By Correspondent Jordan Mbwambo, Dodoma
The Tanzanian government is finalising new Agricultural Insurance Regulations aimed at expanding insurance coverage for farmers and strengthening the country’s resilience against climate-related and other production risks.
The move is expected to create a more structured and attractive framework for agricultural insurance providers while helping farmers protect crops, livestock, forests and fisheries from increasingly frequent natural and economic shocks.
Speaking in Parliament in Dodoma, Deputy Minister for Finance Laurent Luswetula (pictured above) said the government was in the final stages of developing the regulations as part of broader reforms designed to deepen agricultural risk financing and increase access to insurance services.
The remarks came in response to a question from Ilemela Member of Parliament Kafiti William Kafiti, who sought clarification on when the regulations would be completed to improve insurance protection for farmers and agricultural production.
According to Luswetula, the Ministry of Finance is undertaking research and policy improvements across the agricultural insurance sector to ensure the framework is both inclusive and capable of attracting investment from domestic and international stakeholders.
“The government is conducting research on insurance across the entire agricultural value chain, including crops, livestock, forestry and fisheries, with the objective of establishing regulations that attract investment in agricultural insurance and create an enabling environment for farmers to access insurance services more easily and efficiently,” he told Parliament.
Reducing risk in a strategic sector
Agriculture remains the backbone of Tanzania’s economy, employing the majority of the workforce and contributing significantly to national income and export earnings. However, the sector remains highly vulnerable to droughts, floods, pests, diseases and other climate-related shocks that regularly undermine productivity and farmer incomes.
Despite these risks, insurance penetration within the agricultural sector remains relatively low, leaving many farmers exposed to substantial financial losses whenever disasters occur.
Industry experts have long argued that improving agricultural insurance is critical to strengthening food security, increasing investment in commercial farming and supporting access to credit, as lenders are often reluctant to finance uninsured agricultural activities.
The proposed regulations are expected to address some of these challenges by creating clearer operational guidelines for insurers while encouraging broader participation by private-sector players.
Unlocking investment opportunities
The government’s reforms are also intended to stimulate investment in agricultural insurance products, a market that remains largely underdeveloped across much of East Africa.
By establishing a predictable regulatory framework, policymakers hope to encourage insurance companies, financial institutions and development partners to introduce innovative products tailored to the needs of farmers, livestock keepers, forest managers and fishing communities.
Luswetula said the government intends to ensure the regulations are farmer-friendly while creating incentives for greater private-sector participation in delivering agricultural insurance services.
The initiative aligns with Tanzania’s wider agenda of modernising agriculture, improving climate resilience and increasing productivity across key value chains.
As climate risks continue to intensify, stakeholders view agricultural insurance as an increasingly important tool for safeguarding rural livelihoods, protecting investments and supporting sustainable growth in one of the country’s most important economic sectors. The government has reaffirmed its commitment to working closely with insurance industry stakeholders to ensure the new framework is sustainable, commercially viable and capable of delivering meaningful benefits to farmers across the country.
