“We believe that access to insurance and better risk management to reduce vulnerability are essential to sustainable development, and the world’s poor will not achieve lasting prosperity without them"
- Katharine Pulvermacher, Former, Executive Director of the Microinsurance Network (MIN)

In Tanga City, Tanzania, an innovative project is transforming waste management and uplifting the livelihoods of informal waste pickers. Globally, these workers constitute 0.5%–2% of the urban population and recover up to 60% of all plastic waste, according to the Centre for Science and Environment. Despite their crucial role, the FinScope Tanzania 2023 report revealed that insurance coverage for informal workers, including waste pickers, is only 15%, with health insurance being the main driver.

In response, the UNDP Accelerator Lab, in partnership with the Taka ni Ajira Foundation, launched the Waste Banks initiative. This project not only collects daily waste data from pickers but also creates a credit score matrix based on this data. One key goal is the development of TakaBima, a bespoke microinsurance product for informal waste pickers, in collaboration with Jubilee Insurance Tanzania. This initiative leverages technology to drive sustainable development and social equity.

The Growing Waste Management Crisis 

Waste generation is a significant global challenge. As of 2023, the world produces approximately 2.1 billion tonnes of municipal solid waste annually, a figure expected to rise to 3.8 billion tonnes by 2050. This increase is driven by rapid urbanization and population growth, particularly in developing regions where waste management systems are often inadequate. In Tanzania, major urban centers like Dar es Salaam produce over 4,600 tons of waste daily, while Tanga generates around 300 to 400 tonnes. However, only 40% of this waste is properly collected and managed, leading to severe environmental and health issues. The Tanga City Waste Banks initiative seeks to address these challenges by improving waste management techniques and providing economic opportunities and social protection to those in the waste management value chain, particularly informal waste pickers.

Empowering Informal Waste Pickers 

In Tanga City (our pilot), formal waste collection is primarily managed by municipal authorities and private contractors. However, their services often don't reach all areas, particularly in outer wards. Informal waste pickers fill this gap by collecting, sorting, and selling recyclable materials. Despite their vital role, they face challenging conditions, lacking support and recognition, and often dealing with health risks and social stigma.

To address these challenges, the UNDP Accelerator Lab and the Taka ni Ajira Foundation have been collaborating since 2022. The Accelerator Lab uses collective intelligence and innovative technologies to tackle development challenges, while the Taka ni Ajira Foundation focuses on community empowerment and sustainable waste management solutions. This partnership is key to advancing the Waste Banks initiative.

This relationship is critical in moving the Waste Banks initiative forward. "We believe that by combining our expertise and engaging the community, we can create a sustainable model that not only manages waste efficiently but also provides economic benefits," Tanga City's Director, Dr. Frederick Sagamiko

Innovative Solutions with TakaBima

The Waste Banks are based on the principle of utilizing waste as a valuable resource. These facilities serve as collection points where waste is sorted and recycled. The initiative includes establishing collection centers, providing protective gear to waste pickers, and using mobile apps and GIS technology to track waste collection data. Waste pickers deliver their waste to these banks, where it is weighed and recorded. In return, they receive financial compensation, and the data is used to establish creditworthiness, forming the basis for TakaBima.

TakaBima, developed with Jubilee Insurance Tanzania, is a microinsurance product designed specifically for informal waste pickers. It offers coverage for medical emergencies, accidents, and income loss in exchange for affordable monthly premiums. As waste pickers generate more waste, they accumulate credit towards their insurance premiums, making it an accessible safety net.