ZIC eyes tapping blue economy benefits

ZIC eyes tapping blue economy benefits

As Zanzibar is pushing ahead with the blue economy agenda, Zanzibar Insurance Corporation (ZIC) is also looking at related emerging opportunities. ZIC chief executive officer Arafat Haji explains how these opportunities will power the economy in an interview with The Citizen reporter Gadiosa Lamtey. Read on:

QUESTION: Zanzibar is currently executing its blue economy drive, how does your organization exploit emerging opportunities to help grow the economy?

ANSWER: The blue economy has many things and one of them is tourism. So, our insurance firm is well prepared to ensure hotels are covered to protect guests and owners in case of an uncertainty. By compensating them, it will enable the economy to regain and grow, increase number of tourists while locals would retain their jobs.

Recently, we launched medical evacuation insurance targeting tourists who mostly prefer beaches that are on the outskirts of the city where roads are yet to be fully developed.

With such a service, if a tourist develops a health emergency, a helicopter will pick them. This increases trust in the local tourism market, this is one of our contributions to the blue economy drive.

Also, we are in talks with the government to ensure that when a tourist arrives in the country, they get a travel insurance from a local firm. Once they pay the premiums, the money remains local and that adds the amount of foreign exchange that will remain here.

On the same note, Zanzibar has recently shown signs of oil and gas in the deep-sea, which is also another blue economy opportunity. We are now planning to build capacity of some of our employees so that they can be ready to provide insurance for those big projects when the time is ripe.

Personally, I recently went to Uganda to learn how they participate in the oil pipeline from Hoima to Tanga. I learnt of challenges they faced and how they tackle them in attempt to ensure some premiums remain in the country instead of going overseas.

Q: How do you tap the opportunity in Islamic Insurance (Takaful) which Tanzania Insurance Regulatory Authority (Tira) recently issued guidelines for its rollout?

Takaful has been positively received in Zanzibar and people need it. Basically, ZIC was the first to apply for the establishment of Takaful which is based on Islamic principles. So, when the guidelines came out, it was very great news. ZIC plans to establish a subsidiary company that will be dedicated to handle Takaful only.

We have already secured a consultant who will guide us on how to provide the insurance. We are also in negotiations with the government so that it can provide a guarantee of Sh2.5 billion which will be the initial capital of the subsidiary company.

Q: What was ZIC’s performance in the last three years?

Our performance has continued to accelerate year after year despite internal challenges and the presence of Covid-19. In that period, we were able to increase premiums from Sh19 billion to Sh20 billion.

Q: What are the strategies to make the organization more profitable?

After being appointed in June 2021, one of my responsibilities in reviving the organization to increase profits was to change the working culture and guide staff to do away with the ‘doing business as usual’ syndrome, instead of responding to the market needs.

Another thing was to change the communication system and strengthen the digital systems which have helped reduce operating costs and fraud loopholes because most of the systems were analogue.

I also established a performance management system that measures staff performance every year.

All the changes have helped to increase the performance we plan to increase premiums from Sh20 billion to more than Sh40 billion by the end of the year.

Currently, ZIC is run as a department instead of being a corporate entity. You know, private companies have quick decisions and go with the speed of the market. Right now, we are in negotiations with the government to allow ZIC to do modern business.

The government should give us a target and we meet at the Annual General Meeting. By doing so, it will therefore help many decisions such as purchases to be made quickly.

We are also looking at the possibility of bringing young people from the private sector with digital skills to make the business alive and respond to foreign customers who want quick answers.

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Tanzania's opposition party ACT Wazalendo honours veteran politician under new policy
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Tanzania’s opposition party ACT Wazalendo honours veteran politician under new policy

Unguja. Opposition party ACT Wazalendo today officially bids farewell to its former Chairman, Juma Duni Haji, also known as Babu Duni, as part of a new policy designed to honor retired senior leaders at a ceremony held at Kiembesamaki, Zanzibar.

The initiative highlights the party’s commitment to recognizing and supporting individuals who have served with dedication and integrity.

Babu Duni, who stepped down earlier this year, was succeeded by Othman Masoud, now the First Vice President of Zanzibar.

The policy aims to provide ongoing respect and support to retired leaders, ensuring their continued recognition and contribution to the party’s development.

“Recognizing their significant contributions to the development and prosperity of the party, this policy ensures that retired leaders continue to be acknowledged and respected by both the party and the community,” the policy states.

To benefit from this policy, leaders must not have left or been expelled from the party. They must have served the party with honor and dedication. The national leadership committee will determine whether a leader has fulfilled these criteria.

The policy seeks to honor retired leaders, protect their dignity, acknowledge their contributions, leverage their ideas for the party’s growth, and support them to the best of the party’s ability.

In honoring these leaders, the party will provide a vehicle, the type of which will be determined by the national leadership committee. Additionally, they will receive a monthly allowance, with the amount also set by this committee.

Other benefits include health insurance. If a leader does not own a home, the party will cover their rent at a rate decided by the committee.

The leadership committee may also grant special recognition based on the leader’s contributions. Retired leaders will participate in decision-making meetings according to procedures outlined in the party’s constitution.

Depending on the party’s resources at the time, the policy may also apply to retired deputy chairpersons for both the mainland and Zanzibar, the Secretary-General, Deputy Secretary-General for both mainland and Zanzibar, and the party’s Attorney General.

Additionally, leaders, executives, or members with exceptional contributions to the party’s protection, advocacy, and defense may also benefit, as determined by the leadership committee.

Currently, those who are eligible for benefits under this policy include Juma Duni Haji (retired party Chairman) and Zitto Kabwe (retired party leader).Continue Reading