By Charles Mkoka
Dar es Salaam-The National Insurance Corporation (NIC) has signed a strategic partnership agreement with Equity Bank to provide agricultural insurance and digital lending solutions, aiming to support farmers and businesses across Tanzania.
Speaking at a press conference at NIC's headquarters in Dar es Salaam, Acting Managing Director Abdi Mkeyenge highlighted the importance of this collaboration in accelerating national development, particularly in the agricultural and business sectors.
"This agreement will enable Equity Bank to strengthen its capital base, offer sustainable loans to its clients, and expand support to the agricultural sector more efficiently and comprehensively," said Mkeyenge.
The partnership will allow farmers to access loans and other services from Equity Bank, backed by NIC to ensure financial security and drive progress for Tanzanians.
"NIC is a legacy institution, celebrating its 60th anniversary last year. As a government-owned entity, we have the capacity to channel significant resources towards improving and securing the livelihoods of our citizens," Mkeyenge added.
NIC has been actively investing funds from its insurance operations in government bonds, stock markets, and other commercial ventures to strengthen the national economy. Mkeyenge emphasized that circulating funds within these sectors benefits borrowers, investors, and the nation at large, fostering economic growth and development.
Through its fixed deposit investments, NIC consistently identifies new opportunities to enhance the financial sector, ensuring the sustainability of its contributions to economic stability.
Equity Bank's Managing Director, Isabella Maganga, underscored the significance of this partnership in bolstering their agricultural and business services. "By the end of 2024, 67% of our clients had accessed loans digitally, with over TZS 300 billion disbursed. This collaboration will further ensure insurance coverage for our customers," Maganga said.
Equity Bank has supported over 20,000 businesses, ranging from small-scale entrepreneurs to larger enterprises, by providing digital loans to advance their development activities. Maganga noted that the bank prioritizes enabling its clients while offering protection against risks such as fire, theft, and unforeseen events.
"Our goal is to achieve more than we ever have in the past. We believe this partnership will extend our reach to even more businesses across the country," she added.
Highlighting the critical role of agriculture as the backbone of Tanzania's economy, Maganga noted that insurance acts as a vital safety net against risks affecting all economic sectors. "When disasters occur, insurance helps manage the initial stages of recovery or even unforeseen challenges. Expanding insurance usage and raising awareness are key priorities for us," she stated.
The partnership is designed to be long-term and dynamic. "Our mission to educate, include, and improve services is continuous. This collaboration is not just a short-term endeavor but a lasting commitment to bettering lives," Maganga concluded.
With this agreement, NIC and Equity Bank aim to create a robust framework for supporting farmers and businesses, ensuring resilience and growth across Tanzania's key economic sectors.