Scaling Microinsurance for Waste Pickers

Innovation methods

Data sources

SDG(s)

Sustainable Development Goal(s)

3Good health and well-being

11Sustainable cities and communities

12Responsible consumption and production

Disclaimer:

Please be aware that the content herein has not been peer reviewed. It consists of personal reflections, insights, and learnings of the contributor(s). It may not be exhaustive, nor does it aim to be authoritative knowledge.

Title

Please provide a name for your action learning plan.

Scaling Microinsurance for Waste Pickers

Challenge statement

Challenge type: If you are working on multiple challenges, please indicate if this is your "big bet" or "exploratory" challenge. Please note: we ask you to only submit a maximum of 3 challenges - 1x Big Bet, 2x Exploratory. Each challenge must be submitted individually.

BIG BET

Challenge statement: What is your challenge? (Please answer in specific terms: "Our challenge is that...”.)

Our challenge is scaling Taka Bima microinsurance to waste pickers in Dodoma from a standpoint of financial literacy, insurance trust, regulatory alignment, and affordability. Although the approach has shown success in Tanga, its adaptation to Dodoma's socioeconomic and waste management scene calls for customized involvement techniques, creative payment models, and closer linkages with local government and cooperatives. This difficulty aims to pinpoint the main enablers and obstacles for sustainable development so guaranteeing inclusion, accessibility, and long-term profitability.

Background: What is the history of your challenge? What is causing or driving it? Who is involved? How does the current situation look like? What undesired effects does it produce?

Originally started in Tanga in response to the financial and social risks experienced by informal garbage workers, Taka Bima is the first microinsurance program for rubbish pickers in Tanzania. Designed under a collaboration between Taka ni Ajira Foundation, UNDP Accelerator Lab, and Jubilee Insurance, the project sought to give rubbish pickers financial protection, social security, and better working circumstances. Taka Bima has shown success in improving financial resilience among waste pickers since its founding by providing reasonably priced insurance coverage catered to their demand (UNDP, 2023). Building on this success, the emphasis now is on expanding Taka Bima to Dodoma, the political capital of Tanzania, where the waste management ecology differs greatly from Tanga. Unlike Tanga, where well-organized garbage aggregation systems exist, Dodoma's waste industry stays mostly unorganized with scattered collecting and disposal methods. Financial fragility, limited insurance awareness, legal restrictions, and scalability issues all drive this difficulty (Taka ni Ajira Foundation, 2024). Dodoma's waste pickers are typically not financially literate and are reluctant to take insurance since they view it as unreliable or difficult. Furthermore, the lack of organized garbage cooperatives raises questions regarding the long-term viability of the project since it makes collective premium payments challenging. Moreover, institutional and legal obstacles impede fit into current social protection systems. Although the Tanzanian government has underlined financial inclusion via policies such the National Financial Inclusion Framework (NFIF) 2018–2022, informal workers are mostly left out of official insurance schemes (Bank of Tanzania, 2022). Adapting Taka Bima to this new terrain will depend critically on the Dodoma Municipal Council, local rubbish collectors, and financial institutions as well as on other factors. Dodoma's waste pickers work without any kind of financial protection right now, which causes unstable income, poor access to healthcare, and dangerous working circumstances. A sudden medical emergency or accident might cause great financial difficulty, therefore aggravating poverty and economic uncertainty. Since they remain outside municipal garbage policies and official labor systems, the lack of insurance further reduces their negotiating strength. Furthermore, mistrust of official financial services implies that many waste pickers keep depending on unofficial savings systems, which lack long-term security (World Bank, 2023). Scaling Taka Bima to Dodoma seeks to close the gap between financial protection mechanisms and informal garbage workers. Important learning questions will probe adoption challenges, financial models, legal issues, and how technology could improve accessibility. The knowledge gained from this expansion will guide a national road map for including rubbish pickers into Tanzania's larger circular economy and social protection programs. By means of strategic alliances, creative business models, and community-driven participation, Taka Bima can establish a scalable and sustainable financial safety net for rubbish pickers spread around Tanzania.

Quantitative evidence: What (official) data sources do you have on this challenge that better exemplifies the importance and urgency of this frontier challenge? You can add text, a link, or a picture.

Although they have great difficulty, informal waste pickers are absolutely vital in managing urban waste in Tanzania. Only 1.8% of waste pickers have health insurance; 88% of waste pickers finance their healthcare out-of-pocket according to a 2023 survey spanning eight areas including Dodoma. Their lack of financial security makes them susceptible to financial difficulties resulting from health emergencies. Insurance coverage is still poor nationally; just 6.3% of the adult population had official insurance in 2009, but unofficial insurance use is almost 2%. Although Dodoma generates around 350 tons of solid garbage every day, only roughly 184 tons are collected through official services. Collecting valuable items such plastic bottles (86.2%), plastic containers (66.5%), and metals (55.8%), informal rubbish pickers help to close this gap. Even with their contributions, women frequently operate in dangerous environments without protective gear, which increases health risks and injuries. Acknowledging their critical importance in trash management, scaling microinsurance projects like Taka Bima in Dodoma is crucial to guarantee these workers financial stability and healthcare.

Qualitative evidence: What weak signals have you recently spotted that characterizes its urgency? Please provide qualitative information that better exemplifies the importance and urgency of this frontier challenge. You can add text, a link, or a picture.

Recent observations in Dodoma highlight the pressing challenges faced by waste pickers, underscoring the urgency of addressing their needs. A 2023 survey revealed that over 50% of waste pickers earn below the poverty line, with 35% making between TZS 3,000 to TZS 5,000 daily, equivalent to USD 1.11–USD 1.85. This economic hardship limits their access to essential services like health insurance. Additionally, Dodoma's rapid urbanization has led to inadequate waste management infrastructure, resulting in illegal dumping and environmental degradation. Despite their significant contributions to waste management, waste pickers often face stigmatization and lack formal recognition, exacerbating their vulnerability. These factors collectively emphasize the critical need for interventions that provide financial security and social support to waste pickers in Dodoma.

Value proposition: What added value or unique value proposition is your Accelerator Lab bringing to solving this challenge? Why is it your Lab that needs to work on this challenge and not other actors within UNDP, other stakeholders in the country respectively? Why is it worth investing resources to this challenge?

The UNDP Accelerator Lab in Tanzania brings a unique and innovative approach to addressing the challenges faced by informal waste pickers, particularly in scaling the Taka Bima microinsurance initiative to the Dodoma region. Our Lab's distinctive value proposition lies in our ability to integrate cutting-edge technologies, foster cross-sector partnerships, and apply agile methodologies to complex development issues. Innovative Approach: We leverage Fourth Industrial Revolution technologies to drive sustainable development and social equity. For instance, in the Tanga City Waste Banks initiative, we utilized mobile applications and Geographic Information Systems (GIS) to track waste collection data, which informed the development of Taka Bima, a bespoke microinsurance product for informal waste pickers. This technological integration ensures that solutions are data-driven and tailored to the specific needs of the community.undp.org Cross-Sector Partnerships: Our Lab excels in building and nurturing partnerships across various sectors. In developing Taka Bima, we collaborated with Jubilee Insurance Tanzania and the Taka ni Ajira Foundation to create a microinsurance product specifically designed for informal waste pickers. This collaboration ensures that the solutions are sustainable and have the potential for scalability.undp.org Agile Methodologies: The Accelerator Lab operates with a mandate to rethink fast-paced development challenges by employing distributed problem-solving approaches. We involve youth groups in academic institutions and promote the use of deep learning to investigate various development challenges using AI-based approaches. This agility allows us to rapidly prototype and scale solutions like Taka Bima to new regions such as Dodoma.undp.org Why Our Lab? Our Lab's unique positioning within UNDP allows us to act as a catalyst for innovation, bridging the gap between traditional development approaches and the dynamic needs of informal sectors. While other UNDP units and stakeholders play crucial roles, the Accelerator Lab's focus on experimentation, rapid learning, and technology integration positions us to effectively tackle the complexities of scaling Taka Bima in Dodoma. Investment Justification: Investing resources in this challenge is imperative, as it addresses multiple Sustainable Development Goals (SDGs), including decent work and economic growth, reduced inequalities, and sustainable cities and communities. By providing financial security to informal waste pickers through tailored microinsurance products, we not only enhance their livelihoods but also promote environmental sustainability through improved waste management practices. The success of this initiative in Dodoma can serve as a scalable model for other regions, amplifying its impact nationwide. In summary, the UNDP Accelerator Lab's innovative methodologies, strategic partnerships, and agile operations uniquely position us to address the challenges of scaling Taka Bima in Dodoma. Our involvement ensures that solutions are not only effective but also sustainable and replicable, making it a worthy investment for achieving broader development objectives. Sources

Short “tweet” summary: We would like to tweet what you are working on, can you summarize your challenge in a maximum of 280 characters?

We're expanding TakaBima, a microinsurance initiative, to support Dodoma's informal waste pickers. This project aims to provide financial security and healthcare access to these essential workers, enhancing their livelihoods and promoting sustainable waste management.

Challenge classification

Partners

Who are your top 5 partners for this challenge? Please submit from MOST to LEAST important and state Name, Sector and a brief description of the (intended) collaboration.

Please state the name of the partner:

he successful scaling of the Taka Bima microinsurance initiative to Dodoma relies on strategic collaborations with key partners. Here are the top five partners, ranked from most to least important, along with their sectors and a brief description of their (intended) collaboration: Taka ni Ajira Foundation Sector: Non-Governmental Organization (NGO) Description: Specializing in community empowerment and sustainable waste management, Taka ni Ajira Foundation has been instrumental in implementing the Waste Banks initiative in Tanga City. Their expertise in engaging informal waste pickers and promoting sustainable waste management practices is crucial for replicating the Taka Bima model in Dodoma. undp.org Jubilee Insurance Tanzania Sector: Insurance Description: As a leading insurance provider, Jubilee Insurance partnered in developing Taka Bima, offering coverage tailored to the needs of informal waste pickers. Their role includes underwriting policies, managing claims, and ensuring the financial sustainability of the microinsurance product. Dodoma Municipal Council Sector: Governmentfsdt.or.tz+1linkedin.com+1 Description: The local government authority is responsible for waste management services in Dodoma. Collaborating with the Municipal Council is essential for integrating Taka Bima into existing waste management frameworks, facilitating policy support, and ensuring alignment with local regulations. Tanzania Insurance Regulatory Authority (TIRA) Sector: Regulatory Body Description: TIRA oversees the insurance industry in Tanzania. Their support is vital for ensuring that Taka Bima complies with national insurance regulations and for facilitating any necessary approvals or modifications to accommodate the unique aspects of microinsurance for informal workers. fsdt.or.tz Financial Sector Deepening Trust (FSDT) Sector: Financial Inclusionfsdt.or.tz+2dhan.org+2brill.com+2 Description: FSDT focuses on expanding financial inclusion in Tanzania. Their involvement can provide valuable insights into microinsurance best practices, support capacity-building initiatives, and assist in developing strategies to reach and educate informal waste pickers about the benefits of insurance. fsdt.or.tz

What sector does our partner belong to?

Private Sector

Please provide a brief description of the collaboration.

The UNDP Accelerator Lab in Tanzania is collaborating with key partners to scale the Taka Bima microinsurance initiative to Dodoma, aiming to provide informal waste pickers with financial security and healthcare access. In Tanga City, the Lab partnered with the Taka ni Ajira Foundation to implement the Waste Banks initiative, collecting daily waste data and creating a credit score matrix. This data facilitated the development of Taka Bima, a bespoke microinsurance product for informal waste pickers, in collaboration with Jubilee Insurance Tanzania. The initiative leverages technology to drive sustainable development and social equity. undp.org In Dodoma, the Lab plans to replicate this model by collaborating with the Dodoma Municipal Council to integrate Taka Bima into existing waste management frameworks, ensuring alignment with local regulations. Engagement with the Tanzania Insurance Regulatory Authority (TIRA) will ensure compliance with national insurance regulations, while the Financial Sector Deepening Trust (FSDT) will provide insights into microinsurance best practices and support capacity-building initiatives. These collaborations aim to empower informal waste pickers in Dodoma, enhancing their livelihoods and promoting sustainable waste management practices. Sources

Is this a new and unusual partner for UNDP?

Learning questions

Learning question: What is your learning question for this challenge? What do you need to know or understand to work on your challenge statement?

To effectively scale the Taka Bima microinsurance initiative for informal waste pickers in Dodoma, we aim to address the following learning questions: What are the primary barriers to microinsurance adoption among informal waste pickers in Dodoma, and how can we tailor Taka Bima to overcome these challenges? Understanding these obstacles is crucial, as studies have identified factors such as affordability, lack of awareness, and distrust in insurance providers as common barriers to microinsurance uptake among informal workers. How can we leverage digital financial services to enhance the accessibility and affordability of Taka Bima for waste pickers in Dodoma? Exploring the role of digital platforms is essential, given their potential to facilitate microinsurance access and contribute to broader financial inclusion. brill.com What role can community-based organizations and local stakeholders play in promoting and sustaining microinsurance enrollment among waste pickers? Engaging local entities is vital, as their involvement can significantly influence the success and sustainability of microinsurance programs. How can we design Taka Bima to address the specific risks and needs of waste pickers, ensuring the product provides tangible value and encourages long-term participation? Tailoring the microinsurance product to meet the unique needs of waste pickers is critical for its effectiveness and acceptance. undp.org What monitoring and evaluation mechanisms are necessary to assess the impact of Taka Bima on the livelihoods and well-being of waste pickers in Dodoma? Implementing robust evaluation strategies is essential to measure the program's effectiveness and inform necessary adjustments.

To what stage(s) in the learning cycle does your learning question relate?

Grow

Usage of methods: Relating to your choice above, how will you use your methods & tools for this learning question? What value do these add in answering your learning question?

To effectively scale the Taka Bima microinsurance initiative for informal waste pickers in Dodoma, we will employ a combination of data analysis, crowdsourcing, data visualization, and human-centered design (HCD) methodologies. These approaches will collectively enhance our understanding of the unique challenges faced by waste pickers and inform the development of tailored microinsurance solutions. Data Analysis: We will collect and analyze quantitative data on waste pickers' demographics, income levels, health risks, and existing coping mechanisms. This analysis will help identify patterns and correlations that are crucial for designing relevant insurance products. For example, understanding the frequency and types of injuries can inform the coverage specifics of the microinsurance product. Crowdsourcing: Engaging waste pickers directly through crowdsourcing will allow us to gather real-time insights and diverse perspectives on their needs and preferences. This participatory approach ensures that the solutions developed are grounded in the actual experiences of the target community. Crowdmapping techniques can be utilized to visualize areas with high concentrations of waste-picking activities, thereby identifying regions where insurance services are most needed.en.wikipedia.org Data Visualization: By transforming complex data sets into intuitive visual formats, we can effectively communicate findings to stakeholders, including waste pickers, insurance providers, and policymakers. For instance, interactive maps highlighting areas with high injury rates can underscore the urgency for microinsurance interventions in specific locales. Human-Centered Design (HCD): Applying HCD principles involves deeply understanding the waste pickers' daily routines, challenges, and aspirations. This empathetic approach ensures that the microinsurance products are not only relevant but also user-friendly and accessible. Iterative prototyping and testing with waste pickers will refine the insurance offerings to align with their specific needs and contexts.fsdkenya.org Integrating these methodologies will provide a comprehensive understanding of the barriers to microinsurance adoption among informal waste pickers in Dodoma. This multifaceted approach ensures that the Taka Bima initiative is both effective and sustainable, ultimately enhancing the livelihoods and well-being of the waste-picking community.

Existing data gaps: Relating to your choice above, what existing gaps in data or information do these new sources of data addressing? What value do these add in answering your learning question?

To effectively scale the Taka Bima microinsurance initiative for informal waste pickers in Dodoma, we will employ data analysis, crowdsourcing, data visualization, and human-centered design (HCD) to address existing data gaps and enhance our understanding of their needs. Data analysis will involve collecting quantitative data on demographics, income levels, and health risks to identify patterns crucial for designing relevant insurance products. Crowdsourcing will engage waste pickers directly, gathering real-time insights into their challenges and preferences, ensuring solutions are grounded in their experiences. Data visualization will transform complex datasets into intuitive formats, effectively communicating findings to stakeholders and identifying areas requiring targeted interventions. HCD will involve deeply understanding waste pickers' daily routines and aspirations, ensuring microinsurance products are user-friendly and accessible. Integrating these methodologies will bridge data gaps related to demographic profiles, health risks, and financial behaviors, enabling us to tailor Taka Bima effectively. This comprehensive approach ensures the initiative is both effective and sustainable, ultimately enhancing the livelihoods and well-being of informal waste pickers in Dodoma.

Closing

Early leads to grow: Think about the possible grow phase for this challenge - who might benefit from your work on this challenge or who might be the champions in your country that you should inform or collaborate with early on to help you grow this challenge?

To expand Taka Bima microinsurance in Dodoma, early collaboration with key stakeholders is essential. The Taka ni Ajira Foundation, which has been instrumental in waste management initiatives, can provide valuable insights and support. The Tanzania Environmental Conservation Society (TECOSO) offers expertise in environmental protection and community development. Engaging with the International Alliance of Waste Pickers can amplify advocacy efforts. Partnering with Africraft, known for supporting waste pickers, can enhance capacity-building initiatives. Additionally, collaborating with the Financial Sector Deepening Trust (FSDT) can provide insights into microinsurance best practices and support capacity-building initiatives. These collaborations can drive the initiative's growth and success.

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