Bridging the gap: How Uganda can extend social insurance to farmers

Uganda's smallholder farmers, the backbone of the nation's agriculture, have long been excluded from contributory social insurance schemes.

However, research from the Economic Policy Research Centre (EPRC) offers hope.

By adopting successful strategies from countries like Kenya, Costa Rica, and Colombia, Uganda could significantly expand social insurance coverage to this vital yet vulnerable sector.

EPRC's findings highlight three key strategies to bring informal farmers under social insurance:

Collective insurance through cooperatives

Countries like Kenya have shown that collective agreements between social security funds and farmers' cooperatives simplify the administrative process, reducing transaction costs and ensuring that even remote farmers are covered.

Leveraging Uganda’s existing cooperative network could streamline this process, offering a practical solution to a long-standing issue.

Mandatory registration with income-based contributions

Another approach involves mandatory farmer registration under a contributory system. This would ensure progressive compliance, with contributions scaled to income levels.

The Parish Development Model (PDM) offers a unique opportunity to integrate this system, leveraging its digital infrastructure to minimize costs and enhance coverage.

Differentiated contribution rates

Acknowledging the diversity in agriculture, differentiated contribution rates based on total agricultural production ensure fairness.

Dr Ibrahim Okumu of Makerere School of Economics stresses the need to consider farmers' income levels when discussing social insurance, arguing that stable income is crucial for participation.

Despite these promising strategies, challenges remain. Ms Mwenya Kapasa of the International Labour Organization (ILO) warns that food security and income stability are prerequisites for farmers to consider social security schemes.

Without these, savings for the future may seem unattainable.

The need for social insurance in Uganda's agricultural sector is long overdue, according to industry voices like Mr Robert Ejiku, head of Uganda Tea Development Agency Ltd.

By adopting global strategies and ensuring a concerted effort from government and stakeholders, Uganda can empower its farmers, securing their futures while contributing to a more resilient economy.