What You Need to Know
The Tanzanian government has mandated cooperative societies to increase their minimum shareholding in the Co-operative Bank from 5% to 10% by April 2026. This initiative aims to secure majority ownership and enhance the bank’s capital base. Minister Daniel Chongolo emphasized the importance of cooperative unity and investment to achieve this goal, highlighting the current ownership level of 46% as
Africa-Press – Tanzania. THE government has directed capital-strong cooperative societies to double their minimum share contribution in the Co-operative Bank of Tanzania from five per cent to 10 per cent by April 30, 2026, in a move aimed at securing majority ownership and strengthening the bank’s capital base.
Minister for Agriculture, Daniel Chongolo, issued the directive in Dodoma on Friday while closing the inaugural Annual General Meeting of Ushirika Joint Enterprise Limited (UJE), warning that failure to increase investment could weaken cooperative control of the bank.
“We must conduct our business with firm capital foundations. If we do not stand together and push to strengthen the Cooperative Bank, we will not achieve the 51 per cent ownership target,” he said.
Despite a government seed capital injection of 5bn/- and the registration of 1,450 cooperative societies under UJE, Mr Chongolo said cooperative ownership currently stands at 46 per cent, below the majority target.
He said the government’s financial support reflects confidence in cooperatives as key drivers of economic empowerment, particularly in agriculture.
Mr Chongolo also described the establishment of UJE as a sign of renewed commitment within the cooperative movement to strengthen unity, promote sustainable investment and improve resource management.
He urged more societies to join the platform to benefit from joint investment opportunities and long-term gains.
Tanzania Co-operative Development Commission (TCDC) Registrar and Chief Executive Officer, Benson Ndiege, said low member participation remains the main challenge in achieving majority ownership.
He said that although nearly 6,400 cooperatives are registered nationwide, only about 1,540 have joined UJE.
“This means more than half of our cooperatives have not purchased shares in our bank,” he said.
Dr Ndiege said UJE and the bank’s board face the task of tracing nearly 3,000 dormant or non-participating cooperatives to understand the reasons behind their low engagement.
He warned that even among participating societies, many have acquired only limited shares, slowing progress towards the 51 per cent ownership goal.
Co-operative Bank Chief Executive Officer, Mr Godfrey Ng’urah, said the formation of UJE marks the realisation of a long-standing vision within the cooperative movement.
“Three or five years ago, what we are witnessing today existed only as a vision in documents and minutes. UJE is the vehicle that now protects cooperative interests, the dream has materialised,” he said.
He added that the bank will use UJE as a strategic platform to serve cooperatives not only as investors but also as its core market, ensuring that products and services meet their needs.
Speaking on behalf of the Board Chairperson, Vice-Chairperson Lt Col CPA (T) Lucy Chacha said UJE will help strengthen investment discipline and improve access to ownership information.
She said that by February 2026, cooperative shareholding stood at 19bn/- against the required 29bn/-, leaving a 10bn/- gap reserved strictly for cooperatives.
“This remaining portion is strictly for cooperatives, although private sector investors are ready to purchase the shares if societies delay,” she warned.
UJE was established following a 2024 resolution by shareholders to coordinate and protect cooperative investments in the bank
The cooperative movement in Tanzania has been a significant aspect of the country’s economic development, particularly in agriculture. Established to empower farmers and promote collective investment, cooperatives have faced challenges such as low member participation and limited financial resources. The government’s recent push for increased investment in the Co-operative Bank reflects a broader strategy to strengthen this sector and enhance economic resilience among cooperative societies.
Historically, cooperatives have played a crucial role in providing financial services and support to their members. However, achieving majority ownership in financial institutions like the Co-operative
