In a major development for Botswana’s agricultural sector, the National Development Bank (NDB) has unveiled a new suite of bancassurance products. Underwritten by Botswana Insurance Company (BIC) and Botswana Life Insurance Company, these products are designed to improve the financial well-being and security of local farmers.
Executives from both entities emphasised the agricultural sector’s crucial role in boosting the economy and its significant contribution to the country’s Gross Domestic Product (GDP). Given the sector’s exposure to risks such as unpredictable weather patterns and market volatility, the new Molemi-Morui Insurance Packages and Gomotsega Group Funeral and Group Life Assurance Plan were developed to offer essential support and protection for farmers. These innovative insurance solutions aim to provide a comprehensive safety net, allowing farmers to continue their vital work with peace of mind, knowing they are safeguarded against unforeseen challenges.
At the launch, NDB Chief Executive Officer Ogone Madisa stated that by introducing these comprehensive insurance solutions, the bank aims to reaffirm its commitment to empowering individuals and businesses. He emphasised that the bank seeks to provide the tools and security needed for people to pursue their aspirations with confidence.
“The new products that we are about to unveil were designed with the rationale to tailor make our offerings to the unique and challenging needs of our clientele within the Agric value chain,” she elaborated.
According to Madisa, the insurance solutions offer affordability, simplicity, faster turnaround times, and risk management advisory services thus ensuring customers’ peace of mind and allowing them to focus on innovation and growth.
“When Farmers know that they are protected against potential pitfalls, they can redirect their energy and resources towards nurturing their ideas, expanding their customer base, and pushing the boundaries of what is possible. Insurance acts as a shield, protecting Farmers’ investments and hard work, and enabling them to take bolder steps towards success and feeding the nation,” she added.
BIC Chief Executive Officer, Newton Jazire pointed out that the strategic partnership between NDB and Botswana Insurance Holdings Limited (BIHL), through BIC and Botswana Life is a testament to the insurance sectors towards the farming community and a powerful step forward in ensuring the sustainable development of Botswana’s agricultural sector.
“Through this collaboration, farmers will get access to Crop Insurance, which safeguards farmers against losses due to adverse weather conditions, pests, and diseases. Livestock insurance provides coverage for livestock against disease, accidents, and theft and equipment and machinery insurance to ensure that vital farming equipment and machinery are protected against damage and breakdown. Comprehensive Farm Insurance covers all aspects of the farm, from infrastructure to produce,” he explained.
Jazire emphasised that the products, which he said are the very best of BIHL are designed to be flexible, affordable, and accessible, ensuring that even the smallest farmers can benefit from the protection it offers.
“Our partnership with the NDB is a strategic alliance that brings together two institutions committed to the growth and prosperity of Botswana’s agricultural sector. NDB has long been a pillar of support for local farmers, providing them with the financial resources needed to grow and thrive. By combining our insurance expertise with their financial support, we are creating a robust framework that not only protects but also empowers our farmers,” he said.
By working together NDB and BIC say they aim to enhance risk management by providing coverage against common agricultural risks to help farmers stabilise their income to ensure their long-term sustainability. In addition to risk management, the new bancassurance products are designed to promote financial inclusion, making it easier for farmers to access both financial resources and insurance protection, fostering an inclusive financial ecosystem. Another significant aspect of the new offerings is their role in supporting agricultural innovation by mitigating the risks associated with adopting new farming techniques and technologies.
