Cooperative bank posts over 640m/- profit

DODOMA: THE newly established Cooperative Bank of Tanzania (CBT) has posted a net profit of 646m/- year-to-date, attributed to growing business with its customers.

According to the bank’s consolidated financial statement, its loan book grew to 14.4bn/-, customer deposits rose to 11.4bn/- and shareholders’ equity reached 52bn/-.

This announcement was made during the bank’s inaugural Annual General Meeting (AGM), marking a significant milestone in the cooperative banking sector.

During the AGM, Minister for Agriculture Mr Hussein Bashe called the launch of CBT as a game-changer for Tanzania’s cooperative movement and thanked the government for allocating 5bn/- for the bank’s establishment, allowing the government to hold a minority stake.

Minister Bashe encouraged cooperative societies under the Ministry of Agriculture to take full advantage of CBT by opening accounts and conducting business through the bank.

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He directed the Registrar of Cooperatives to ensure all agricultural transactions, such as cashew sales in southern regions, be managed through CBT. CBT is expanding its reach, with branches currently in Moshi and Tandahimba and new branches scheduled to open in Dodoma and Tabora.

The bank has a strategic partnership with CRDB Bank, which holds a 20 per cent stake, allowing CBT customers access to CRDB’s network of ATMs and agents.

In his address, TCDC Chairman Mr Abdulmajid Nsekela, reaffirmed his commitment to transforming Tanzania’s cooperative system to be more competitive, credible and beneficial for its members. He outlined seven policy priorities aimed at modernising and strengthening the cooperative sector, with a key focus on digital systems and the establishment of CBT.

The CBT Chairman Dr Gervas Machimu stated that the bank would continue to operate on the principle of mass banking, providing affordable services designed to enhance financial inclusivity for farmers and cooperatives.

The CBT Managing Director Godfrey Ng’urah emphasised CBT’s mission to provide innovative financial solutions tailored to cooperatives’ needs.

He highlighted the role of technology in CBT’s strategy, aiming to enhance financial inclusion for over 10 million Tanzanians within the next five years and serve more than 6,000 cooperative societies.