Global Agr-insurance Loan
Explain your idea in details:
Recent theoretical and empirical studies acknowledges the pivotal role of agriculture to economic growth. Despite the importance of this sector, little efforts are in place to foster the sustainability of this and calling for increased access to crop credit and insurance.Good Farming Practices arent always enough to help secure small holder farmers welfare in the short run as well as promote their income revenue in the long run. My objective is to help small holder farmers to understand that the risks they are facing such as weather changes, price fluctuations for their yields and lack of capital for investment can be lowered if and only if they could adopt crop insurance. In addition to this, crop insurance can be used as a collateral and help farmers secure credits easily since different financial institutions will see that they have quantified the risk aspect in their farming venture. It is my dream to be the first Tanzanian who will have a micro finance bank that assists small holder farmers especially women in the rural economy to easily access credit as they incorporate insurance for their crops so as they can have a safety net and break the vicious cycle of poverty. The primary innovation of this solution is to adapt financial services to specifically cater to the needs of these farmers .Through partnership and financing, we will provide access to create income and also improve agricultural efficiency and productivity. To further protect farmers and allow for business growth, the insurance programme provides this.
Expected impact of your idea on sustainable development
By providing investment capital and a risk mitigating tool all at once will have a spillover effect in the achieving of Sustainable Developmental Goals (SDGs) and these include: End poverty in all its forms everywhere, End hunger, achieve food security and improved nutrition and promote sustainable agriculture, Ensure healthy lives and promote well-being for all at all ages, Achieve gender equality and empower all women and girls, Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all, Take urgent action to combat climate change and its impacts, and Strengthen the means of implementation and revitalize the global partnership for sustainable development.This business will have the following impacts: a stable market for consumers and traders, stability in income for farmers, more involvement of youth in the agricultural sector hence job creation, More intensive investments in rural development and credit facilities: Investments are often effected with the help of loans and play a major role in productivity, avoidance of risk as a normal attitude of a farmers will have negative impact in the level of that production. Now without insurance farmers will be reluctant to borrow. Public investments such as power and water supplies, flood control, public health are major component of agricultural output and its regular production. This business will be used as means for re-allocation of economic resources and thus ensuring a more even National Development that in turn will fast track poverty reduction. That is most of these indemnities paid to farmers result from financial injection to the national economic system. The business will measure its success by looking at factors such as: repayment rate, number of new individuals taking crop insurance, total revenues of the company per quarter, how many farmers would have their livelihoods improved.
Plans for implementation and sustainability
The company will generate income through application fees charged by the company to small holder farmers, premiums collected and interest rates charged.The only way the business can be sustainable is if farmers attitude can change by being aware of the socio-economic benefits of the agr-insurance loan service. As well as premiums and interest rates charged should be low so as to give an enabling environment for farmers to purchase the product.Government can give the company SMART subsidizes so as to help the company with its operational and administration costs. The company will depend highly on funds raised and grants from donors through submission of different business proposals. I welcome different investors who would like to be part of this solution in my community.
I am a Tanzanian female aged 25. I had finished undertaking a Masters degree in Mathematical Sciences at the African Institute for Mathematical Sciences-Tanzania where by I was among a select few female students to be awarded the AIMS-NEI scholarship and now currently working as a Support Technical Staff at a non-profit organization known as Kilimo Trust in three projects (CARI, SIKIA and CHIPS) which aim at improving the livelihoods of small scale farmers. Previously, I successfully accomplished a Bachelor of Science degree in Actuarial science at the University of Dar es Salaam which I graduated with honours. A career that allows me to solve problems and use diverse skills in real life situations and one that helps me expand my interaction with people is what am looking for. In addition to this, I love working for developmental changes and towards developing Africa as whole. By being an intern and employee at Kilimo Trust, it has helped me become an independent thinker who sees the necessity of using market-pull interventions to empower different value chain actors in staple foods subsector to work together to solve their problems and become competitive and reliable suppliers of differentiated products to specific national, regional and global markets. In addition, for development to be sustainable we need to efficiently manage our natural resources and environment as well as mitigate the risks associated with them. I strongly believe by improving the Agricultural sector globally and mitigating the risks facing the sector there will be a huge boost in enhancing and ensuring sustainable development.