Cooperative Sector in Tanzania

Abstract

It has been two decades since the Government of Tanzania introduced the Cooperative Development Policy of2002 to address the socioeconomic environment for cooperatives to operate in a free market era. The goal of this policy was to create improved and sustainable cooperatives capable of meeting members' economic and social needs. The enactment of the Cooperative Societies Act No. 20 of 2003, the Cooperative Act No. 6 of 2013, and the Cooperative Reforms and Modernization Programme (CRMP) (2005—2015) was a fundamental step towards establishing appropriate legislation to guide the implementation of the 2002 Cooperative Policy. This study assessed the successes and challenges of cooperatives in Tanzania since the implementation of the 2002 Cooperative Policy and its subsequent laws and programs. The study employed a systematic literature review, collecting data from secondary sources, including scientific articles and government reports. Qualitative data were analyzed using thematic techniques. The study found that two decades of cooperative reforms contributed significantly to the modernization and growth of the cooperative sector in Tanzania through improved governance standards, enhanced education and training initiatives, technological advancements, and increased awareness of cross-cutting issues. These achievements underscore the importance of strategic planning and collaborative efforts in driving sustainable development within the cooperative movement. However, some areas of the cooperative reforms were less successful, including governance challenges such as embezzlement and misappropriation of funds, an increase in unnecessary complaints and legal cases, and low educational levels among cooperative board members and executive staff. Additionally, there has been a decrease in the number of SACCOS and other forms of cooperatives due to inactivity. Problems related to power dynamics within cooperatives also persist. The study concluded that while two decades of cooperative reforms were fruitful for the cooperative movement in Tanzania, some prevailing challenges are partly due to outdated legislation and poor enforcement of laws. It is recommended that the government introduce new policies and programs to address the unattended challenges highlighted in this study.