Agriculture is among important sectors of the Tanzanian economy. It provides three quarters of merchandise exports, contributes about 95% of the country’s food demand, 26.8% of GDP, and 30.9% of foreign currency and provides employment to over 75% of Tanzanians. Government budget allocation to agriculture has been increasing annually which is at 7% of the national budget which is expected to be 10% by year 2015.
There are a number of risks associated with this sector which have hampered the farmers progress.
Poor rural people in Tanzania are vulnerable to a range of risks and constraints that impede their socio-economic development. Weather risk, in particular, is pervasive in agriculture. Weather shocks can trap farmers and households in poverty, but the risk of shocks also limits the willingness of farmers to invest in measures that might increase their productivity and improve their economic situation.
Agricultural insurance, including livestock, fisheries and forestry, is especially geared to covering losses from adverse weather and similar events beyond the control of farmers. It is one of the most quoted tools for managing risks associated with farming.
Pan oceanic can help our farmers manage their risks by arranging suitable coverage to reduce the financial burden of farmers.