By Farida Ramadhani and Silya Kombe, Dodoma
Minister for Finance, Ambassador Khamis Mussa Omar, has directed the National Insurance Corporation (NIC) to develop robust long-term strategies aligned with the country’s broader development ambitions, signalling a push to position the insurance sector as a key driver of economic growth under Vision 2050.
The directive was issued in Dodoma during high-level talks between the minister and NIC’s leadership, held to assess opportunities for strengthening the contribution of the insurance industry to Tanzania’s evolving economy.
Minister Omar said Tanzania’s long-term policy frameworks – including the current Five-Year Development Plan and the newly launched National Development – Dira 2050 – present significant growth opportunities, particularly for the insurance sector, which he described as one of the pillars of a resilient and inclusive economy.
“As we implement Dira 2050, we are looking at major economic opportunities. The insurance sector is clearly identified as one of the key contributors to national development,” he said. “NIC, as a public institution, must strategically position itself to seize these opportunities.”
Insurance sector at the heart of transformation
The minister pointed to large-scale industrialisation, the expansion of special economic zones, growth in commercial agriculture, infrastructure development and capital markets as areas that will require sophisticated insurance products and risk management solutions.
“Tanzania is entering a phase of accelerated industrial growth – new factories, industrial parks, special economic zones, modern agriculture and other productive sectors. All these developments demand a strong, innovative and responsive insurance sector,” Ambassador Omar noted.
He added that NIC must go beyond traditional insurance offerings and proactively design products that support emerging sectors, climate resilience, disaster risk financing and large infrastructure projects, which are central to the country’s long-term growth strategy.
Insurance awareness and market deepening
Beyond corporate strategy, the finance minister also urged NIC to intensify public education and marketing efforts to improve insurance penetration across the country.
Insurance penetration in the country remains below two percent of GDP, well under the African average, highlighting untapped potential in both retail and corporate segments.
He emphasised that improved insurance awareness is critical, particularly in the face of increasing climate-related risks, health shocks and business disruptions.
“Insurance education is not optional – it is essential. Citizens must understand the value of insurance, especially during disasters and economic shocks,” he said.
This push aligns with broader government efforts to deepen financial inclusion and strengthen risk management across households, SMEs and strategic industries.
NIC eyes expansion and strategic investments
Responding to the minister’s remarks, NIC Acting Managing Director, Kaimu Abdi Mkeyenge, said the corporation has continued to perform strongly and is actively repositioning itself to support national development priorities.
He said NIC is expanding service delivery nationwide while increasing investments in development-oriented sectors such as industry, infrastructure and capital markets, with the dual objective of enhancing national revenues and strengthening the institution’s balance sheet.
“We are committed to offering quality insurance services across the country while investing in strategic projects that support economic growth,” Mr Mkeyenge said.
As Tanzania advances towards Dira 2050 – which targets middle-income transition, industrial competitiveness and long-term economic resilience – the government’s message to state-owned financial institutions is clear: align strategy with national ambitions or risk being left behind. For NIC, the directive signals both opportunity and responsibility – to evolve from a traditional insurer into a strategic partner in Tanzania’s long-term economic transformation.
