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UNDP Consultancy to conduct a study on the impacts of climatic risks on the business – United Nations Development Programme
Consultancy Title: National IC – to conduct a study on the impacts of climatic risks on the business
Organisation: United Nations Development Programme (UNDP)
Duty Station: Kampala, Uganda
About the Company:
The United Nations Development Programme (UNDP) is the United Nations’ global development network. UNDP works in about 170 countries and territories, helping to achieve the eradication of poverty, and the reduction of inequalities and exclusion. We help countries to develop policies, leadership skills, partnering abilities, institutional capabilities and build resilience to sustain development results.
Job Summary: This specific tender is managed via the new supplier portal system of UNDP Quantum. If you are interested in submitting a bid for this tender, you must subscribe following the instructions in the user guide. If you have not registered a profile with this system, you can do so by following the link for Supplier Registration.
If you already have a supplier profile, please login to the Supplier Portal, then search for the negotiation using the reference number UNDP-UGA-00340, following the instructions in the user guide.
Introduction
Country: Uganda – Kampala
Description of the Assignment: National Individual Consultant to conduct a study on the impacts of climatic risks on the business of the service providers and clients/gender – use data from FSPs and Digital Platforms – use data from FSPs and
Digital Platforms
Period of assignment/services 45 Working days
Agriculture is a crucial sector in Uganda, employing about 70% of the population and contributing significantly to the country’s GDP. Adverse climatic conditions and catastrophic risks such as extended drought, unpredictable weather changes, floods, landslides and extreme temperatures have been found to have a significant impact on agriculture in various studies. Evidence also shows that these hazards have had major consequences for the Country whose economy is centered on agriculture. As a result, affected farmers have developed traditional risk management methods such as timely planting, digging dams, irrigation and modern farming practices, among others.
However, these methods have proven ineffective, particularly in poor societies, because they require large investments and cannot manage catastrophic risks. Some farmers borrow from financial institutions and SACCOs to cover their losses. However, financial institutions are sometimes hesitant to lend to farmers in disaster-prone areas due to their proclivity for defaulting on loans when faced with these hazards. Most governments have found it necessary to provide relief to disaster-stricken communities though this has come at a high cost to the government. As a response, many governments, including Uganda, have adopted Agriculture Insurance as a means of reducing these risks through public-private partnerships. Crops, cattle, poultry, forestry, and aquaculture are all covered by agriculture insurance.
Moreover, agriculture contributes to over 31% of Uganda’s exports and about 24% of Uganda’s Gross Domestic Product (GDP). According to UBOS statistics, agriculture employed about 70% of Uganda’s population in FY 2020/21. During Covid 19 lockdown, Agriculture proved to be Uganda’s only sure source of livelihood and a sector to depend on. However, it was faced with several risks which stemmed from production, marketing, financial and catastrophic risks. These included bad weather, natural disasters like floods and droughts, pests and diseases, and insect damage notably the invasion of the deadly locusts in 2020. Agriculture productivity has been affected by unpredictably changing weather patterns and the intensity of natural disasters like floods, landslides, windstorms, hailstorms, and drought in some areas, as well as pest and disease invasion. Therefore, Risk management in Agriculture is very important given that agriculture is key to Uganda’s economy yet inherently risky. To cushion from the effects of such risks, farmers have employed various measures from mitigation, coping, and risk transfer. In risk transfer, farmers have exploited an option of transferring the risks they are exposed to by incurring a cost (paying premiums) to the insurers commonly termed as Agriculture Insurance.
By definition, Agriculture Insurance is the insurance of crops, livestock, poultry, forestry and Aquaculture. It has been necessary based on unpredictable weather patterns and severity of natural disasters such as floods, landslides, windstorms, hailstorms, and drought in some regions and Invasion of pests and diseases. The Government of Uganda has had several interventions among which included the introduction of the Uganda Agriculture Insurance Scheme (UAIS) where it contributes insurance subsidy of about US 5 billion annually to support both small scale and large-scale farmers in high-risk areas. The UAIS is managed by the Agriculture Insurance Consortium which is composed of currently 13 insurers. These provide insurance products ranging from Multi-peril –Crops and Livestock Insurance, Poultry Insurance, Weather-Based Index Insurance and Aquaculture Insurance.
To understand the spread, impact and challenges of the scheme among farmers, the Insurance Regulatory Authority conducted a situational analysis on the potential for Agriculture Insurance in Uganda. This was intended to assist stakeholders in policy formulation. There are also challenges of awareness and education: many farmers in Uganda are still unaware of agricultural insurance especially in regions such as the West Nile and parts of Western Uganda or do not fully understand how it works, this lack of knowledge hampers the widespread adoption of insurance products, affordability, infrastructure and access. The rural nature of farming communities makes it challenging to reach farmers with insurance products. Limited access to financial services and technology also poses a significant hurdle, data and actuarial capacity: Accurate data on weather patterns, crop yields, and other relevant factors are crucial for designing effective insurance products. Uganda faces challenges in data collection and actuarial analysis.
To bring up to scale and ensure sustainability of the current efforts of the market, UNDP is supporting the development of well-functioning inclusive agricultural insurance markets through the Financial Resilience in Agriculture Initiative (FRA).
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How to Apply:
All candidates who wish to submit their proposals should apply online at the link below
Deadline: 10th October 2024
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