Prime Minister Mwigulu Nchemba has challenged savings and credit cooperative societies (Saccos) to channel members’ savings into productive investments that create jobs, expand businesses and improve household incomes, as Tanzania’s cooperative sector seeks to widen its contribution to economic growth.
Speaking at the 26th African Saccos conference at the Julius Nyerere International Convention Centre (JNICC) on Thursday, Dr Mwigulu said cooperatives needed to move beyond providing loans and play a greater role in financing productive economic activities.
He said Africa’s development depended partly on its ability to mobilise domestic savings and direct the money towards investments that generate employment and improve people’s livelihoods.
“Africa must build its capacity to turn people’s savings into investments, investments into businesses, and businesses into jobs and social welfare,” he said.
Speaking on behalf of President Samia Suluhu Hassan, Dr Mwigulu urged Saccos to strengthen savings mobilisation, improve governance and expand access to financial services, particularly for young people and other groups seeking capital to establish or grow businesses.
He said the cooperatives had a responsibility to translate members’ contributions into tangible economic benefits, including financing agricultural production, supporting small businesses and helping households meet essential needs.
“We should not wait for the future of development to build itself; we must build our own future. Our Saccos should be at the forefront of transforming people’s lives, empowering young people and turning savings into productive investments,” he said.
The call comes as Tanzania’s cooperative financial sector serves millions of members, with its capacity to finance economic activities depending on effective savings mobilisation, prudent lending and sound management.
Agriculture Minister Daniel Chongolo said Tanzania had 981 Saccos with more than 1.9 million members and financial transactions exceeding TZS1.6 trillion.
The figures highlight the scale of the sector and its potential to support businesses, farming and household investment if funds are channelled into productive activities and managed effectively.
Mr Chongolo also said Tanzania had 231 mobile financial service agents associated with Saccos, reflecting efforts to extend services through digital channels.
He stressed, however, that the expansion of digital finance needed to go hand in hand with technological improvements, information security and customer protection.
For members, the shift towards digital services could improve access to financial transactions, while stronger safeguards would be necessary to protect their savings and personal information.
Dr Mwigulu also called for greater participation by young people in the cooperative movement, urging Saccos to provide them with access to credit, skills development and leadership opportunities.
He said involving young people was essential to building a future economy in which more citizens could establish businesses, increase production and create employment rather than depend solely on existing job opportunities.
On governance, the Prime Minister stressed the importance of integrity, accountability and professionalism among Sacco leaders and employees. He also urged members to repay loans on time, saying financial discipline and transparency were necessary to safeguard savings and sustain lending operations.
Poor loan repayment and weak management can undermine a cooperative’s ability to lend to other members, making responsible borrowing and effective oversight important to maintaining confidence in the institutions.
Dr Mwigulu cited the role of Saccos in helping farmers finance production, families pay school expenses, workers build homes, and women and young people establish businesses.
He said these experiences demonstrated that cooperative finance could support both household welfare and wider economic development when institutions operated effectively.
“Behind every Sacco account is an important story in a member’s life. Behind every loan are expectations, and behind every cooperative is a community that trusts us to help build a better life,” he said.
He added that the cooperative model had demonstrated the value of collective action, enabling communities to pursue opportunities that might be difficult for individuals to achieve independently.
For Tanzania, the challenge will be to ensure that the sector’s growing reach translates into more productive lending, sustainable businesses and employment, while protecting members’ savings and maintaining public confidence in cooperative institutions.