National Cooperative Bank Ushers in New Era for Tanzanian Cooperatives

Dodoma, July 26, 2024 – Tanzania launched the National Cooperative Bank (NCB) in a historic move, marking a pivotal moment for the nation’s cooperative movement and agricultural sector. The inauguration ceremony, which also marked the final shareholders’ meeting of the Kilimanjaro Cooperative Bank (KCBL), solidified the transformation of KCBL and the Tandahimba Cooperative Bank into the unified NCB.

The journey to establish the NCB began in 2019 with discussions between the Ministry of Agriculture, KCBL leadership, and the Tanzania Federation of Cooperative Unions (TFC). After navigating a complex nine-year process, a decision was made to leverage KCBL and the Tandahimba Cooperative Bank as the foundation for this ambitious project.

Facing significant financial challenges, both banks underwent substantial reforms under government guidance. KCBL transformed from a TZS 600 million loss in 2020 to a thriving institution generating TZS 1.5 billion in annual pre-tax profits.

To meet the NCB’s minimum capital requirement of TZS 20 billion, a strategic partnership with CRDB Bank was forged. This partnership saw KCBL and Tandahimba Cooperative Bank’s debts converted into equity, paving the way for a management overhaul and the successful merger of the two banks.

With the Bank of Tanzania’s (BOT) approval, the NCB secured nearly TZS 24 billion in initial capital from diverse investors, including cooperative societies, SACCOs, and individuals.

The NCB is poised to revolutionize financial services for cooperatives and farmers in Tanzania. It will offer traditional banking services and act as a strategic financial partner, facilitating access to capital and fostering sustainable growth.

Agriculture Minister Hussein M. Bashe expressed his enthusiasm for the launch, stating, “After a long and arduous journey, I am overjoyed that this long-held dream has finally come to fruition.”

The National Cooperative Bank represents a significant step towards a more robust and inclusive financial landscape for Tanzania, empowering cooperatives and farmers to achieve their full potential.

#NationalCooperativeBank #TanzaniaAgriculture #CooperativeBanking