Farmers to benefit from new crop insurance scheme

PIUS RUGONZIBWA in Mwanza

ILEMELA District Commissioner, Dr Leonard Masale opens a package of maize seeds to launch a new insurance scheme for crops dubbed 'Airtel Money Linda Mbegu Yako' in Mwanza yesterday. The new insurance product is supported by Airtel, ACRE, SeedCo and UAP insurance company. Others in the photo are a representative of UAP, Raymond Kamonga (right), and SeedCo Managing Director, Ckive Mughadza. (Photo, courtesy of Airtel)

FARMERS in Mwanza, Kagera Shinyanga and Mara regions will start benefiting from a new insurance scheme which will refund them the cost of buying maize seeds if they fail to grow due to unfavourable weather.

Dubbed as ‘Linda Mbegu’, the new product is a crop insurance which will ensure that in the event of rainfall failures the farmer will get the equivalent of the number of bags of seeds they purchased replaced enabling them to replant in the next season.

The free crop insurance service jointly launched here on Monday by Airtel Company, Acre Africa, Seed Co and UAP Insurance Tanzania will require a farmer to enter the special card number found inside the seed bag to ensure their seeds are insured for 21 days upon activation.

The Managing Director of ACRE Africa Ms Rahab Kariuki said it was good seeing farmers in Tanzania getting access to the new insurance product which is the first of its kind in the country.

“Protecting farmers from climate risks was our company’s key mandate and we therefore look forward to providing more solutions in covering farmers from the farming based risks,” she said.

On his side, Seed Co Managing Director Mr Clive Mughadza said for small holder farmers in Tanzania one bad season sets off a string of negative consequences be it inadequate or poorly distributed rainfall leading to fall in crop production impacting the farmers’ willingness to invest in improved inputs.

Airtel Tanzania Lake Zone Business Manager Ezekiel Nungwi said his company was partnering with the three companies to provide the target farmers with mobile money services that will be used to refund them as per set arrangements.

“We are confident the Linda Mbegu service will support thousands of farmers to stimulate agricultural activities and ultimately grow their economies and that of the country at large,” he said.

Earlier, officiating at the launch of the product, the Mwanza Regional Commissioner Mr John Mongela said it was encouraging to see more stakeholders chipping in ensuring prosperity of the farmers across the region.

He said farmers have a very significant contribution to the society and economy but due to a number of risks like natural calamities they sometimes suffer miserably. “So it is expected this new insurance product will bring hope to normal smallholder farmers,” he said in a speech read on his behalf by the Ilemela District Commissioner Dr Leonard Masale. The agriculture sector in Tanzania is the biggest employer depended by nearly 80 percent of the population.

Nevertheless, the majority of the farmers rarely invest in quality seeds because of different reasons such as awareness on the prospects of their yields.

The Tanzania Bureau of Statistics (NBS) reported recently that from January to June this year the sector contributed to the economy about 11.7tril/- compared to 10.9tri/- in the corresponding quarter last year with crop production alone recording a 3.4 percent growth