Sustainability of farmer organizations: institutional
sustainability, financial sustainability and capacity building By
:- Gloria Anaclet Mazoko Tanzania Federation of Cooperatives Slide
2 Tanzania Federation of Cooperatives (TFC) TOGETHER WE BUILD OUR
ECONOMY Slide 3 Cooperatives in Tanzania Currently, Cooperative
movement comprises about 9,596 (2011) Cooperative Societies. SACCOS
being leading in number (55.4%) followed by AMCOS (29.4%) TFC is
made up of members from different economic sectors, varies from
Agricultural marketing cooperatives, savings and credit,
Industrial, Housing and dairies cooperatives. Slide 4 Introduction
- TFC TFC: is the national Cooperative Umbrella Organisation that
promotes, serves and coordinates the development and prosperity of
all Cooperative societies in Tanzania Mainland. It is member owned
and managed in the spirit of internationally recognised
co-operative principles and values. Slide 5 Registration TFC was
registered on 8th December, 1994 with Registration Number 5503. It
replaced the then Cooperative Union of Tanzania (CUT) Slide 6 Our
Vision To be a vibrant National Cooperative umbrella organization
through which all types of cooperatives will be united in absorbing
and transforming the value of entrepreneurship and good governance
Slide 7 Our Mission To facilitate the growth of sustainable and
democratic cooperatives in competitiveness environment whereby the
poor majority will join cooperatives for the improvement of their
living standard socially and economically Slide 8 Membership Almost
90% of our members come from agricultural sector Tobacco, Cashew
nut, Coffee, Cotton etc From financial sector small industries
Livestock Housing cooperatives Slide 9 membership Slide 10 Slide 11
Slide 12 Main Activities of TFC Provide technical support in
different areas: Through trainings, study visits within and outside
the country, exchange programs like Business Experience Exchange
Program Financial consultations and arrangement Including linking
members to financial institutions like banks and developing
partners, developing funding proposals, invest in real estate,
sensitizing/mobilizing cooperatives to establish a National
Cooperative Bank Slide 13 activities Marketing services Linking up
with available market & provide market information through
website, media, electronic news letter, leaflets, Organizing
arrange for its members to participate in Warehouse Receipt System
(WHRS) as one of the market arrangement & storage facilities.
Cooperative represented in the cashewnuts marketing committee which
also set the indicative price yearly Slide 14 activities TFC is now
lobby for the politicians not to be involved in the marketing
committee Organizing & arranging for members to participate in
different exhibitions (local & international) Value addition in
the Dairy processing, coffee & cashewnuts processing Slide 15
activities Lobbying and advocacy for the inclusion of co-operators
interests to be incorporated in the new constitution by:- TFC
mobilizing sensitize & arrange meetings for co- operators
actively participate in providing inputs in the new constitution On
March, 2012 TFC submitted 3 names for the possible inclusion in the
presidential special committee of collecting views for new
constitution Lobbying to have a clause in the new constitution for
co- operators to be represented in the National Assembly as an MP
Slide 16 activities Giving publicity of all Co-operative activities
in the country, through media, documentaries, website &
publication materials Arranging for the audit and supervision of
member societies. Collecting, analyzing and disseminating
information and statistics relating to or of particular relevance
to co-operative societies operations. Initiating education &
training programs amongst members & arrange for seminars. Slide
17 activities Addressing cross cutting issues like gender
mainstreaming, HIV/AIDS and child labour In 2009 TFC developed its
HIV/AIDS policy with an attempt to create a cooperative movement
& its community that is free from HIV & AIDS through
reduction of HIV spread, improve quality of life of those infected
& mitigating the impact of HIV among TFC members Slide 18
activities In line with the policy, In 2010 developed the
Guidelines for mainstreaming HIV & AIDS for TFC & its
members. Popularization of cooperative policy and Act Developed a
simplified swahili booklet which is use friendly Slide 19
institutional sustainability TFC has the following strengths on
which it capitalizes its future operations The Federation has newly
employed officers in the Directorate of Co-operative Development to
achieve best its objectives. Its role as national umbrella for
cooperatives makes TFC provide unique services. Slide 20
Institutional sustainability With CODAS in place and the operation
of the Federations website, TFC Management Information System is
more reliable and giving an accurate data flow to its stakeholders.
A strong linkage with other organizations interested in cooperative
development has been established. (ICA, ILO, FAO, EAFF and the like
etc.) Slide 21 Institutional sustainability Political Independence.
The New Co-operative Societies Act, No.20 of 2003 makes the
cooperative movement politically free entity hence making the
movement an independent, free-standing advocacy organization
representing all cooperatives in the country. TFC is the only
National Umbrella Cooperative Movement that entirely focuses on
cooperatives in the country and provides targeted support for the
stakeholders Slide 22 financial sustainability TFC obtains most of
its financial resources from:- Its buildings which provides more
than 90% of the annual total revenue annual subscriptions from its
members Development Partners and limitedly from the Government,
Slide 23 Financial sustainability TFC is striving to make use of
other sources of income including to revive its out-of-date
cooperative insurance and dormant cooperative printing company
limited TFC new initiatives of Re-establishing a new national
cooperative bank Slide 24 TFC New initiatives of Re-establishing a
new national cooperative bank TFC has set aside some strategies to
accomplish its services of which one of them is the re-
establishment of the National Cooperative Bank. Slide 25
Implementation Task accomplished so far are:- The Feasibility for
the establishing the Co-operative Bank was done by Ernst and Young
Advisory Services in 2006 was then reviewed and updated in 2010.
The study revealed that:- 1. There is substantial demand for the
cooperative bank services in different areas visited in the country
Slide 26 implementation 2. Cooperatives are willing to join the
bank as shareholders & themselves have the required capability
to be viable partners on a sustainable basis. 3. In terms of market
assessment and its viability the cooperative movement in the
country itself has huge market potential for growth and
sustainability of the proposed Cooperative Bank Slide 27
implementation Based on the outcome of the Feasibility Study a
Business Plan has been developed detailing the roadmap to take the
project forward. The developed Plan of establish Tanzania
Co-operative Bank was accomplished & approved by TFC GA in May,
2011. Slide 28 implementation Under EAFF support, the technical
team visited Kenya to learn from the experiences of Kenya on the
processes of establishing the Cooperative Bank of Kenya with a view
of replicating the experiences on the establishment of cooperative
bank in Tanzania Develop share application form Slide 29
implementation Provide technical backstopping to the technical
committee/Steering committee Opening of escrow account for capital
contributions for members seeking to be shareholders of the bank
Registrar has released a special statement required all cooperative
to set aside irrevocable commitment in their 2012/13 budgets &
called for the formation meeting on 6 th November, 2012 Slide 30
Activities in process Draft Memorandum and Articles of Association
(MEMARTS) and all corporate and legal documentation. Preparation of
all necessary policies, manuals and operational procedures for the
proposed bank Share capital mobilization through meetings with
various sections of the stakeholders in the country Sensitization
has been done in Lindi, Mtwara, Tanga, Dar es salaam, Iringa,
Dodoma, Mbeya, Morogoro, Songea Slide 31 Activities in Process The
bank will start its operations in Dar es Salaam with few branches
upcountry & slowly expand its branch network into the rural
areas. First branch will be located at Ushirika towers Slide 32
Activities in process In the TFC AGM held on 20 th March 2012, set
and agreed on the minimum share required for Individual
co-operator, primary society, Union, Apex and Federation Slide 33
Future Plans Formation meeting planned to take place on 6 th
November, 2012 in Morogoro. Invitations have been sent all over the
country Formation of the interim committee which will lead the
process till registration Facilitation of the registration process
Demand for refund of shares from Government held in CRDB Bank
Opening the 1 st branch including recruitment of staff Slide 34
capacity building. Institutional Capacity Building TFC Secretariat
& Board Members strengthened The membership base expanded TFC
representation from other sectors broadened TFC Advocacy Plan and
Communication Strategy developed and approved Slide 35
Institutional Capacity building Lobbying and advocacy of agreed
policy priority issues implemented More working partners identified
New projects for collaboration identified and implemented Slide 36
Members Capacity Building According to the TFC mandate, it takes
measures to empower members to operate efficiently and effectively
at the respective levels through:- Defining skills needed for its
members Setting specific programmes and the implementation is done
in collaboration with the Government, development partners and
other interested parties. Slide 37 TOGETHER WE BUILD OUR ECONOMY
THANK YOU
