SMALLHOLDER farmers across are set to benefit from a new tractor insurance product launched to cushion them against financial losses and boost productivity in the agricultural sector.

With tractors playing a central role in modernizing small-scale farming, many farmers have faced challenges due to the high costs of equipment, repairs, and lack of protection against accidents.

 In response, a local insurance firm Strategis Insurance (T) Limited unveiled a comprehensive tractor insurance product tailored specifically to support the needs of smallholder farmers.

“This is not just about insurance; it’s about empowering farmers and safeguarding their investments,” said Jabir Kigoda, CEO of the company behind the product.

The policy, he explained, covers not only the tractor but also essential components like the engine, transmission, hydraulics, tires, and electrical systems, as well as attached implements such as ploughs, trailers, and seeders. Driver protection in case of accidents is also included.

The launch comes amid the government’s increased focus on agriculture, with over 2trn/- allocated in the 2025/26 budget to strengthen smallholder resilience and productivity.

To expand access, the insurer is working with Amcos, regional offices, and banks, while also aligning with efforts by the Tanzania Agriculture Insurance Consortium (TAIC) to insure five million farmers.

Dr Flora Minja, Group CEO, emphasized the need for awareness, noting that many farmers still lack information on available insurance options.

“Partnerships and education are key to ensuring these products reach those who need them most,” she said.

As Tanzania’s agriculture sector continues to grow, innovative solutions like tractor insurance are becoming essential to securing farmers’ livelihoods and ensuring national food security.