MICROCAPITAL BRIEF: Aga Khan Agency for Microfinance to Offer Health, Savings, Harvest Insurance to Rural Poor in Tanzania through First Microinsurance Agency Tanzania

The Aga Khan Agency for Microfinance (AKAM), a nonprofit international development agency based in Switzerland, will expand its insurance products for poor people in Tanzania to cover loans and agriculture in addition to health. The expanded services will be offered as part of a five-year project that will be headed by the First Microinsurance Agency Tanzania (FMiA-T), an agency of AKAM. While FMiA-T began offering micro health insurance to the poor at the end of 2009, loan insurance and insurance to cover harvest stored in warehouses will now join its product line. According to Wilson Mzava, Project Manager for FMiA-T, 3 percent of Tanzanians are currently able to access microinsurance, but FMiA-T studies indicate a much higher demand. FMiA-T will begin this project by reaching out to members of cooperatives, village savings and loan associations and other microfinance institutions in an effort to provide the rural poor with a way to protect themselves from unexpected and adverse events. AKDN, AKAM and FMiA-T do not report financial information to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse [1].

About Aga Khan Agency for Microfinance (AKAM): AKAM is a non-profit international development agency that is part of the Aga Khan Development Network (AKDN), a group of development agencies with mandates that include the environment, health, education, architecture, culture, microfinance, rural development, disaster reduction, the promotion of private sector enterprise and the revitalization of historic cities. AKAM was established in 2005 under Swiss law and is headquartered in Geneva. According to AKDN’s website, AKAM’s objectives include reducing poverty and the vulnerability of poor populations as well as reducing economic and social exclusion. The agency is governed by an independent board of directors and His Highness the Aga Khan (the 49^th Imam of the Ismaili branch of the Shia Islamic faith) serves as the board’s Chairman. AKAM does not report financials to the Microfinance Information Exchange (MIX).

About First Microinsurance Agency Tanzania (FMiA-T): FMiA-T was established at the end of 2009 and focuses most of its activities in rural areas of Tanzania. FMiA-T is supported by the Bill and Melinda Gates Foundation. It plans to target over 300,000 families between 2010 and 2015. FMiA-T does not report financial information to the Microfinance Information Exchange (MIX).

By Julie Moksim, Research Associate

[1] TMCNET.COM: “Insurance Services for the Poor Coming.”

http://www.tmcnet.com/usubmit/-insurance-services-poor-coming-/2010/12/07/5179715.htm

Aga Khan Development Network (AKDN): “Aga Khan Agency for Microfinance.”

http://www.akdn.org/akam_products_microinsurance.asp

MicroCapital’s Microfinance Universe Profile: Aga Khan Development Network

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aga+Khan+Development+Network

MicroCapital’s Microfinance Universe Profile: Aga Khan Agency for

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aga+Khan+Agency+for+Microfinance+(AKAM)

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