Africa-Press – Tanzania. PRESIDENT Samia Suluhu Hassan inaugurated the Cooperative Bank Tanzania (CBT) in Dodoma yesterday, marking a significant milestone in the efforts to bolster cooperative societies and transform agricultural financing in the country.
She hailed the cooperative-based financial institution as a vital instrument in tackling the persistent financing challenges faced by underserved communities, particularly the nation’s small-scale farmers.
President Samia cited an African Development Bank (AfDB) report, revealing that a mere five percent of funds channelled into the banking sector currently reach agriculture.
She expressed confidence that CBT would help reverse this trend and support ongoing agricultural reforms in a sector that currently contributes 26 per cent to the national Gross Domestic Product (GDP).
“Tanzania has fulfilled the Malabo Declaration by allocating 10 per cent of its national income to agriculture and we expect to go beyond that. However, capital investment in the sector remains low. This bank is here to help close that financing gap by supporting farmers and the agriculture sector at large,” President Samia explained.
She stressed that although CBT is designed to support cooperatives, it must operate like any other financial institution and comply with the regulations of the Bank of Tanzania (BoT).
Doing so, she said, would ensure the bank’s sustainability and long-term impact.
Reflecting on the cooperative sector’s challenges over the past 20 to 30 years, President Samia acknowledged the loss of public trust due to mismanagement and embezzlement.
However, she praised recent reforms that have restored confidence and laid the groundwork for revitalising the sector.
“I encourage the bank’s leadership to be innovative in developing products that attract more customers,” she said.
“I’ve heard of the special health insurance scheme already introduced, but you should also consider linking farmers to pension schemes, so they can save for retirement once they stop farming.”
On market access, the president urged cooperatives to invest in agro-processing, to add value to agricultural produce and meet international standards.
She noted new opportunities in global markets for crops like white maize, avocados and cassava, but noted that Tanzania is not producing enough to meet demand.
“The Ministry of Agriculture must continue monitoring cooperatives to ensure stakeholders benefit from improved financial services and contribute meaningfully to the growth of the agricultural sector,” she directed.
Earlier, Minister for Agriculture Hussein Bashe called for the development of an agricultural financing policy that prioritises support for smallholder farmers.
He thanked President Samia for making CBT a reality, noting that it is the first cooperativebased bank to be established in over 40 years.
“CBT will focus on providing short-term loans to farmers, while the Tanzania Agricultural Development Bank (TADB) will continue handling long-term infrastructure financing,” he explained.
On his side ruling party CCM Vice-Chairperson Mr Stephen Wassira described the launch of CBT as a fulfilment of the party’s election manifesto and a major step toward liberating Tanzanians from poverty.
He emphasised the power of collective action—central to the cooperative movement and the country’s liberation history.
Cooperative Bank Tanzania CEO Godfrey Ng’urah called the launch a “dream come true,” noting that the bank is poised to boost key sectors, including agriculture and manufacturing.
He revealed that CBT enters the competitive banking landscape with a capital base of 58bn/-.
He elaborated on the bank’s ownership structure, whereby 51 per cent is held by cooperative societies, 10 per cent by the government and the remaining 39 per cent by other stakeholders.
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