Bank delivers 15 trucks to cooperatives to boost agric value chain

KAHAMA: Two agricultural cooperative unions yesterday received 15 trucks financed through a low-interest loan facility from the National Bank of Commerce (NBC), a move expected to improve crop collection, reduce transport costs and strengthen market access for farmers.

The fleet includes 10 trucks for Kahama Cooperative Union (KACU) and five for Tandahimba and Newala Cooperative Union (TANECU). The vehicles will support crop transportation, agricultural input distribution and other logistics operations, addressing a key challenge facing cooperatives in moving produce from farms to markets.

The handover at the 2026 Nanenane Agricultural Exhibition at the Dr John Malecela Grounds in Dodoma, was attended by the Registrar of Cooperative Societies, Dr Benson Ndiege, officials from the two unions, farmers and NBC executives.

NBC Head of Retail and Agribusiness Banking Raymond Urassa said the financing was part of efforts to provide affordable financial solutions that support agricultural productivity and competitiveness.

“Agriculture remains at the heart of Tanzania’s economy, and NBC is committed to providing financial solutions that enable farmers and cooperatives to become more productive and competitive,” he said. “These trucks will improve the movement of produce from farms to markets, reduce transportation costs and strengthen the agricultural value chain.”

Urassa said the bank would continue working with cooperative unions and other stakeholders to develop financial products that expand commercial opportunities and support agricultural growth.

Tanzania Cooperative Development Commission Registrar and Chief Executive Officer, Dr Benson Ndiege said improved transport capacity would strengthen cooperatives’ ability to operate as commercial enterprises.

“Today’s cooperatives are increasingly operating as commercial enterprises,” Dr Ndiege said. “These trucks will not only solve transportation challenges but will also strengthen the business capacity and revenue-generating potential of the cooperative unions.”

He added that access to long-term financing, crop insurance, housing finance and digital banking services would continue to support farmers and cooperatives.

TANECU Board Chairman Karim Chipola said the union’s five trucks were financed through an NBC loan approved in November last year, with repayments beginning in February.

“We have already started servicing the loan and remain on schedule,” he said. “The trucks have significantly improved our ability to collect and transport members’ produce efficiently.”

Chipola said NBC had also financed the construction of two warehouses for the union, with plans to establish six additional storage facilities across Mtwara Region to improve post-harvest management.

KACU Vice Chairman Simon Ntemi Nzengo said the union received 10 HOWO trucks valued at more than 2.1 billion shillings. The trucks will support cotton and tobacco collection, crop transportation, agricultural input distribution and operations at the union’s cotton ginning plant.

“We are committed to managing these assets professionally to ensure they generate sustainable commercial returns for our members,” Nzengo said.

The investment highlights the growing role of asset-based financing in strengthening agricultural value chains by enabling cooperative unions to expand operations, improve efficiency and increase their commercial capacity.