Africa-Press – Tanzania. ZANZIBAR President, Dr Hussein Mwinyi has called for urgent reforms in the cooperative sector to empower citizens and promote sustainable economic growth.
President Mwinyi also applauded the role of cooperatives in transforming communities by promoting social unity, economic equality and grassroots development.
President Mwinyi’s speech was read on his behalf by the Zanzibar Second Vice-President, Hemed Suleiman Abdulla during the climax of the 2025 International Day of Cooperatives in the isles.
Under this year’s global theme, ‘Cooperatives Build a Better World’, he said it reflected the true potential of the movement to address unemployment, poverty and inequality in the country.
“With strong, transparent and well-managed cooperative societies, Zanzibar can achieve its development goals and build a more inclusive economy,” he said.
He said that Zanzibar’s natural endowments, including marine and tourism resources, require coordinated cooperative action to ensure long-term benefits for citizens.
He cited the integration of 383 production cooperatives into SACCOS (Savings and Credit Cooperative Societies) as a major stride. He said 78 active SACCOS have reached a combined capital of 21.8bn/- and issued over 32.2bn/- in loans to 12,260 members.
“This is a strong indicator that cooperatives can serve as effective financial platforms to empower people,” he explained.
He lauded the existing partnerships between the government and the private sector in boosting infrastructure, health, education and environmental conservation.
However, he acknowledged challenges, including limited public awareness about cooperative principles, weak digital systems, inadequate data and low youth engagement.
The President also called on other SACCOS to improve their performance, calling for reforms to the existing laws and policies to strengthen the sector.
The government, in collaboration with Moshi Cooperative University (MoCU), has conducted a comprehensive study to evaluate the state of Zanzibar’s cooperative sector.
The findings highlighted the need for reviewing cooperative laws and policies, including the 2014 Cooperative Development Policy and 2018 Cooperative Societies Act.
The findings highlight the need to establish a digital system for cooperative registration and monitoring, create a dedicated cooperative audit body, increase youth involvement and redefine cooperatives as economic drivers rather than just social groups.
Dr Mwinyi instructed the Office of the President (Labour, Economy and Investment) to fast-track the implementation of the study’s recommendations, working closely with the Zanzibar Cooperative Union (CUZA) and other stakeholders.
“We must stop shelving good research and strategies. Let us implement real reforms that respond to cooperative members’ needs and advance our digital economy,” he stressed.
He also revealed ongoing discussions to open Tanzania Cooperative Bank branch in Zanzibar, which will provide interest-free loans to cooperative groups.
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