Tanzania’s Mundindi Village Makes History with Free Health Insurance for All Residents

By Adonis Byemelwa

In a remarkable turn of events, 3,149 residents of Mundindi village in Ludewa District, Njombe region, have made history. The village government has provided health insurance for all its residents, ensuring access to healthcare without financial barriers.

This initiative was made possible after the government compensated the village with Sh15 billion for the Liganga and Mchuchuma projects. Mundindi received Sh464 million as part of this compensation. Out of this amount, the village allocated Sh400 million to purchase bonds from a local financial institution.

Yesterday, July 12, 2024, Mundindi Village Chairman Sapi Mlelwa announced during a ceremony where the health insurance cards were distributed to the villagers. He stated that the Sh400 million investment in bonds would generate an annual dividend of Sh41 million for the next five years, benefiting the village's 524 households. The first dividend payment of Sh12.9 million was used to provide health insurance for the residents.

“The village government, in collaboration with our Ward Councilor Wise Mgina and leaders at all levels, recognized the need for residents to directly benefit from these funds by obtaining health insurance. Many of our residents struggle to afford medical expenses,” said Mlelwa.

Njombe Regional Commissioner Anthony Mtaka praised the village as a model for the entire nation, highlighting the innovative approach taken by its leaders to safeguard the health of their people.

He instructed Ludewa District Chief Medical Officer Stanley Mlay to ensure the local health center remains well-stocked with necessary medications, so residents receive appropriate treatment for their ailments.

"Chief Medical Officer, these funds are substantial and sufficient to purchase all types of medications. I do not expect to hear that residents are only receiving paracetamol instead of the specific drugs needed for their conditions," said Mtaka.

Ludewa District Commissioner Victoria Mwanziva suggested that future funds be invested in vocational education for the youth, preparing them for employment opportunities in the major Liganga and Mchuchuma projects once they commence, as well as enabling them to become self-employed.

Ludewa MP Joseph Kamonga expressed pride in the benefits derived from the compensation he fought for, ensuring the government paid the residents. "I have no concerns about service delivery in this ward now that you have a well-equipped health center and an ambulance," Kamonga said.

Councilor Wise Mgina emphasized that the strategic plan includes providing vocational training for disadvantaged children and orphans, aiming to uplift them through short courses in technical colleges.

Rita Mgeni, a resident of Mundindi village, expressed her gratitude to the government for the compensation that enabled every villager to obtain health insurance.

To uplift rural communities, various strategies from India and Bangladesh could be adapted and implemented in Tanzanian villages like Mundindi.

Microfinance institutions like Bangladesh's Grameen Bank have empowered millions by providing small loans without collateral, enabling individuals to start small businesses and achieve financial independence.  "Implementing similar microfinance schemes in Tanzania could foster entrepreneurship and economic growth," Msangi suggests.

India's Self-Help Groups (SHGs) have played a crucial role in rural development. These groups, primarily composed of women, pool their savings to provide loans for income-generating activities, promoting social cohesion and collective decision-making. "Establishing SHGs in rural Tanzania can enhance community participation and economic stability," Dr. Rwekaza asserts.

Both India and Bangladesh have invested in skill development initiatives to equip rural youth with vocational training. Programs like India's Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have successfully trained millions, improving their employability.

 "Similar training programs in Tanzania can help bridge the skills gap and provide rural youth with better job opportunities," Msangi emphasizes.

Digital literacy and access to technology have transformed rural economies in India. Initiatives like Digital India aim to provide internet connectivity and digital services to remote areas.

Promoting digital literacy in Tanzanian villages can facilitate access to information, e-commerce, and online education, driving socio-economic development.

Collaborations between government and private sector entities have also led to infrastructure development in rural areas.

For instance, PPPs in India's rural roads and electrification projects have significantly improved connectivity and living standards. "Encouraging PPPs in Tanzania can lead to better infrastructure, enhancing overall rural development," says Dr. Rwekaza.

Accelerating socio-economic progress in Tanzania's rural communities, such as Mundindi village, hinges on leveraging three key laws mandating responsible plans, particularly in the extractive industry.

Encompassed within these statutes— the Mining Act of 2010 Cap 123 [R. E 2019], the Petroleum Act No. 21 of 2015, and the Tanzania Extractive Industries (Transparency and Accountability) Act No. 23 of 2015— lies the framework for implementing Corporate Social Responsibility (CSR) initiatives.

Defined as industries dealing in natural resources, the extractive sector holds significant potential for driving sustainable development.  However, it's notable that beyond this realm, there's currently no legal provision recognizing CSR plans across other economic sectors.

By amplifying the impact of these existing laws and expanding CSR frameworks to encompass diverse industries, Tanzania can forge a path towards holistic and inclusive development, fostering improved livelihoods for all its citizens, including those in Mundindi village.