New insurance product created for Tanzanian farmers?
A new type of insurance could soon be introduced for agricultural workers in Tanzania.A new type of insurance could soon be introduced for agricultural workers in Tanzania.
The Bank of Tanzania and the Tanzania Insurance Regulatory Authority (TIRA) want to form a special unit that will oversee the creation of cover to protect farmers from various risks - including the weather, the Tanzania Daily News reports.
Individuals set to benefit from the scheme are mainly farmers that cultivate food crops such as maize, beans, barley and sunflower.
"Crop and agriculture insurance is fundamental to the national economy as adverse weather conditions like drought, excessive rains and storms that cause heavy losses to farmers pose a major threat to production," said TIRA Chief Executive Officer and Commissioner of Insurance Israel Kamuzora.
He also pointed out that bad weather conditions can affect farmers' incomes and investment.
In 2010, agriculture accounted for 28.15 percent of Tanzania's gross domestic product, data from the World Bank shows.
The National Network of Small Scale Farmers Groups also thinks an agriculture development bank focused on rural smallholder farmers should be created in the country, as many of these workers are ignored when national finances are allocated, the Daily News reported.