Dodoma. President Samia Suluhu Hassan today, April 28, 2025, officially opened the Cooperative Bank of Tanzania (Coop Bank), marking a major milestone in efforts to strengthen the cooperative sector and promote financial inclusion across the country.
Speaking during the ceremony, President Samia said the new bank would serve as a vital engine for financing cooperative ventures and improving rural livelihoods.
“The government recognises the critical role of cooperatives in uplifting communities. This bank will provide a solid foundation for financing cooperative initiatives and empowering Tanzanians,” she said.
Coop Bank was established through a strategic merger between Kilimanjaro Cooperative Bank Limited (KCBL) and Tandahimba Community Bank (TACOBA).
The consolidation aims to pool resources and expertise to better serve the cooperative movement.
The bank began operations in October 2024, following the granting of a transitional licence by the Bank of Tanzania in July 2024.
The bank now has a capital of Sh58 billion with its ownership structure reflecting its cooperative nature.
Cooperative unions, through a Cooperative Holding Company, hold 51 percent, CRDB Bank 20 percent, the government through the Treasury Registrar 10 percent, and private investors 19 percent.
Commitment to strengthening agricultural financing
The minister for Agriculture, Mr Hussein Bashe, outlined the government’s direct support in the establishment of Coop Bank, including a Sh5 billion capital injection to enable cooperative unions acquire 51 percent ownership.
He said the bank is expected to provide affordable loans to farmers at single-digit interest rates, supported by mechanisms to de-risk agricultural lending.
“To ensure that Coop Bank remains stable and focused, we are creating a dedicated financing window within the bank,” said Mr Bashe.
He further revealed that Tanzania had secured $129 million through the Building a Better Tomorrow (BBT) programme from the African Development Bank (AfDB).
Of this, $35 million will be channelled through the Agricultural Input Trust Fund (AGITF) to Coop Bank to fund guarantee schemes and equity support for agricultural projects.
“The Ministry will continue to strengthen AGITF to channel more funds to Coop Bank. This will help farmers access loans at affordable interest rates and mitigate risks associated with agricultural financing,” he said.
Mr Bashe added that Coop Bank would significantly expand financial services to cooperative societies and rural communities, supporting the government’s broader development agenda.
Transforming rural finance
Coop Bank Managing Director, Mr Godfrey Ng’urah, said the inauguration represents a revival of dedicated cooperative banking in Tanzania, coming 40 years after the closure of the Cooperative and Rural Development Bank.
Mr Ng’urah, who is on secondment from CRDB Bank Plc, said Coop Bank has commenced operations with three branches in Moshi, Tandahimba, Tabora, and Dodoma, alongside a network of 58 agents across the country.
Additional branches are expected to open soon in Dar es Salaam, Kagera, Mtwara, and Mwanza.
He reported that Coop Bank closed the 2024 financial year with a loan book worth Sh16 billion, deposits amounting to Sh18 billion, and a net profit of Sh578 million.
“This is not merely a bank. It is a movement to transform the lives of the rural majority,” he said.
Mr Ng’urah noted that more than 70 percent of Tanzanians remain outside the formal banking system, and Coop Bank is committed to bridge that gap.
“Our target is to ensure that more than half of bankable Tanzanians are brought into the banking system. By 2030, we aim to reach at least 10 million customers. Currently, the entire banking sector has about five million active bank accounts,” he said.
He added that with over 6,000 agricultural cooperative societies and 2,000 savings and credit cooperative societies (Saccos) across the country — representing more than 10 million members — Coop Bank aims to reach these groups, offering tailor-made financial services to meet their needs.
The inauguration ceremony was attended by senior government officials, cooperative leaders, representatives from the diplomatic community, and other stakeholders.
