MICROINSURANCE MARKET ASSESSMENT AND LINKAGES WITH AGRICULTURAL FINANCE

SUSTAINABLE LIVELIHOODS AND INCOME DIVERSIFICATION THROUGH AGROFORESTRY PROJECT (SUSTAIN AF)

1. Background 

1.1 Presentation of Inkunga Finance Plc

Inkunga Finance Plc is a Rwandan microfinance institution providing savings and credit services mainly in rural areas. Founded in 1995 as a Savings and Credit cooperative, Inkunga Finance Plc transformed into a microfinance company in 2016 and obtained a deposit taking license from the Central Bank of Rwanda in 2017. Inkunga has approx. 42,000 active clients. 

The MFI’s main operations are concentrated in the Western part of rural Rwanda with 7 branches in Rubengera, Bwishyura, Rusizi, Rutsiro, Bwishyura, Nyamasheke and Mahoko. Recently, the MFI opened a branch in Kigali at Nyabugogo and % sub-branches.

Through collaboration with ADA since 2022, Inkunga Finance Plc has pioneered forestry and agroforestry loans in Rwanda with 3 specifically designed and customised loan products to fit customer needs of smallholder farmers, small scale forest owners and forestry value chain SMEs to foster the adoption of agroforestry, sustainable forest management and business growth. 

1.2. About ADA

ADA (Appui au développement autonome) is a Luxembourgish, non-governmental organisation that has been increasing the autonomy of vulnerable people in Africa, Latin America and Asia with inclusive finance since 1994, thereby contributing to achieving the sustainable development goals (SDGs).

ADA leverages its resources and expertise to innovate, support local partners, implement technical support programmes, give investment advice and manage knowledge to positively and sustainably impact targeted populations.

1.3. Context

The SUSTAIN-AF project is a collaboration between Inkunga Finance Plc and ADA, with technical support from CIFOR‑ICRAF aiming to provide tailored financial and capacity building services to smallholder producers within the agroforestry value chain.

In 2022, Inkunga Finance Plc identified a critical financing gap in the forestry and agroforestry sectors, limiting the contribution of smallholder farmers to landscape restoration, ecosystem sustainability and rural livelihoods. In response the institution developed a set of dedicated financial products, including the Ongerigiti loan product designed to enable smallholders to invest in tree planting and transition towards agroforestry systems.

Launched and piloted in 2024, the Ongerigiti product combines financial services with training and technical support. This support is delivered through a structured Training of Trainers (ToT) model, developed with CIFOR‑ICRAF. Lead farmers act as key intermediaries between Inkunga Finance and smallholder clients, supporting agroforestry implementation and field‑level monitoring.

While climate smart agriculture generally offers strong potential to enhance resilience, diversify incomes and improve environmental outcomes, smallholder farmers remain exposed to climate, environmental and economic risks, such as droughts, floods and price volatility. These risks can affect both livelihoods and loan repayment capacity.

In this context, riskmitigation mechanisms such as microinsurance could complement innovative agr-finance and strengthen both client resilience and portfolio quality. However, there is currently limited visibility on:

• the availability and relevance of existing microinsurance products,
• their accessibility and adoption by smallholder farmers,
• and their potential integration with agroforestry finance.

To address this, Inkunga Finance intends to engage a consultant to assess the existing microinsurance landscape, identify opportunities to link relevant insurance solutions to innovative agri-finance, and provide practical recommendations, including options to adapt existing products or potentially develop a tailored insurance offer, to be integrated into the Ongerigiti product.

2. Objectives 

The objective of this assignment is to assess the microinsurance landscape and identify opportunities to integrate relevant insurance solutions into agricultural finance generally with a special focus on agroforestry finance offer.

The specific objectives are to

• Analyse the existing microinsurance market, including available products and key actors
• Assess the relevance of existing insurance products for agroforestry and smallholder farmers
• Identify key market constraints and barriers to uptake
• Explore linkages between microinsurance and agroforestry finance, including potential product adaptations
• Provide practical recommendations for integrating insurance solutions into financial products

3. Scope of work 

The consultant will carry out the following tasks: 

• Market mapping: identify key actors (insurance companies, microinsurance providers, insurtechs, donors/program supporting insurance), map existing products (crop insurance, weather index insurance, asset or credit-linked insurance, etc.), assess distribution channels (MFIs, cooperatives, mobile platforms, etc.)
• Products analysis: Assess coverage, pricing and affordability, claims processes and timelines, accessibility and distribution. Evaluate the fit with agroforestry investments considering long term horizons, climate related risks, mixed production systems.
• Demand and client perspective: Assess farmers awareness and understanding of insurance, perceived risks and priority needs, willingness to pay. Identify barriers to adoption (cost, trust, complexity, etc.)
• Analyse constraints and gaps: identify the key constraints (data availability, product design, low penetration of insurance services etc.). Highlight faps between existing products and actual needs of agri-farmers.
• Assess potential linkages with Agroforestry finance: Assess opportunities to link insurance to agri- loan products, bundle insurance with credit, use insurance as a risk mitigation tool. Explore options such as weather index products, portfolio insurance, blended finance mechanisms.
• Provide recommandations on suitable insurance solutions for agr-clients, possible partnerships, product design adjustments, implementation strategy for pilot testing, etc.

4. Methodology

The consultant is expected to adopt a mixed methods approach including:

• Desk review of existing studies and data
• Key informant interviews (insurers, MFIs, regulators, NGOs)
• Field consultations (farmers, lead farmers, etc.)
• Focus group discussions where relevant
• Analysis of existing financial and insurance products

5. Deliverables

The assignment will result in:

• Inception report (methodology, workplan). 
• Draft report (market assessment, key findings, preliminary recommendations)
• Final report including
  • Microinsurance landscape analysis
  • Gap and constraint analysis
  • Opportunities for integration with agroforestry finance
  • Operational recommendations
  • Priority actions for pilot implementation
• Presentation of the findings (PPT)

6. Duration

Estimated duration: 6 to 8 weeks

Indicative breakdown

• Inception phase: 1 week
• Data collection: 2 to 3 weeks
• Analysis and drafting: 2 weeks
• Finalisation and presentation: 1 week

7. Submission of the proposal 

The response to this call must be sent to Inkunga Finance Plc and ADA by email no later than 15/06/2026 at 23:59. 

The submission must include the following attachments:

• A technical proposal with a full assignment execution approach, including CV(s) of the proposed consultant(s). In the case of a team, clearly specify the division of roles and respective incumbents; references to previous work conducted on similar topics; and any other relevant supporting information deemed useful.
• A financial proposal.

The bid should be sent by email to the following : procurement@inkungafinance.com

7.1 Selection of the consultant

Technical proposals will be evaluated against the following criteria:

• Understanding of the TOR and the proposed methodology;
• Qualification and experience of the consultant or team;
• References.

Done at Karongi 29/05/2026

MUHAWENIMANA Abed Cherif

Managing Director

INKUNGA FINANCE PLC