Bangladesh’s livestock sector plays a crucial role in rural livelihoods, contributing significantly to food security and economic resilience. However, smallholder farmers continue to face challenges such as limited access to financial resources, modern technology, and veterinary services. The recent imposition of a 15 per cent VAT on agricultural microinsurance and cattle insurance has further increased premium costs. Unless addressed, this will continue to make insurance less accessible to marginal cattle farmers who need it most.
To address these challenges, BRAC’s Microfinance programme has officially launched the ‘Livestock Grow Initiative’ to ensure financial security and sustainable development for livestock farmers across the country.
The official inauguration took place on Monday, 3 February, at BRAC Centre in Dhaka. The event was chaired by Asif Saleh, Executive Director of BRAC. Dr. M. Aslam Alam, Chairman of the Insurance Development and Regulatory Authority (IDRA), attended as the chief guest, while Brigadier General (Retd.) Shafique Shamim, Managing Director and CEO of Sena Insurance PLC, was present as the special guest. Other distinguished attendees included Dr. ABM Saifuzzaman, Director (Budget, Accounts and Audit) at the Department of Livestock; Dr. Delwar Hossain, Joint Secretary at the Financial Institutions Division (FID), Ministry of Finance; and K. A. M. M. Raisul Islam, Director (Finance, Fraud Management and Accounts) at the Microcredit Regulatory Authority (MRA). BRAC Microfinance Programme’s Senior Director, Arinjay Dhar, delivered the welcome speech, while Associate Director Md. Belayet Hossain highlighted various aspects of BRAC’s microinsurance programme.
Asif Saleh highlighted that doing business and doing good do not have to be mutually exclusive. He noted that BRAC has demonstrated that inclusive business models may involve initial risks, investment and challenges but ultimately prove to be scalable and commercially sustainable. For that to happen a lot of sector development work needs to take place before the private sector puts their capital in sectors which seem risky. BRAC’s social enterprises like poultry, seed, dairy, Aarong are good examples of that. For the micro-insurance sector to flourish, it cannot be seen as CSR activity but must be developed as a sustainable business model using the microfinance distribution channel.
in his opening remarks, Arinjoy Dhar, stated that Microfinance helps people rise out of poverty, while insurance ensures they stay out of it. It serves as a safety net, enabling individuals to recover from setbacks. By co-designing products with communities, BRAC ensures accessible solutions tailored to their needs.
Chief guest Dr. M. Aslam Alam stated that Bangladesh has the lowest insurance penetration in South Asia, and the trend is declining. To reverse this, the country must focus on microinsurance. Strengthening bancassurance and insurtech, along with policy reforms and a dedicated microinsurance body, is crucial. He emphasised that collaborative efforts from the government and partners are essential to driving uptake and adaptation.
Special guest Brigadier General (Retd.) Shafique Shamim remarked that empowering farmers through insurance is an honour, despite challenges in adoption and adaptation. He stressed that greater collaboration between the government, insurers, and partners will ensure broader support for livestock farmers nationwide.
Dr ABM Saifuzzaman emphasised that stronger collaboration and coordination among stakeholders will help bridge gaps that hinder the adoption of cattle insurance.
Dr Delwar Hossain stated that NGOs play a vital role in addressing the financial and insurance needs of marginalised communities. He noted that combining microfinance and microinsurance creates a win-win solution and expressed hope that the initiative will be replicated and scaled further.
A. M. M. Raisul Islam underscored the importance of integrating insurance education into the curriculum to raise awareness. He also suggested that cattle insurance should cover theft alongside other risks to ensure comprehensive protection.
The Livestock Grow Initiative is designed to empower smallholder livestock farmers by mitigating financial losses caused by natural disasters and health risks affecting their animals. Farmers engaged in dairy production and cattle fattening will receive financial services, livestock insurance, and healthcare support to enhance their productivity and economic resilience. The programme also includes telemedicine services for livestock health and provision of free grass seeds for farmers in disaster-prone areas to ensure better feed security for their cattle.
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