Minister of Agriculture, Hussein Bashe, has commended Abdulmajid Nsekela, Chairman of the Tanzania Commission for Development of Cooperatives (TCDC), for his pivotal role in founding the Cooperative Bank of Tanzania (CBT).

Bashe expressed his appreciation yesterday during CBT’s inaugural Annual General Meeting (AGM), held nearly five months after the merger of Kilimanjaro Cooperative Bank (KCBL) and Tandahimba Community Bank (TCBL) was completed. 

Now fully registered with the Bank of Tanzania, CBT operates as a commercial entity serving the cooperative sector and the broader market.

“The establishment of this bank is a testament to the visionary leadership of TCDC Chairman Nsekela, whose primary goal since his appointment has been to expedite the creation of a national cooperative bank,” Bashe stated.

CBT is majority-owned by cooperatives and their members (51 percent), with the government holding a 10 percent stake, and the remaining 39 percent owned by individuals and companies. 

Cooperative shares are ring-fenced, meaning they can only be bought and sold among cooperative members.

The bank is strategically positioned to serve the entire value chain of cooperative businesses, offering competitive banking services aimed at empowering cooperatives and fostering financial independence. "The launch of CBT is a game-changer for the cooperative movement in Tanzania," Bashe added.

The minister also thanked President Samia Suluhu Hassan for her support in allocating 5bn/- to establish the bank and enabling the government to hold a minority stake. 

He announced that President Samia would officially launch CBT in a grand ceremony soon.

Bashe urged all cooperative societies to fully leverage the bank by opening accounts and conducting business through CBT. 

To this end, he directed the Registrar of Cooperatives to ensure that all agricultural transactions, such as cashew sales in the southern regions, are managed through CBT.

New branches are set to open in Dodoma by November and in Tabora by December 2024. 

The bank also benefits from a strategic partnership with CRDB Bank, which owns 20 percent of CBT, allowing CBT customers access to CRDB’s extensive network of ATMs and agents across the country during the transition period.

In his address, Nsekela reaffirmed his commitment to transforming Tanzania’s cooperative system into one that is more competitive, credible, and beneficial for its members. 

He outlined seven policy priorities aimed at modernizing and strengthening the cooperative sector, with a strong focus on digital transformation and the establishment of CBT. 

He further said that these initiatives align with his vision of cooperatives becoming self-reliant and key contributors to the national economy.

Godfrey Ng’urah, Managing Director of CBT, reiterated the bank’s mission to provide innovative financial solutions tailored to the needs of cooperatives. 

He highlighted technology as a core component of CBT’s strategy, aiming to revolutionize the cooperative sector by enabling digital operations and increasing financial inclusion for over 10 million Tanzanians within the next five years. 

Ng’urah further emphasized CBT’s goal of reaching more than 6,000 cooperative societies and serving over 8 million members.

Chairman of the CBT Board of Directors, Dr. Gervas Machimu, echoed these ambitions, stating that the bank will follow a mass banking approach, offering affordable and competitive services designed to boost financial inclusivity for farmers and cooperatives.

According to CBT’s consolidated financial statement, released on September 30, 2024, the bank posted a net profit of TSh646 million, with a loan book of 14.4bn/-. 

Customer deposits grew to 11.4bn/-, while shareholders’ equity reached 52bn/-.