Govt pushes for cooperative sector reforms
DODOMA: THE Deputy Permanent Secretary in the Ministry of Agriculture responsible for Cooperatives and Irrigation, Dr Stephen Nindi has called on the Cooperative Union Federation to establish robust systems that adhere to procedures and regulations in order to bring about positive changes in the cooperative sector in the country.
Dr Nindi said that the government was recognising the significant role of cooperative unions in fostering development and economically empowering marginalised groups, particularly small-scale producers, farmers, women and youth.
“Cooperative Unions play a crucial role in enabling these community members to withstand market competitions, which could be difficult if they were left to compete directly with private businesses,” he said during a working session in Dodoma with the Tanzania Cooperative Development Commission (TCDC), the Tanzania Federation of Cooperatives (TFC) and the Savings and Credit Cooperative Union League of Tanzania (SCCULT).
The event, coordinated by the Registrar of Cooperatives and TCDC Chief Executive Officer Dr Benson Ndeige, aimed to outline the government’s direction for cooperative development.
Dr Nindi emphasised the potential of cooperatives to drive economic growth by creating self-employment opportunities, especially for small-scale farmers and low-income individuals.
He noted that cooperatives enable people with limited resources to pool capital for investments in various economic activities, thereby owning production tools and businesses collectively.
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“Cooperatives also play a vital role in enabling citizens to participate in critical sectors of the national economy, such as industries and banking,” he said, adding that organisations like Savings and Credit Cooperative Societies (SACCOS) provide ordinary citizens with access to small-scale capital to run businesses and reduce poverty.
Dr Nindi called on participants to develop actionable strategies for strengthening institutions like SCCULT and TFC. “In the near future, both the government and citizens should witness the tangible benefits of your presence,” he urged.
Vice Chairperson of TCDC, Ms Irene Mlola, said that when the Commission took over the oversight of SCCULT and TFC, it encountered outdated management practices within the two institutions.
To address these issues, she said the commission prioritised reforms, including: investment in modern digital systems, strengthening the National Cooperative Bank and promoting a more business-oriented approach within cooperatives.
