DAR ES SALAAM: THE insurance sector has been recognised as playing a significant role in promoting national economic growth by protecting property, businesses and citizens against various risks.

The remarks were made by the Minister of State in the President’s Office – Public Service and Good Governance, Mr Ridhiwani Kikwete, while speaking at an Iftar event organised by Zanzibar Insurance Corporation (ZIC) for various stakeholders.

As East Africa's economies expand, integrating robust insurance frameworks is critical. In markets like Kenya and Tanzania, low insurance penetration rates leave multi-million dollar investments vulnerable to climate shocks, supply chain disruptions, and geopolitical volatility.

Shielding Investments from Risk

Mr Kikwete noted that in today's business and investment environment, no economy can grow without a robust insurance system capable of protecting investments and managing risks effectively.

“Investors need a safe environment in which to conduct business. Therefore, insurance institutions play a crucial role in ensuring economic growth by safeguarding assets and development projects,” he said, addressing top industry executives.

He commended President Samia Suluhu Hassan for her leadership in strengthening the nation’s environment for development and investment. The push for financial inclusion has seen an uptick in micro-insurance products targeting the agrarian sector.

ZIC's Crucial Role

On a related note, Mr Kikwete praised Zanzibar Insurance Corporation for its contribution to providing insurance services that protect citizens’ assets, businesses and development projects.

• ZIC provides crucial cover for maritime and logistics operations.
• The corporation safeguards millions in citizen assets.
• Their efforts directly stabilize the regional financial sector.

He emphasised that such efforts have strengthened the insurance sector while also improving the welfare of citizens and the national economy as a whole. Without this safety net, economic recovery from natural or economic disasters would be impossible.

A Collaborative Economic Effort

He further stressed that national economic development cannot be achieved by a single institution alone, but requires cooperation between the government, private sector and other development stakeholders.

He called on citizens to continue safeguarding peace and to use the holy month of Ramadan to pray for the country’s continued stability, unity and development. Meanwhile, the Acting Director of General Insurance at Zanzibar Insurance Corporation, Mr Sabri Omar Ali, echoed these sentiments.

"A protected economy is a resilient economy. As we witness massive infrastructure projects taking off across the region, our mandate is to ensure these assets are shielded against the unpredictable," stated Mr Sabri Omar Ali.