New Agriculture Insurance Consortium launched in Tanzania
TANZANIA – The government of Tanzania in collaboration with the Association of Tanzania Insurers (ATI) has launched Agriculture Insurance Consortium to provide comprehensive insurance coverage for agricultural activities for its farmers.
According to Hussein Bashe, the country’s Minister of Agriculture, the consortium is expected to offer insurance solutions for the tobacco crop at the start of the coverage, with plans to expand the offer to other crops, fisheries, livestock, and forestry.
“The government is keen and committed to allocating 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,” said Bashe who officiated the launch.
Dr. Baghayo Saqware, Commissioner General of the Tanzania Insurance Regulatory Authority (TIRA), said the consortium will play a valuable role in 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 that year.
In April this year, fertilizer manufacturer Yara Tanzania, Jubilee Insurance, and Equity Bank Tanzania partnered to offer crop insurance coverage and help farmers to mitigate the impact of climate change.
TZS 30 billion scheme to boost vanilla farming in Tanzania
Meanwhile, Vanilla Village Limited is planning to invest over TZS 30 billion in vanilla farming in Dodoma, the capital city of Tanzania. The investment comes after success recorded in Zanzibar.
The project that will be implemented in three years aims at promoting crop business and job creation for the youth.
Vanilla Village Limited CEO Simon Mnkondya said the money will be utilized for the construction of greenhouses that provide optimal temperature and humidity favorable for vanilla farming.
The greenhouses are equipped with rain gun irrigation systems and will help to provide the crops with dew conditions which are essential for vanilla production.
“About 40 bore wells will be drilled to provide sufficient water to the farm as well as construct reliable roads to the farm. Also, a produce processing plant will be built as some of the funds will be used for procurement of seeds,” Mr. Mnkondya said.
In addition, he said about 130 Tanzanians are currently working on the project which will cover 125 hectares of land, 60 percent of them women from vulnerable situations and agriculture experts.
After three years of implementing the project, Mr. Mnkondya said the company is expecting to harvest 70 tonnes of the produce, therefore meeting the annual demands of clients in Dubai, Germany, and the US.
Currently, the crop is sold at US$500 per kilo which is equivalent to TZS 1.2 million. The crop is the second most expensive spice in the world after Saffron used mainly as a seasoning and coloring agent in food.
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