The African Development Bank Group has signed a $997,000 grant with the Agriculture and Climate Risk Enterprise (ACRE Africa). The grant, provided through the Africa Digital Financial Inclusion Facility (ADFI), will expand access to climate-smart agricultural insurance for smallholder farmers in Tanzania.
Headquartered in Kenya, ACRE Africa has offices in six countries across Africa. It enables farmers to thrive despite climate challenges through end-to-end risk mitigation solutions. These include access to credit and inputs, capacity building, advisory services, insurance cover, and access to markets.
The Bridging the Agricultural Risk Protection Gap to Scale Climate Smart Insurance Project will expand access to climate risk insurance. It will also offer complementary technologies and tailored financial services. The project will support digital systems for farmer registration, premium collection, monitoring and claims processing. Inclusive distribution will run through community-based agents and partnerships with financial institutions, input providers and off-takers.
The project aims to reach 300,000 farmers across 15 regions. It will drive economic development by empowering women and youth, agriculture’s largest workforce contributors, to strengthen climate resilience and agricultural productivity.
Alex Mubiru, Director General for the Bank Group’s East Africa Regional Office, said:
“This partnership is about helping smallholder farmers better protect their livelihoods and build resilience in the face of increasing climate risks. But it also speaks to a broader principle that runs through our work: development must be increasingly inclusive, not only geographically, but also across age, gender and income. Digital finance gives us an opportunity to reach communities and people who have too often remained beyond the reach of traditional financial services.”
Ewan Wheeler, CEO of ACRE Africa, emphasised the critical role of digital agricultural insurance in protecting smallholder farmers’ livelihoods.“Through this partnership with ADFI, we aim to scale innovations that make climate-smart insurance and financial inclusion more accessible for farmers across Tanzania. By combining insurance with data analytics, we support stakeholders across the agricultural value chain to make informed decisions.”
The signing ceremony took place on 28 October at the Bank’s East Africa Regional Office in Nairobi, Kenya. The ADFI grant complements an in-kind contribution of $437,000 from ACRE Africa, bringing the total project financing to roughly $1.43 million.
The initiative aligns with the Government’s National Financial Inclusion Framework 2023–2028 and the Tanzania Development Vision 2050. It also reflects the Bank Group’s Climate Change and Green Growth Framework, supporting national priorities for financial inclusion, climate resilience and sustainable agricultural development. Since 1971, the African Development Bank Group has mobilised nearly $10 billion to finance more than 170 projects and programmes in Tanzania. These cover strategic sectors including transport, agriculture, energy, social, and the financial sector.
About the Africa Digital Financial Inclusion Facility:
Launched in 2019, the Africa Digital Financial Inclusion Facility (ADFI) is hosted and managed by the African Development Bank Group. It has promoted the growth, adoption, and use of digital financial services for millions of Africans, particularly women. Its work covers three areas: digital financial infrastructure, policy and regulation, and products and innovation. Gender inclusion and capacity building are cross-cutting priorities.
Contact: Louise Simpson, Communication and External Relations Department, media@afdb.org
