Zimbabwe's push for financial inclusion is increasingly extending beyond traditional banking services, with State-owned institutions moving to bring insurance products closer to farmers, traders and rural communities that have long remained outside formal risk protection systems.

The People's Own Savings Bank (POSB) and AFC Insurance Company have entered into a strategic bancassurance partnership that is expected to widen access to insurance products, particularly in the agricultural sector where climate shocks, livestock losses and transport-related risks continue to threaten livelihoods and productivity.

Under the arrangement, POSB will offer a range of insurance products through its branches and service channels, including crop insurance, livestock insurance, agricultural loan protection, stock insurance and goods-in-transit cover.

The partnership comes as Zimbabwe seeks to strengthen agricultural resilience, improve financial inclusion and expand access to essential financial services in rural communities, where insurance uptake remains relatively low despite agriculture being one of the country's key economic pillars.

POSB chief executive Garainashe Changunda said the partnership reflected a broader commitment to making financial services more accessible and relevant to communities across the country.

"This partnership with AFC Insurance is a clear demonstration of our commitment to delivering inclusive and convenient financial solutions to our customers," said Changunda

"By leveraging synergies within the Mutapa Investment Fund and working closely with our strategic partners, we are expanding our service offering and bringing essential insurance products closer to the people we serve."

Changunda said the collaboration was also aligned with national development priorities.

"As State-owned institutions, we are also aligned in supporting national priorities, and this collaboration positions us to better contribute to the objectives of NDS2, particularly in financial inclusion and agricultural development."

For years, access to insurance products.as largely been concentrated in urban centres, leaving many smallholder farmers exposed to losses arising from droughts, disease outbreaks, transport accidents and other unforeseen events.

The partnership is expected to bridge that gap by leveraging POSB's extensive branch network and strong rural footprint to make insurance services more accessible to communities that need them most.

Both institutions are subsidiaries of the Mutapa Investment Fund, and the collaboration highlights the growing role of intra-group partnerships in strengthening State-owned enterprises while improving service delivery.

AFC Insurance managing director Cuthbert Masukume said the arrangement would enable the company to extend its reach while supporting productive sectors of the economy.

"Our partnership with POSB enables us to extend our reach and deliver tailored insurance solutions that support agricultural productivity and business resilience," said Masukume.

"By combining our strengths, we are better positioned to serve farmers, enterprises and communities across the country, particularly in rural areas where access to such services is critical."

The agreement comes at a time when farmers are increasingly being encouraged to adopt risk-management strategies as climate-related challenges continue to affect agricultural production across the country.

Insurance is increasingly being recognised as an important tool for protecting investments, securing financing and boosting confidence among farmers and agribusinesses.

The partnership also marks another step in POSB's transformation journey as the institution seeks to evolve beyond conventional banking services.

By incorporating insurance products into its portfolio, POSB is positioning itself as a one-stop financial services provider where customers can access savings, financing and insurance solutions under one roof.

Beyond expanding access to insurance, the collaboration is expected to strengthen economic resilience by helping farmers and businesses recover more quickly from losses while improving confidence in productive sectors of the economy.