Enhanced co-op sector collects 4.2tri/- agri produce

DODOMA: TANZANIA’S cooperative system has significantly improved over the past four years, with cooperative societies managing to collect a total of 2.23 million tonnes of agricultural produce worth 4.2tri/- as of February 2025.

A report by the Tanzania Cooperative Development Commission (TCDC) detailing the sector’s achievements under President Samia Suluhu Hassan’s leadership reveals that the co-ops’ capacity has quadrupled since the 2021/2022 financial year, when they collected just 591,268.122 tonnes valued at 1.1tri/-.

“The increase in sales through these formal cooperative systems has led to a rise in both the volume of produce sold and the prices of crops,” the report says.

The report, made available to the Daily News in Dodoma, also shows that levy collections by Local Government Authorities (LGAs) surged from 33.7bn/- in 2021/2022 to 64.1bn/- in the 2023/2024 financial year.

It attributes the sector’s strengthened image to the remarkable achievements gained from implementing priority reforms.

“The publicly announced successes of the cooperative movement include the establishment of the Cooperative Bank, the launch of the Digital Cooperative Management System (MUVU), the use of digital weighing scales for crop sales, transparency in produce auctions and increased crop prices, covering tobacco, cashew nuts, cotton, coffee, sesame, cocoa, sisal, tea, pigeon peas, soybeans, lentils and sugarcane,” the report notes.

These milestones have inspired more citizens to join cooperative societies to gain collective bargaining power in marketing their produce, thus boosting both individual and national economic growth.

During President Samia’s four-year tenure, the sector underwent legal reforms aimed at enhancing efficiency.

The commission amended the Cooperative Societies Act No 6 of 2013 and the amendments were presented before the National Assembly during its 18th meeting, second sitting, through the Written Laws (Miscellaneous Amendments) (No 3) Act, 2024.

The 17-page report also highlights the establishment of the Cooperative Bank of Tanzania (CBT) headquartered in Dodoma as a key success of the reforms.

The bank, 51 per cent owned by cooperative societies as majority investors, was formed through the merger of the former Kilimanjaro Cooperative Bank Ltd (KCBL) and Tandahimba Community Bank Ltd (TACOBA).

On Monday, President Samia officially launched the Co-operative Bank of Tanzania in Dodoma, marking a significant milestone in the efforts to bolster cooperative societies and transform agricultural financing in the country.

She hailed the cooperative-based financial institution as a vital instrument in tackling the persistent financing challenges faced by underserved communities, particularly the nation’s small-scale farmers.

President Samia cited an African Development Bank (AfDB) report, revealing that a mere five per cent of funds channelled into the banking sector currently reach agriculture.

She expressed confidence that CBT would help reverse this trend and support ongoing agricultural reforms in a sector that currently contributes 26 per cent to the national Gross Domestic Product (GDP).

The bank was registered on May 26th, last year, by the Registrar of Cooperative Societies and granted a banking license by the Governor of the Bank of Tanzania (BoT) on October 4th, last year.

“Tanzania has fulfilled the Malabo Declaration by allocating 10 per cent of its national income to agriculture and we expect to go beyond that. However, capital investment in the sector remains low. This bank is here to help close that financing gap by supporting farmers and the agriculture sector at large,” President Samia explained.

She stressed that although CBT is designed to support cooperatives, it must operate like any other financial institution and comply with the regulations of the Bank of Tanzania (BoT). Doing so, she said, would ensure the bank’s sustainability and long-term impact.

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CBT began operations with three branches in Dodoma, Kilimanjaro and Tandahimba—and has seen share investment rise from 15.7bn/- in 2022/2023 to 27.4 bn/- in 2024/2025. Shareholder capital strengthened to 22bn/- in 2024, up from 19bn/- in 2023.

Minister for Agriculture Hussein Bashe said CBT will focus on providing shortterm loans to farmers, while the Tanzania Agricultural Development Bank (TADB) will continue handling longterm infrastructure financing. “The establishment of this bank will enable cooperative societies to engage in business, access affordable loans and operate commercially. It will also help protect cooperative members, including farmers, from exploitation by financial institutions offering high-interest loans,” he said.