DAR ES SALAAM: THE Savings and Credit Cooperative Union League of Tanzania (SCCULT) is in the process of integrating the Agricultural Marketing Cooperatives Society (AMCOS) into the Savings and Credit Cooperative Societies (Saccos) to facilitate framers’ access to loans.
This was revealed on Friday during the signing of a Memorandum of Understanding (MoU) between the German Sparkassenstiftung International Cooperation (DSIK) and SCCULT.
Speaking shortly after the signing ceremony, the DSIK CountryDirector, Mr Stephen Safe said the target is to have integrated a majority of AMCOS into Saccos by 2025.
“We expect to have an integrated farmers union with 140 AMCOS by December this year that will enable farmers to access loans and pay them when they sell their crops.
” We introduce AMCOS into Saccos to enable farmers to access loans, as currently farmers are forced to sell their crops while still at the farm at very low prices in order to get money to meet their needs, thereby not benefiting from their efforts,” said Mr Safe.
However, he noted that the integrated module will enable farmers to access loans easier, either during planting seasons or after.
In another development, Mr Safe said the MoU aimed to empower communities and organisations, such as SACCOS and AMCOS, within the cooperative sector with the essential skills and knowledge needed to succeed in today’s rapidly changing business environment.
He said the agreement represents a significant advancement in capacity building for the microfinance sector.
Mr Safe said the MoU focuses on the enhancement of the training fund, where DSIK will provide financial support of 330m/- and technical expertise to SCCULT for training initiatives on topics such as digitalisation, accounting, governance and credit management.
“The main goal of this partnership is to enhance capacity and promote the growth of the cooperative sector in the country.
” We firmly believe that by offering training to MFIs and SCCULT members we can make a significant impact on the cooperative sector,” Mr Safe said.
For his part, SCCULT, Chief Executive Officer (CEO) Mr Assani Mnyone said they have seven million members scattered countrywide, but for now they targeting five regions, including Dar es Salaam, Morogoro, Arusha, Kilimanjaro and Mbeyato build their capacities.
“A majority of Saccos lack skills to manage themselves, especially on issues of accounting,'” Mr Mnyone said.
For his part hispary the DSIK Project Manager for Africa, Oliver Schuater said they have provided 330m/- to upgrade the capacities of Saccos in the country.
According to him, the study commenced in January 2023 and ended in September 2024.