Cooperatives decry return of middlemen, seek govt intervention

DODOMA: THE Tanzania Federation of Cooperatives (TFC) has urged the government to review the operations of commodity boards, accusing some of them of licensing middlemen in areas where cooperative societies are already legally mandated to market members’ produce.

The federation said the practice has weakened cooperative societies, reduced farmers’ earnings and undermined the government’s efforts to strengthen the cooperative movement.

Presenting the cooperative movement’s position during the climax of the 2026 International Day of Cooperatives celebrations in Dodoma on Monday, TFC Chairperson Tito Haule said some commodity boards have departed from the original objective of supporting cooperatives.

“Although the government established these boards with good intentions, some have become a burden to cooperative societies by introducing middlemen into marketing systems that were designed to eliminate them,” Mr Haule said.

He said the cooperative movement was established to enable farmers to collectively market their produce, eliminate exploitative intermediaries and strengthen their bargaining power.

“The cooperative system has historically served as a vehicle for collecting and marketing members’ produce under one strong institution, making Tanzania one of Africa’s strongest cooperative economies during the early years of independence,” he said.

Mr Haule said some boards continue collecting substantial levies from produce marketed through cooperative societies without providing corresponding services, thereby reducing farmers’ incomes and weakening the financial position of cooperatives.

He singled out the Cereals and Other Produce Regulatory Authority (COPRA),saying cooperative members consider the board a major obstacle due to the 30/- per kilogramme levy imposed on produce marketed through cooperative societies while at the same time licensing private brokers to undertake functions traditionally performed by cooperatives.

“We believe this board has become a source of exploitation because it collects levies from cooperative societies and then uses the same system to introduce brokers who weaken the cooperatives,” he said.

Mr Haule called on the government to conduct a comprehensive review of the operations of commodity boards, particularly COPRA, to ensure cooperative societies remain the principal institutions responsible for collecting and marketing members’ produce while enabling the government to collect legitimate taxes and levies.

He also appealed for a review of statutory levies to protect farmers’ incomes and improve the competitiveness of cooperative societies.

The federation further expressed concern over the lack of reliable markets for strategic crops, including coffee, cashew nuts, cotton, tea and tobacco, saying fluctuating international prices continue to discourage production and affect farmers’ earnings.

Mr Haule also raised concern over the two per cent deduction imposed on funds remitted to government-based Savings and Credit Cooperative Societies (SACCOS) through the Treasury system.

He said the deductions are applied to members’ savings, shares, deposits and loan repayments, significantly reducing the financial capacity of SACCOS to serve their members.

“These funds belong to members and, in many cases, have already been subjected to statutory deductions. Charging an additional two per cent weakens cooperative financial institutions,” he said.

Mr Haule further appealed to the government to address persistent delays by some employers, particularly local government authorities, in remitting members’ deductions to SACCOS.

He said the delays deny SACCOS the liquidity needed to provide loans and other financial services to members despite legal requirements obligating employers to remit the funds promptly.

ALSO READ:TCDC, PCCB join forces to tackle corruption in cooperatives

“We urge the government to intervene and ensure employers comply with the law so that SACCOS can continue serving their members effectively,” he said.

Tanzania Cooperative Development Commission (TCDC) Registrar and Chief Executive Officer, Dr Benson Ndiege, said the commission will intensify implementation of the “Protect Cooperatives, Choose Integrity” campaign during the 2026/27 financial year to strengthen accountability and restore public confidence in the cooperative sector.