Kusini Kwetu

By Tabia Mchakama

Dar es salaam – In a significant stride toward safeguarding Tanzania’s agricultural sector from the adverse effects of climate change, the Tanzania Insurance Regulatory Authority (TIRA) has joined hands with CRDB Bank PLC and the National Insurance Corporation (NIC) of Tanzania to spearhead the implementation of the Tanzania Agriculture Climate Adaptation Technology Deployment Programme (TACATDP).

The initiative, supported by the Green Climate Fund (GCF) under project FP179, seeks to strengthen the resilience of smallholder farmers through access to climate adaptation technologies and innovative financial instruments, most notably parametric (weather index) insurance.

The high-level meeting, hosted recently at TIRA’s Mtendeni offices by the Commissioner of Insurance General, Dr. Baghayo A. Saqware, brought together top representatives from the three institutions. Among the attendees was NIC Director General, Mr. Karim Mkeyenge, and key officials from CRDB Bank including Mr. Kenneth Davis Kasigila, Head of Policy Advisory and Climate Finance, and Ms. Linda Kamuzora, Head of Bank Assurance.

Discussions at the meeting centered on reviewing the progress of the tripartite Memorandum of Understanding (MoU) signed in May 2024. The parties acknowledged several milestones already achieved, while also addressing current challenges and laying out a roadmap for the program’s continued execution.

A pivotal component of the TACATDP is the development and rollout of a tailor-made parametric insurance product aimed at protecting smallholder farmers from climate-related risks such as droughts and floods. This innovative product uses weather data as a trigger for payouts, ensuring timely support for farmers affected by extreme weather events.

The collaboration emphasizes three main areas:

1. Policy Reform and Regulatory Coordination – to foster an enabling environment for climate-responsive insurance products;
2. Product Design and Customization – to ensure the insurance model aligns with the practical needs of Tanzania’s small-scale farmers;
3. Capacity Building – to enhance the skills of stakeholders in promoting, overseeing, and implementing the initiative.

CRDB Bank, as an accredited GCF entity, plays a crucial implementation role. The bank has not only facilitated funding but also technical assistance and training to build capacity for the delivery of the weather index insurance solution.

This partnership signals a transformative approach to agricultural financing and risk management in Tanzania. The meeting’s outcomes mark a critical step toward the official launch of the parametric insurance product—a landmark move expected to revolutionize agricultural insurance and bolster climate resilience for Tanzanian farmers.

With climate change increasingly threatening food security, the TACATDP initiative offers a timely and strategic intervention that aims to secure livelihoods and promote sustainable agriculture for generations to come.