INCLUSIVE GROWTH: Samia backs co-ops services

DODOMA: PRESIDENT Samia Suluhu Hassan has said the government aims to transform the agriculture sector through cooperative development, improved extension services and increased investment to create a more inclusive, prosperous Tanzania.

Speaking at a meeting with Extension Officers and Cooperative Officers at Chamwino State House in Dodoma on Saturday, President Samia outlined her strategy to enhance national food security and create employment opportunities, particularly for the youth and fostering an inclusive economy.

During the event, President Samia also announced a substantial investment of 5bn/- to capitalise the Cooperative Bank of Tanzania (CBT), aiming to expedite its establishment and provide essential support to cooperatives, expressing high confidence in the bank’s success. “We do not want it to fail,” she said.

“We are beginning to see positive results from the significant government investment in agriculture and the dedicated efforts of extension officers,” she said.

She added, “Extension officers are the often-overlooked architects of Tanzania’s food security. Their tireless efforts have been instrumental in transforming the government’s substantial agricultural investments into tangible results, leading to a remarkable 128 per cent food sufficiency.”

President Samia said by providing farmers with essential knowledge on fertiliser application, optimal planting times and the effective use of agricultural tools, these dedicated professionals have empowered rural communities and driven the nation towards self-sufficiency.

She said that strengthening cooperatives and ensuring they operate effectively for the benefit of their members is essential to advancing the government’s goal of an inclusive economy.

Emphasising the importance of cooperative advocacy and protection for their members, President Samia said, “Cooperatives should focus on the development and protection of their members, not on violating their rights as previously reported.”

She called for a system to evaluate extension officers using Key Performance Indicators (KPIs) and incorporating feedback from farmers to ensure that services meet their needs effectively.

The President also reaffirmed the government’s commitment to modernising cooperative management and ensuring that cooperatives are managed according to the cooperative principles with transparent financial reporting.

“Government subsidies for inputs are transitional,” she said. “We provide these subsidies to build a foundation for farmers, reduce their production costs and help them achieve self-sufficiency and enter commercial agriculture.”
Looking ahead, President Samia urged the strengthening of cooperatives to independently purchase fertilisers and pesticides.

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She said that current subsidies will continue for the next three to four years to support this transition. “Utilise skilled youths graduating from cooperative colleges to build the cooperatives we need,” President Samia said.

The President directed the Ministry of Agriculture to closely monitor the cooperative sector and to establish an extension agency to elevate extension officers and professionalise their services.

President Samia mentioned three key reasons for focusing on the agriculture sector. First, it supports a large portion of the grassroots population involved in agriculture, livestock and fisheries and the goal is to elevate these individuals as Tanzania progresses toward Vision 2050.

Second, with global food insecurity, Africa is expected to be a major food producer and Tanzania should not fall behind in this opportunity and third, the sector has significant potential to create employment for the youth, who constitute over 60 per cent of the population. Hence, the government’s focus on enhancing agriculture is pivotal for economic growth and job creation.

Chairman of Extension Officers, Peter Ndunguru, acknowledged that over 90 per cent of extension officers are effectively utilising the tools provided by the government.

However, he raised concerns about the merger of agriculture, livestock and fisheries sectors at lower level into one department, a situation that complicates the implementation of extension services.

He requested the separation of these sectors to streamline operations and address the shortage of extension officers, with current numbers falling well below the 20,000 needed.

Tanzania Cooperative Development Commission (TCDC) Chairperson Abdulmajid Nsekela outlined seven key areas they adopted for strengthening cooperatives, in line with President Samia’s 4Rs (Reconciliation, Resilience, Reforms and Rebuilding).

These include managing cooperatives commercially, using ICT for management, revising cooperative policies and assessing cooperative assets. He also mentioned a proposed cooperative bank where members would hold 51 per cent of the shares and the government 10 per cent.

“Our goal was to raise 20bn/- in capital,” Mr Nsekela said. “Although legally 15bn/- is sufficient to start a bank, we set a target of 20bn/- to ensure a strong start. We have currently raised 16.9bn/- and completed the necessary procedures, including obtaining a licence from the central bank,” he said.