Coop Bank set to revolutionise sector
DODOMA: A NEW chapter unfolds in Dodoma today with the launch of the Cooperative Bank of Tanzania, an institution set to spearhead financial inclusion and economic empowerment for cooperatives across the nation.
This pivotal development promises to significantly boost access to financial services and strengthen the cooperative movement nationwide.
The Chairman of the Tanzania Commission for Development of Cooperatives (TCDC), Abdulmajid Nsekela, assured Prime Minister Kassim Majaliwa yesterday, ahead of today’s launch that the creation of CBT marks a significant step forward in enhancing financial services and development opportunities for cooperatives.
“The Cooperative Bank of Tanzania will act as a catalyst for economic transformation,” said Mr Nsekela, who also serves as the Group CEO and Managing Director of CRDB Bank.
“With CBT, we are establishing an institution that will deliver affordable, accessible and inclusive financial services to the cooperative sector, enabling members to thrive and expand their businesses.”
Mr Nsekela said that the new bank aims to drive economic empowerment for farmers, herders, fishers and small-scale entrepreneurs across the country.
Prime Minister Majaliwa hailed the initiative as a crucial milestone in the government’s broader efforts to empower cooperative societies and expand financial access, especially for Tanzanians in rural areas.
“The government is committed to supporting this initiative, which will play a key role in boosting economic growth and reducing poverty,” Mr Majaliwa told the forum.
Minister for Agriculture Hussein Bashe also praised the move, underscoring the vital role of cooperatives in improving the livelihoods of farmers and rural communities.
“The formation of CBT is both timely and significant. It will not only enhance access to financial services but also promote agricultural growth, particularly in rural areas where the cooperative model has traditionally been strong.
“By providing loans for agricultural inputs and strengthening value chains, this bank will contribute substantially to the development of the agricultural economy,” Minister Bashe said.
The launch of CBT follows the successful merger of two prominent cooperative banks — the Kilimanjaro Cooperative Bank (KCBL) and the Tandahimba Cooperative Bank (TACOBA).
Both institutions faced challenges in the past, but with support from the government and key stakeholders, including CRDB Bank, they were revived and merged into a stronger, more efficient institution: CBT.
CRDB Bank, holding a 20 per cent stake in CBT, has played a pivotal role in its establishment, contributing to its capitalisation and providing technical expertise, management support and advanced banking systems to ensure the bank’s success.
Previously, CRDB invested heavily in stabilising KCBL and TACOBA, injecting 3.2bn/- into TACOBA in 2018 and 7.0bn/- into KCBL in 2020. These investments strengthened their financial positions and governance structures, setting the stage for the successful merger.
CRDB’s involvement in the cooperative sector is deeply rooted in its history, having been originally established as a rural cooperative bank. The bank continues to champion the development of cooperatives nationwide.
