts, savings, and credit—that could help them manage financial risks.
