Free Access | 2024-04-12

Is A Contributory Social Insurance Scheme for Uganda’s Farmers Feasible?

Authors/Editors: Brian Sserunjogi (PhD) ,  Swaibu Mbowa (PhD) ,  Florence Nakazi ,  Hildah Namuleme

Abstract:

This study examines the feasibility of establishing a contributory social insurance scheme for farmers in Uganda. To achieve this, we used different analytical approaches, including policy document review, stakeholder consultations, and analysis of the 2019/20 Uganda National Panel Survey. The study finds that while Uganda has put in place a robust legal and regulatory framework for social security, various gaps exist in the informal sector. Particularly, the regulations to operationalise coverage of self -employed workers within the recently amended NSSF Act have not been passed. Second, most pension sector laws are stated in general terms, enacted to encompass all sectors of the economy without due consideration to the sector specific peculiarities which are key in the case of the agriculture sector. Considering farmers’ income capacity to save, the findings reveal that while aggregate agricultural sector income is attractive, annual household earning remains small, averaging UGX 782,914 per year. In addition, agricultural earnings by season remain irregular and fluctuate from one season to another. This has implications on the design for farmers’ social insurance scheme. Lastly, whatever social insurance model that Uganda adopts, the country must leverage partnerships, working closely with farmers’ cooperatives and agricultural commodity buyers; promote farmers’ educational and awareness campaign about the benefits of social insurance and provide incentives to farmers to drive enrolment, registration but also affordability of contributions.