Abou Kisige
28 December 2008
Kampala — MICRO-ENSURE has launched a crop insurance cover that will guard farmers against damage.
"Microfinance institutions have been considering lending to farmers as being risky for fear of drought which according to them makes it impossible for farmers to repay loans," Flora Kaheru, the country manager, said during the launch at the Speke Resort Munyonyo.
She said the cover, also known as weather-based insurance, is designed for regions like Karamoja and Teso whose crops face perennial destruction by either floods or drought.
Kaheru said crop insurance products can be designed using an index such as rainfall to determine if and when a payout is due. "It protects the farmers and the lenders which enables rural credit programmes to expand with reduced risks," she said.
Be the first to Write a Comment!
Copyright © 2008 New Vision. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
