In Uganda, smallholder banana farmers face increasing challenges as climate change brings extreme weather conditions like droughts, storms, and erratic and heavy rainfall. These events threaten livelihoods, damage crops, and leave farmers financially vulnerable. As bananas are both a staple food and a core part of Uganda’s economy, protecting the crops is critical both for the individual farmers and for the Ugandan economy.
In response to these challenges, the NDC Action project, alongside partners, has introduced Uganda’s first picture-based insurance scheme aimed specifically at smallholder banana farmers. The scheme overlays an existing weather index insurance, and accounts for climatic and non-climatic damages to banana plantations that cannot be captured by the weather index insurance.
The picture-based insurance offers farmers a way to quickly recover from climate-related damage through a streamlined process using their smartphones. After farmers take geo-tagged baseline photos of their plantations, they submit real time images of crop damage, which are cross-checked with the baseline to allow for faster compensation. This eliminates most of the need for physical assessments by insurance agents, reducing the cost of premiums and making the product more accessible.
Climate smart farming
The hybrid insurance solution goes beyond compensation. It is bundled with climate-smart farming guidance. Farmers who submit images showing signs of pests or disease will receive immediate feedback and advice on how to manage these challenges. This is a crucial feature in Uganda, where many farmers struggle to afford inputs such as fertilizers, which are essential for optimizing yields.
Champion Farmers have been trained to raise awareness about the scheme, helping to register fellow farmers and spread knowledge of the benefits. By offering both financial protection and practical guidance, the insurance promotes yield optimization, creating opportunities for farmers to access finance and further invest in their crops.
Ugandan banana farmers gain first-ever insurance to tackle climate impacts
Helping smallholder farmers and bolstering national food security
Currently, the insurance scheme is being demonstrated by around 300 farmers in the Bushyeni region in Southwestern Uganda, and another 300 in the neighbouring Sheema region.
Based on the preliminary success of this demonstration, the project partners estimate that there is significant potential to scale the product to reach at least 50.000 banana farmers in Uganda, bolstering national food security while helping smallholders adapt to the ongoing impacts of climate change.
This initiative is part of broader efforts under the NDC Action project to translate Uganda’s climate goals into tangible outcomes that improve resilience for vulnerable communities.
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Tags: agriculture, Insurance, NDC Action, uganda
About the picture-based insurance partnership structure :
The picture-based insurance has been developed and is introduced in a collaboration with ACRE Africa – a company specialized in agro-insurance products, AIC – a public private partnership for the Uganda Agricultural Insurance Scheme, and the Banana Industrial Research and Development Centre (BIRDC) – organizing more than 5000 banana farmers in cooperatives in Southwestern Uganda.
About NDC Action:
The NDC Action Project is a joint initiative between UNEP and its collaborating centre, the UNEP Copenhagen Climate Centre that helps 10 partner countries translate their climate goals into concrete strategies and actions, ready for implementation and financing.
