Themistocles Munyangeyo lost 100 tonnes of fish whose value he estimated at Rwf300 million, but he did not get compensation for the loss as fish farming was not covered by the National Agriculture Insurance Scheme.
The incident occurred on July 1, 2021. The fish died from depletion of dissolved oxygen caused by water turnover in his and other farmers' cages at Muhazi Lake, Rwamagana District, Eastern Province, according to the Ministry of Agriculture and Animal Resources.
"I lost about 100 tonnes of fish worth more than Rwf300 million but I somehow started fish farming from scratch because I did not have insurance cover. If there were insurance, I would be compensated," he said.
Circumstances such as the disaster that hit Munyangeyo help to underscore the government's move to include fish farming in the agriculture insurance scheme - with a view to cushion investors against losses.
Munyangeyo, who is the owner of a firm called Fine Fish, said that insurance is critical in fish farming as the sector has risks, citing a situation where heavy rains always results in fish dying.
But, for the insurance to benefit farmers adequately, it must be effectively implemented, he pointed out, adding that he has hope that the fish farming cover is going to be operational since the government has included it in the budget.
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Munyangeyo said he is "very passionate about fish farming and saw an opportunity in it. He carries out this business in more than 200 cages at two lakes currently, producing about 90 tonnes of fish per month.
The lakes are Kivu in Rubavu District, Western Province where he has 110 cages; and Lake Muhazi in Rwamagana District, Eastern Province, where has 95 cages.
The Minister of Agriculture and Animal Resources (MINAGRI), Ildephonse Musafiri, told The New Times that fish insurance was included in the list of crop and livestock insurance products.
MINAGRI, he said, initiated training for technicians across the insurance industry, and professional aquaculture officers who will assess losses in case of damage, serving as the basis of claiming payouts, adding that efforts to mobilise fish farmers are currently underway.
Products covered under the new move include accidental death, diseases and illnesses, death attributed to epidemics and stock disposal on an aquatic veterinarian's advice.
"Aquaculture farmers can now contact insurance companies--Radiant Yacu, BK Insurance, Sonarwa Insurance, and Old Mutual--in partnership with the Ministry of Agriculture and Animal Resources to obtain insurance and receive a 40 per cent premium subsidy from the Government of Rwanda," Musafiri said.
Why does the new move matter, and what impact could it have?
The inclusion of fish on the list of products covered by the insurance, Musafiri said, was mainly informed by the request of farmers, observing that it has been noted that fish farmers, such as Fine Fish Ltd located at Muhazi Lake, faced significant losses due to climate change, citing the death of fish caused by lack of oxygen in the lake due to water turnover.
Similarly, in Lake Kivu, many farmers are struggling with the proliferation of phytoplankton and blue-green algae, which consume large amounts of oxygen at night, leading to fish losses, he indicated, adding that those risks are beyond the farmers' control.
Fish farming is a key sector experiencing significant growth in investments, with farmers (or firms) investing over $10 million (approx. Rwf13 billion), such as Fine Fish Ltd, Kivu Tilapia Farm Ltd, LakeSide Farm Ltd, Frefish Co Ltd, Hauge Aqua Rwanda Ltd and Kivu Choice Farm Ltd, according to MINAGRI.
Consequently, it indicated, there is a need for access to finance to sustain these investments.
"This action will help farmers to access financial services in order to expand their activities, and more investments will be created as the sector will be secured," Musafiri said.
Additionally, he said, the government aims to achieve local self-sufficiency in fish production to reduce imports and, to increase fish products export in the region.
Insurance premiums subsidy
Musafiri pointed out that in line with scheme sustainability, the Government of Rwanda has secured more than $10 million (approx. Rwf13 billion) for premium subsidies until 2027.
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"Therefore, the GoR encourages more farmers to join the scheme and invites more partners to contribute, aiming to reach more farmers," he said, adding that at this stage, the scheme will target commercial farmers using cages and tanks to grow Tilapia species.
In 2023/24, the government allocated more than Rwf3.3 billion to agriculture insurance subsidy, and it increased that allocation to Rwf4.8 billion for 2024/25, representing a 41.8 per cent rise, according to data from MINAGRI.
Currently, the National Agriculture Insurance Scheme covers crops namely rice, maize, Irish potatoes, chili, cassava, soya, beans, and French beans; and livestock - cattle, piggery, poultry, and aquaculture (which is the latest).
More than Rwf4.4 billion has been paid to farmers as compensation for loss to the insured crops and livestock (including slightly over Rwf2 billion to livestock keepers and more than Rwf2.3 billion to crop farmers).
Rwanda's fish production was estimated at more than 46,000 tonnes in the 2022/2023 fiscal year, while the country's target is to reach 112,000 tonnes in annual production by June 30, 2024.
