BUDGET REACTIONS: The Money Economy Implies Need For Risk Management

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NATIONAL BUDGET READING 2026

Sande Protazio: Acting CEO, IRA

This is a growth-oriented budget, focused on accelerating monetisation of the economy through commercial agriculture, industrialisation, infrastructure development, and expansion of markets. These are sectors that create demand for risk management and insurance solutions.

From an insurance industry perspective, the allocations are largely aligned with our long-term objectives of increasing financial inclusion, protecting productive investments, and supporting sustainable economic growth. Increased funding towards agriculture, infrastructure, oil and gas, manufacturing, SMEs and digital innovation will expand the country’s insurable asset base and create new opportunities for insurance uptake.

The emphasis on wealth creation programmes, such as the Parish Development Model, Emyooga, agricultural financing schemes, and SME support is particularly important because these programmes bring more individuals and businesses into the formal economy.

As a sector, however, we continue to advocate for stronger integration of insurance into national development programmes, particularly in agriculture and SME financing, to ensure that economic gains are protected against unforeseen risks.

The increased investment in agriculture creates strong prospects for agricultural insurance. A successful drive towards commercial agriculture will require robust risk management against climate and production risks, which agriculture insurance readily offers.

Major investments in infrastructure, energy, oil and gas, and manufacturing ought to generate demand for engineering, construction, liability, property and business interruption insurance. These sectors represent some of the largest growth opportunities for insurers over the coming years.

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