Most Burundians rely on farming as their primary source of income. These small-scale farmers are vital to the country’s food security, yet their lives are precarious. A season of drought, heavy rains, or illness can wipe out their income. Faced with crises, many families are forced to sell livestock, tools or other assets, plunging them further into poverty. Through the PADFIR project, Cordaid has introduced a range of microinsurance schemes designed to protect rural families from financial shocks.
These include agricultural insurance, health and funeral coverages, and savings plans, all bundled into affordable packages for farming communities.
Building Protection from the Ground Up
The starting point is local community groups. Farmers pool small contributions, usually based on the size of their fields, and agree on a system of compensation. Each day, two members measure rainfall, creating a season-long record. If the rains fail or floods destroy crops, this data determines who is eligible for compensation.
‘Now with agricultural insurance, we are sure that in case of loss due to climate change, we get compensation,’ says Clémence Bucumi, one of the farmers who joined the programme.
Watch this video about how PADFIR’s microinsurance component protects rural families from financial shocks.
Health and Dignity When Families Need It Most
For many, medical expenses are the most significant burden. ‘Falling ill or seeing your child suffer is a weight you carry every day, especially when money is scarce,’ says Octavie Mushiranzigo, who benefits from the health microinsurance scheme. ‘With health insurance, we have more opportunities to access care.’
Funeral coverage has also proved crucial. Jeanine Niyogusengwa tells about how she lost her young son after a short illness. ‘Without any insurance, if we lose a family member, the burial will take away part of our savings,’ she says.
Amid her grief, she and her husband received 200,000 Burundian francs (around 57 euros) from the insurer. This amount can cover the cost of a dignified burial. The experience convinced them to sign up for both a funeral and agricultural insurance.
A Fragile but Hopeful Future
Microinsurance is still a new concept in Burundi, but for many low-income families, it offers a sense of security that was once unimaginable. Farmers now speak of hope, of being able to plan without fear that one crisis will ruin them.
The challenge, however, is sustainability. The schemes need continued technical and financial support to thrive. For now, they are funded through PADFIR – the Project to Support the Development of Innovative Rural Finance – backed by the Embassy of the Netherlands in Burundi. Its goal is to extend financial inclusion to rural communities, with a focus on women and youth.