This document discusses scaling up weather index insurance and crop insurance programs for smallholder farmers in Tanzania. It provides background on agriculture's importance to Tanzania's economy and employment. Key issues facing smallholder farmers include reliance on traditional farming methods, lack of access to loans, poor market access, child labor, and malnutrition. The document then outlines what weather index insurance is, what risks it can cover, and its potential benefits like facilitating investment and strengthening producer groups. It details the proposed insurance program, including negotiating with insurance companies, training farmers, linking them to markets and financial institutions, and addressing challenges such as negative insurance attitudes, lack of coordination, and climate changes.

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Scaling up weather index
insurance/Crop insurance for small
holder farmers in Tanzania
The case of Tanga region
Introduction
• Agriculture is the backbone on the Tanzanian economy
• Accounting for half of the national income and slightly
more than half of merchandise exports.
• More than 80 percent of Tanzanians depend on agriculture
as a source of food and employment especially to the rural
dwellers (FAO, 2005; World Bank, 2001).
• 3.5 million households growing crops only, 2.3 milling
growing crops and keeping livestock and nearly 58
thousand households keeping livestock only (National
Bureau of Statistics, 2013).
• Those who deal with crops play a big role on supplying food
to the national (FAO, 2005).
Agriculture and women employment
• There are over 15 million smallholder farmers
in the country, more than half of who are
women (Nyomora et al., 2012).
• Agriculture comprises a greater part of
women‘s economic activity than men‘s: 81%
of women, compared to 73% of men, are
engaged in agricultural activity.
• In rural areas, that number rises to 98% for
women (Leavens and Anderson, 2011
Agriculture and youth employment…..
• The national unemployment level is estimated
at 11.7%. Every year, the education system
releases over 800,000 youth into the job
market of which at least 10 %( 80,000)
complete tertiary education. It is said that,
agriculture has the potentials for generating
more self employment opportunities to the
majority of youth compared to other sectors
of the economy.
Tanzania government and Agriculture
• Agricultural transformation is a pan-Africa
development agenda as per African Heads of states
2003 Maputo and 2014 Malabo declarations.
• Among the commitments in the 2014 Malabo
declaration, which is an affirmation of the Maputo
declaration is enhancement of investment finance in
agriculture both from public and private.
• The African Union Comprehensive Africa Agriculture
Development Programme (CAADP) resolved that
increased investment in agriculture is the best option
for economic development of African countries like
Tanzania.
Tanzania and Agriculture
• The 2008 World Bank Report and the G20 countries’
meeting both recommended that countries with
agricultural comparative and competitive advantage
like Tanzania should strategically invest in agriculture
for enhanced economic development.
• The G20 of September 2009 called on the World Bank
to work with interested Donors and Organizations to
develop a multilateral trust fund to scale-up
agricultural assistance to low-income countries.
• Targets to 2025 is to invest at least 10% of national
budget in agriculture sector and ensure agriculture
growth rate of more than 6%.

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Introduction continues
• The Fifth Phase Government of the United
Republic of Tanzania under the leadership of
His Excellency Dr. John Pombe Magufuli is fully
committed towards agricultural
transformation in the endeavor toward
industrialization and middle income economy
Where is the problem
• Most small holder farmers depend on hand
hone
• Difficulties of small holder farmers to access
loans on banks
• Lack of interest among graduates to invest in
the agriculture sector
• Poor markets of agricultural products
• 60% of the child labour is coming from the
agriculture sector in Tanzania ( Ngaiza 2016)
Where is the problem
• Children are the future of the nation.
• Most of these children are working in the
family farm and denied their basic need of
going to school.
• They end up being street children and become
burden to their mothers and the nation
Problem…..
• The poor status of nutrition in Tanzania is affecting
children and pregnant mothers.
• According to DHS, 2010, prevalence in stunting in
children of 0-59 months is 42%. 16% of 0-59 months of
children are underweight. 57% of 6-69 months children
are anemic and 40% of women are likely to be anemic.
• Cause brain development problem of children.
• Vitamins are highly needed for a healthier brain
development.
• The child brain development is very fast during
pregnancy and the first two years.
Problems cont…..
• Under nutrition during pregnancy and up to two years of
age causes permanent irreversible damage to child’s
development and lowers capacity to learn in school
• Iodine deficiency lowers IQ by 10-15 points.
• Nutrition interventions at school age are too late to correct
the brain damage at earlier life.
• These all have impact also in productivity. Iron deficiency in
adults decreases productivity up to 17 %( DHS, 2010).
• Stunting reduces adult income by 20% this is from the
global survey. Most of food we eat comes from the
agriculture.
• Serious investment in agriculture is needed
. intervention program over look food security is useless.
Problems continues
• Climate change and its adverse effects
• Inadequate weather index insurance for
farmers
• Disintegrated producer groups

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What is weather index insurance
A contract of indemnity by which, for a specified
premium, one party promises to compensate
another for the financial loss incurred by the
destruction of agricultural products from the
forces of nature, such as rain, hail, frost, or insect
infestation etc.
Crop insurance is purchased by agricultural
producers, including farmers, ranchers, and
others to protect themselves against either the
loss of their crops due to natural disasters, such as
hail, drought, and floods.
What is covered
Cereals, wheat, barley and maize
Coffee
Tree crop
Tobacco
All horticultural crops
Any other Crop of Commercial value
Flower crop, greenhouses and Irrigation
equipment.
Poultry equipment
What is not covered
Quality deterioration due to interruption of work or
process accidents.
Consequential loss due to delay in harvesting,
detention or confistication of produce or equipment.
Errors in pesticide application.
Theft produce while still in the farms.
Mysterious disappearances and unaccountable losses
Controllable pest and disease that can be managed
through recommended spray programs
Benefit of weather index insurance
• Facilitate huge investment in agriculture and
market assurance
• Involvement of all stakeholders in agriculture
sector
• Strengthening of producer groups
• Involvement of youth in agriculture
• Capacity building for women in the agriculture
sector
• Access of loans for farmers from TADB
What do we do in the program
• Negotiate with insurance companies to carry the
risk( BUMACO INSURANCE COMPANY)
• Train producer organization and other
stakeholders on agriprenuership, market access,
record keeping and financing agriculture
• Link producer organizations to financial
providers( Tanzania Agriculture Investment Bank)
• Negotiate with TMA on weather data and pricing
for the same
Program cont………
• Link producers to markets internal and
external markets
• Food processing programs
• Indigenous chicken production and
introduction of local brooders
• Planting trees in all operational areas to
mitigate climate change
• Construction of net house for producer groups

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Challenges faced so far
• Negative attitude of insurance in general among
communities in Tanzania
• Lack of coordination among producer organizations
• Climatic changes
• Gender issues
• Most banks located in urban areas
• Financial institution resistance on capacity building
fund
• Ignorance among small holder farmers on contract
farming
• Breaching of contract among small holder farmers
How to solve these problems
• We want input from the flow and experience
from other countries
THE END
• Thank you and God bless you all