Free Access | 2024-04-12

How can Uganda extend a contributory social insurance scheme to farmers?

Authors/Editors: Brian Sserunjogi (PhD) ,  Swaibu Mbowa (PhD)

Abstract:

This brief presents three (3) innovations that developing countries (i.e. Kenya, Costa Rica, Ghana, Cape Verde, Columbia and Philippines) have adopted to expand social insurance coverage to the highly informal agricultural sector. The first measure is to put in place collective insurance agreements between central social security funds and farmers’ cooperative societies or associations to reduce both the administrative challenges and transaction costs of insuring individual farmers. Second, the mandatory registration of all farmers according to contributory capacity to foster a progressive compliance system. Third, the creation of schemes for farmers with differentiated contribution rates based on the total value of agricultural production. Uganda can pick lessons from the three measures adopted by other countries to inform its regulatory frameworks and extend coverage to farmers.