DODOMA: THE government has warned that cooperative leaders found embezzling members’ funds or misusing cooperative resources will face arrest and prosecution as part of a nationwide crackdown aimed at restoring integrity and confidence in the cooperative movement.
Deputy Minister for Agriculture David Silinde issued the warning while closing the 2026 International Day of Cooperatives celebrations today in Dodoma on behalf of Prime Minister Dr Mwigulu Nchemba, saying the government would not tolerate financial mismanagement that undermines cooperative societies and deprives members of their livelihoods.
“We will arrest and prosecute every leader involved in embezzlement. There will be no compromise because cooperative societies exist to improve members’ welfare, not to enrich a few individuals,” Mr Silinde said.
He said the government will continue implementing the “Protect Cooperatives, Choose Integrity” campaign to strengthen transparency, accountability and the fight against corruption within cooperative societies.
Mr Silinde also directed all local government directors and employers across the country to immediately remit outstanding deductions belonging to members of Savings and Credit Cooperative Societies (SACCOS), saying delays amount to exploitation of members.
“The government considers delayed remittance of members’ contributions as exploitation that weakens the cooperative sector. We will continue protecting members’ rights and ensuring cooperatives remain financially strong,” he said.
The Deputy Minister urged cooperative members to safeguard their societies by electing leaders of integrity, actively participating in cooperative affairs and promptly reporting any signs of fraud or abuse of resources.
He said the government would continue supporting digital transformation within cooperatives to improve financial management, accountability and service delivery, while expanding access to affordable financing through the Tanzania Cooperative Bank, SACCOS and other financial institutions.
Mr Silinde further called for increased participation of women and young people in cooperative societies, saying their involvement is crucial to building inclusive and sustainable economic growth in line with the National Development Vision 2050.
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He said the private sector, including cooperatives, is expected to contribute about 70 per cent of the country’s economic output required to realise Tanzania’s one-trillion-dollar economy.
During the event, the Tanzania Federation of Cooperatives (TFC) signed a Memorandum of Understanding with the Institute of Directors Tanzania (IoDT) to strengthen corporate governance and certify cooperative leaders. The event also launched registration for the Africa Savings and Credit Cooperative Conference to be hosted in Dar es Salaam from October 12 to 16 this year.
Presenting the cooperative movement’s position, TFC Chairperson Tito Haule said Tanzania currently has 6,557 registered cooperative societies with about 3.4 million members registered through a digital system.
He said Agricultural Marketing Cooperative Societies (AMCOS) increased commodity sales from 1.69tri/- in 2021 to 3.74tri/- during the 2024/25 season, while SACCOS assets rose from 836bn/- to 1.46tri/- over the same period.
Haule, however, appealed to the government to review the operations of the Cashewnut Board of Tanzania (COPRA), arguing that high levies and the licensing of private brokers were weakening agricultural cooperatives and reducing farmers’ earnings.
He also called for lower statutory charges and improved access to reliable markets for strategic crops, including coffee, cashew nuts, cotton, tea and tobacco.
Earlier, Tanzania Cooperative Development Commission (TCDC) Registrar and Chief Executive Officer Dr Benson Ndiege said the commission would intensify implementation of the “Protect Cooperatives, Choose Integrity” campaign during the 2026/27 financial year to strengthen accountability and restore public confidence in the sector.
He said cooperative members themselves remain the first line of defence in protecting cooperative assets and ensuring proper governance.
This year’s International Day of Cooperatives was commemorated under the theme: “Cooperatives for a Peaceful World.”
