Tanzania moves to address five challenges in cooperative sector growth

Participants at the Cooperative Stakeholders’ Conference currently underway in Dodoma City on Sunday, July 5, 2026. PHOTO| HABEL CHIDAWALI

Dodoma. The government has identified five major challenges hindering the growth and effectiveness of the country’s cooperative sector as it intensifies efforts to strengthen the industry.

The challenges include low awareness among cooperative members, limited capacity among some officials, low participation of youth and women, the impacts of climate change, and insufficient capital among cooperative societies.

The issues were outlined on Sunday, July 5, 2026, by Deputy Permanent Secretary in the Ministry of Agriculture, Prof Peter Msofe, while opening Cooperative Day celebrations in Dodoma.

Although International Cooperative Day was marked globally on Friday, July 3, 2026, Tanzania extended its celebrations, which are being held on July 5 and 6 under the theme “Cooperatives for a World of Peace.”

Prof Msofe said cooperatives remain a key pillar of the economy if properly managed through transparency and accountability, warning that weak governance undermines their effectiveness.

“It is important to strengthen good governance and accountability, and also increase the use of digital systems to enhance transparency because cooperatives are part of the private sector that we rely on for economic growth,” he said.

He directed that electoral systems within cooperative societies be strengthened to ensure only ethical leaders are elected, to build strong institutions capable of supporting a competitive economy.

He noted that the cooperative sector handles significant volumes of business, adding that recent transactions conducted through cooperatives reached Sh4.97 trillion, a figure he said reflects its importance to the economy.

Participants at the Cooperative Stakeholders’ Conference currently underway in Dodoma City on Sunday, July 5, 2026. PHOTO| HABEL CHIDAWALI

Registrar of Cooperative Societies and the Tanzania Cooperative Development Commission (TCDC) chief executive officer, Dr Benson Ndiege, said the sector has undergone major transformation, largely driven by increased adoption of technology.

Dr Ndiege said the goal is to build strong cooperatives that can boost the economy, particularly benefiting farmers who form the backbone of the sector.

However, he stressed the need for greater accountability and transparency among cooperative leaders, as well as stronger collaboration among stakeholders to enhance openness and reduce mistrust.