‘Ghala Pesa’ set to boost agricultural finance in Tanzania

DODOMA: COOPERATIVE Bank Tanzania (CBT) is rapidly emerging as a driving force behind the modernisation of agricultural financing in the country.

Through innovative and inclusive banking solutions like Ghala Pesa, the bank is transforming how farmers manage their produce, access credit and engage with markets. Ghala Pesa, a newly announced financing product, is set to revolutionise rural lending by enabling farmers to use stored crops as collateral for loans.

Traditionally, many farmers have been forced to sell their harvests immediately after harvest—often at low prices—due to urgent cash needs.

With Ghala Pesa, they can now store their crops in regulated warehouses and receive warehouse receipts, which they can present at CBT to secure immediate financing.

“This initiative would help farmers access working capital while waiting for auctions or buyers,” said CBT’s Managing Director, Mr Godfrey Ng’urah: “These warehouses issue warehouse receipts, which are regulated by the Warehouse Receipts Regulatory Board (WRRB). While waiting for the right market, farmers can access financing through us.” The ability to delay sales until favourable market conditions arise can significantly increase farmer incomes and reduce financial stress.

It also fosters a more structured commodity marketing system, encouraging long-term planning and better post-harvest handling. To complement this financing innovation, CBT has also rolled out Coop Pesa, a mobilebased platform that allows farmers to access banking services from their handsets.

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“Farmers can now transact from their handsets, easing payment processing and access to services,” said Mr Ng’urah.

With mobile banking rapidly expanding across rural Tanzania, Coop Pesa offers farmers a simple, secure and cost-effective way to manage their finances remotely.

During the Nanenane Agricultural Exhibition, CBT introduced another digital service, CoopNet, which enhances internet banking for cooperative societies. The platform enables cooperatives to process farmer payments more efficiently.

“For instance, in crops such as sesame and pigeon peas—and soon cashew—we have facilitated over 150bn/- in payments to farmers across Songwe, Songea, Mtwara and Lindi during the ongoing harvest seasons,” said Mr Ng’urah.

By digitalising financial flows within cooperatives, CBT is not only improving efficiency but also enhancing transparency and trust among members.

“Through this digital integration, cooperative leaders and accountants can now disburse payments directly from central accounts to individual cooperative accounts, boosting transparency and efficiency,” he said.

CBT is also expanding its physical reach through a robust agent banking network. The bank plans to launch a new agent banking service to further extend its presence in underserved areas.

“Our services are accessible even beyond our branches. Through these agents, farmers and entrepreneurs can open accounts, deposit, withdraw and make transactions conveniently,” said Mr Ng’urah.

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With more than 30,000 agents—many affiliated with cooperative societies—CBT is strengthening financial inclusion in rural communities. In partnership with the Ministry of Agriculture, CBT has also introduced specialised financial products for youth, agribusiness actors and entrepreneurs.

These offerings support government-led programmes like Building a Better Tomorrow (BBT), which aims to encourage young graduates to view agriculture as a viable and rewarding career.

“We recognise that the future of agriculture lies in building a better tomorrow through initiatives such as Building a Better Tomorrow (BBT) and we are seeing more graduates entering agriculture as a career,” said Mr Ng’urah.

Since its establishment, CBT has recorded impressive growth. The bank’s loan portfolio has more than doubled from 15bn/- to 32bn/-, with over 70 per cent of that credit directed toward the agriculture sector.

This targeted investment in farming communities is helping to boost productivity, strengthen value chains and support rural development.

On the deposit side, CBT has seen a remarkable increase from 14bn/- to 52bn/- within just three months, while total assets rose from 43bn/- to 67bn/- over the same period.

These figures underscore the trust that customers, especially farmers and cooperatives, have placed in the institution. Looking forward, CBT remains committed to driving inclusive economic growth through financial innovation tailored to the unique needs of Tanzania’s agricultural sector.

We continue to provide a wide range of financial services including loans to youth, entrepreneurs, traders, salaried workers and individuals under our personal loan schemes,” said Mr Ng’urah.

With a strong foundation in cooperative principles, advanced digital infrastructure and a deep understanding of rural economies, Cooperative Bank Tanzania is well-positioned to play a pivotal role in shaping a more prosperous future for the country’s farmers and agribusinesses.