TIMB partners with AFC Insurance to improve the accessibility of insurance services
Staff Writer
The Tobacco Industries and Marketing Board (TIMB) says it has partnered with AFC Insurance to improve access to insurance services for small-scale tobacco farmers, Insurance 24 reports.
This comes as agriculture has been seen to play a significant role in creating value for the Zimbabwean economy and society.
As a largely agricultural-based nation, Zimbabwe heavily depends on its agricultural sector for food production, employment generation, and export earnings.
Speaking during a media interface in Harare yesterday, TIMB head of business development Tapiwa Chimedza said the initiative is in line with the government’s goal of financial inclusion of small-scale farmers and their viability.
Chimedza said that 500 small-scale tobacco farmers were insured in the 2023–2024 season through this facility.
“TIMB partnered with AFC Insurance to improve the access to insurance services for small-scale tobacco farmers.
“This initiative is in line with the government’s goal of financial inclusion of small-scale farmers and their viability. 6,500 small-scale tobacco farmers were insured in the 2023–2024 season through this facility,” he said.
The added benefit is that the insurance product covers field-to-floor risks, which include hail and wind damage.
This comes as farming activities have over time been exposed to various risks such as unpredictable weather patterns, pests, diseases, and market fluctuations, which can lead to crop failures, income losses, and economic instability.
Tobacco has not been an exception and has been mostly affected by natural disasters like hailstorms.
Experts argue that through agriculture insurance, the Zimbabwean economy benefits from increased resilience and stability in the agricultural sector.
Meanwhile, the 2024 auction tobacco marketing season opens on Wednesday, March 13, 2024, with contract tobacco sales starting on Thursday, March 14, 2024.
This year, prices on auction floors are expected to be determined by the bidding process, where the highest bid will be the final price on every tobacco bale.
“A grade-price matrix derived from the average grade prices from the previous day auction sales will determine the minimum price for every grade on the contract sales.
Tobacco farmers shall be paid 75% of their sales proceeds in foreign currency, and the 25% portion shall be paid in local currency on net proceeds after settlement of all the loans, levies, and other marketing costs.
The foreign currency component shall be deposited into farmers’ nostro accounts, while the ZWL$ shall be deposited into ZWL$ accounts.
Tobacco growers shall be eligible to participate at the Foreign Exchange Auction for the purposes of importing key inputs required in the production of tobacco,” TIMB said in a statement of preparedness.
AFC Insurance aims to be a leading provider of innovative insurance and risk transfer solutions in Zimbabwe and beyond.
