NIC, Equity Bank partner to boost agricultural insurance and digital loans
DAR ES SALAAM: THE National Insurance Corporation (NIC) and Equity Bank have signed a strategic partnership agreement to provide innovative solutions for agricultural insurance and digital lending, aiming to drive economic growth through the financial sector.
The agreement, signed on Wednesday in Dar es Salaam, marks a significant milestone in fostering collaboration between the two institutions to strengthen financial inclusion and improve access to capital for businesses and individuals.
NIC Managing Director, Mr Abdi Mkeyenge described the partnership as a critical step in enhancing the capacity of commercial banks to lend by utilizing insurance premiums as a source of capital.
“This partnership allows us to invest in commercial banks, enabling them to increase their liquidity. Liquidity is essential for these banks to support businesses, citizens, and investors entering the country. This collaboration ensures that economic activities proceed smoothly and without disruptions,” Mkeyenge said.
He further explained that the agreement would not only provide Equity Bank with a stronger capital base but also benefit NIC through returns on investments.
Additionally, he said that NIC will serve as the insurer for loans issued by the bank, ensuring that all disbursed loans are protected.
“By insuring these loans, we are creating a safety net that benefits both the bank and its customers. This partnership strengthens our mutual ability to support economic development,” he added.
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Equity Bank Managing Director , Ms Isabela Maganga echoed these sentiments, emphasizing that providing insurance services requires collaboration with expert institutions like NIC.
“Banks cannot operate in isolation when it comes to insurance services. NIC’s extensive expertise and wide-reaching capabilities make them the ideal partner for us. Together, we can address high-priority customer needs and tap into significant market opportunities,” she said.
She highlighted agriculture as a key focus for Equity Bank, along with a strong commitment to empowering small and medium-sized enterprises (SMEs).
“We have prioritized the agricultural sector and SME customers. Through our digital platforms, we aim to provide these groups with seamless access to capital to drive their growth and success,” she noted.
The partnership is expected to create a robust financial ecosystem that supports Tanzania’s economic ambitions while addressing the specific needs of underserved sectors.
