On 1st July 2023, Tanzania saw the launching of the Agriculture Insurance Consortium (KONSOTIA YA BIMA YA KILIMO) to provide comprehensive insurance coverage for agricultural activities.
The consortium is a collaboration between the government and the Association of Tanzania Insurers (ATI) to offer insurance solutions for the tobacco crop, with plans to expand coverage to other crops, livestock, fisheries, and forestry.
Hon. Hussein Bashe (MP), the Minister of Agriculture for the United Republic of Tanzania, officiated the launch of the consortium, underscoring the crucial role of innovative insurance products in safeguarding millions of Tanzanians engaged in agricultural activities against diverse challenges such as drought, floods, and agricultural diseases.
Hon. Bashe emphasized the government’s commitment to allocate funds through the Ministry of Agriculture to incentivize the adoption of agricultural insurance, reinforcing the importance of protecting farmers and mitigating risks in the sector.
For his part, Dr Baghayo Saqware, Commissioner General of the Tanzania Insurance Regulatory Authority (TIRA), stressed the Agriculture Insurance Consortium’s role as a valuable platform for advising the government on establishing the National Agricultural Insurance Scheme.
Tanzania’s agricultural insurance sales reached TZS 1.3 billion in 2021, which corresponds to 0.17% of the country’s total insurance sales in the country in that year.
The low penetration insurance in agriculture is attributed to the farmers’ inability to afford insurance premiums.
This is the second insurance consortium to be established in Tanzania, after the oil and gas insurance consortium established by 22 insurance companies.