MWE Correspondent
Deputy Prime Minister Dr. Dotto Biteko has lauded the transformative progress of Tanzania’s cooperative sector, calling it a key driver of economic growth and rural empowerment.
His remarks came during the country’s celebration of the International Day of Cooperatives, held this year in Dodoma.
Dr. Biteko noted a positive shift in the sector’s reputation, highlighting the substantial increase in cooperatives achieving clean audit reports, which rose from 339 in the 2021/22 financial year to 631 in 2023/24 — an outstanding 86 percent jump, signaling improved governance and transparency.
The Deputy Prime Minister also praised the launch of the Cooperative Bank of Tanzania, capitalized with over TSh 55 billion and operating four branches across the country. The bank aims to provide affordable credit facilities especially to cooperative members such as smallholder farmers and rural entrepreneurs who often face limited access to finance.
At the event, Minister of Agriculture Hussein Bashe emphasized the critical need for a dedicated Agricultural Finance Policy, which would enable farmers to secure loans against the value of their produce. This would reduce dependence on informal and expensive credit, thereby lowering production costs and enhancing agricultural productivity.
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Bashe highlighted that synchronizing financing with the agricultural cycle is vital for sustained growth and food security across Tanzania.
The cooperative movement plays an essential role in Tanzania’s economy, particularly in rural communities reliant on agriculture, which accounts for roughly 26 percent of the country’s GDP. Dr. Biteko revealed that cooperative membership surged from 6.9 million in 2021/22 to 10 million in 2023/24, a growth that has boosted production volumes and export earnings.
In the last financial year, 1,084 cooperatives exported agricultural commodities valued at around US $344.8 million, including coffee and tobacco — up from $325.5 million the previous year.
Government bodies such as the Tanzania Cooperative Development Commission and the Tanzania Federation of Cooperatives have been instrumental in promoting reforms aimed at better governance, value addition, and improved market access for cooperative products.
Despite this progress, Dr. Biteko called for increased support for women in cooperatives, noting only about 50 registered cooperatives are led by women. He encouraged targeted efforts to expand their participation and leadership roles.
He also urged government ministries to resolve ongoing challenges including fair crop pricing, access to quality agricultural inputs, and better compensation mechanisms to ensure farmers receive just returns for their labor.
The Deputy Prime Minister reaffirmed that cooperatives remain a vital pillar for advancing rural development and inclusive economic growth in Tanzania.
