Cooperatives expand role, impact nationwide
DAR ES SALAAM: THE country’s cooperative societies have strengthened their economic footprint, with SACCOS building substantial capital, increasing member savings and growing their asset base significantly across the country.
This comes as the country joins the global community in celebrating the International Day of Cooperatives (IDC) on Saturday with the theme “Cooperatives Build a Better World for All” emphasising their contribution toward achieving the UN Sustainable Development Goals (SDGs) by 2030.
The Chairperson of the Tanzania Federation of Cooperatives (TFC), Tito Haule, said Tanzania’s cooperatives have emerged as a powerful force in economic empowerment.
“For example, a single farmer within a cooperative can employ between 10 to 20 workers per season,” said Mr Haule, over the weekend.
ALSO READ: IMF approves 1.2tri/- for TZ via ECF, RSF
Mr Haule explained that this demonstrates that cooperatives are not just about members, but also about expanding job opportunities for surrounding communities.
This year’s celebration carries added significance as the United Nations has officially declared 2025 as the International Year of Cooperatives, a milestone last observed in 2012. Moreover, he said Savings and Credit Cooperative Societies (SACCOS) across the country now collectively hold over 500bn/- in capital.
Cooperatives have also mobilised savings amounting to 581.5bn/-, with total assets valued at over 914.6bn/-.
Mr Haule said over the past three years (2022– 2024), cooperatives in Tanzania have contributed more than 800m/- in social assistance to various institutions, including hospitals, orphanages, schools and elder care centres.
TFC Chief Executive Officer Phares Muganda said the cooperative movement in the country also plays a growing role in industrialisation, owning and operating 452 small and medium-sized processing industries that add value to agricultural products.
“These organisations operate on the principle of people over profit,” said Mr Muganda. “It’s not just about making money. It’s about making lives better.” These ventures not only increase productivity but also contribute significantly to tax revenues through employee income taxes and business levies.
With a renewed focus on inclusion, the cooperatives have created employment for over 156,555 youth in various contractual roles. Membership has grown from 6.9 million in 2021/22 to nearly 10 million in this year, reflecting increasing public trust and engagement.
In a historic milestone, Mr Muganda said the country’s cooperative sector has successfully launched a Cooperative Bank Tanzania, now operational with four branches and over 55bn/- in capital.
Further, he said cooperatives have issued development and social loans amounting to over 1.27tri/- , directly contributing to poverty reduction and economic resilience across communities. “Cooperatives are not ordinary businesses,” said Mr Muganda.
