In a move aimed at improving transparency, accountability, and governance within Tanzania's cooperative societies, Prime Minister Kassim Majaliwa has directed the Ministry of Agriculture to enhance monitoring of cooperative executives.
He stressed that cooperative officials must adhere to high standards of service ethics, transparency, and sound governance, emphasizing that such practices would attract both members and investors to the sector.
The premier's call came during the launch of the Development Finance Access Dialogue for Cooperatives in Dodoma on Sunday, April 27, 2025.
In his address, the Prime Minister urged the Ministry of Agriculture and the Cooperative Development Commission to expedite the implementation of strategies, especially in agricultural technology, input procurement, and market access for crops.
"The Ministry must ensure that all plans are effectively executed, especially in areas such as agricultural technology, input access, and markets for agricultural products," Majaliwa remarked.
The Prime Minister further encouraged financial institutions, including banks and development funds, to continue collaborating closely with cooperative societies to establish systems that facilitate easy access to credit and capital for smallholder farmers and entrepreneurs.
Majaliwa's address highlighted the importance of joining registered cooperatives, ensuring that citizens could take full advantage of the opportunities provided by the government and development partners. He reiterated that all stakeholders must collaborate with the government in contributing resources, expertise, and innovation to develop this vital sector.
"The cooperative sector is strengthening rapidly and is a critical pillar for economic and social development in various regions," Majaliwa noted, pointing out that Tanzania currently boasts over 7,000 registered cooperatives with more than eight million members across diverse economic sectors, including agriculture, fisheries, mining, trade, and financial services.
The Prime Minister acknowledged the significant steps taken by President Samia Suluhu Hassan's administration to bring reforms to the cooperative sector.
These reforms include improving management systems for cooperatives, enhancing access to markets through warehouse receipt systems, and establishing the Cooperative Bank (COOP Bank) to provide much-needed financial services to members.
"Giving cooperative officers the tools they need to perform their duties efficiently, improving input access for farmers through cooperatives, and strengthening financial services are vital steps in transforming the sector," Majaliwa said.
During the event, Majaliwa also officially launched the Large-Scale Farming Project, jointly funded by the African Development Bank (AfDB) and the Tanzanian government.
This initiative is part of the broader BBT Program, with a total project cost of $241.27 million. AfDB will contribute $129.71 million, covering 53.76% of the total cost, while the Tanzanian government will provide the remaining 46.24%.
Agriculture Minister Hussein Bashe emphasized that cooperatives are crucial in building resilience among members, with the establishment of the Cooperative Bank set to ease payment processes for farmers. The bank, with a capital of over 50 billion Tanzanian shillings, will have more than 50 agents across the country.
Meanwhile, Coop Bank Board Chairman Prof. Gervas Machimu expressed confidence that the bank would become a key pillar for both urban and rural cooperative development, reviving the dignity of cooperatives and stimulating the local economy.
Abdulmajid Nsekela, Chairman of the Commission Board of the Cooperative Societies Commission, also shared that the bank would operate in a modern and competitive manner, offering cooperative services that deliver tangible benefits for its members.