Prime Minister Kassim Majaliwa and key stakeholders applauded the establishment of the cooperative bank as a transformative milestone in Tanzania’s cooperative sector.

The bank, designed to empower cooperative societies and improve access to financial services, is poised to unlock economic opportunities for citizens, especially in rural areas. In his address, Prime Minister Majaliwa expressed the government’s support for the initiative, emphasizing that CBT would play a critical role in enhancing livelihoods and boosting economic growth. 

"This bank is a significant milestone in our efforts to empower cooperative societies and ensure that our citizens, particularly in rural areas, have access to financial services that will enable them to improve their livelihoods,” he said. 

He also noted that the government is committed to further supporting this initiative, which will contribute to poverty reduction.

The Minister of Agriculture, Hussein Bashe, echoed the Prime Minister’s sentiment, highlighting the importance of the cooperative sector in rural communities, especially for farmers. 

"The formation of CBT is timely and significant. It will not only improve access to financial services but also promote agricultural growth, especially in rural areas where the cooperative model has traditionally been strong," said Minister Bashe. 

He also pointed out that the bank would provide loans for agricultural inputs and help enhance value chains, which will be vital for the development of the agricultural economy.

The launch of CBT follows the successful merger of two significant cooperative banks: Kilimanjaro Cooperative Bank (KCBL) and Tandahimba Cooperative Bank (TACOBA). 

Both institutions faced various challenges but have now been revived and consolidated, creating a stronger, more efficient financial entity. 

The support from the Government and key stakeholders, such as CRDB Bank, has been pivotal in the merger, leading to the creation of the Cooperative Bank of Tanzania (CBT).

CRDB Bank, which holds a 20 percent stake in CBT, has played a central role in its formation. The bank has contributed not only to the capitalization of CBT but has also provided technical expertise, management support, and advanced banking systems to ensure the success of the new cooperative bank. 

"CRDB Bank’s involvement in the cooperative sector is deeply rooted in its history," said Abdulmajid Nsekela, Chairman of the Tanzania Commission for Development of Cooperatives (TCDC) and Group CEO of CRDB Bank. "We remain committed to supporting the growth and success of the cooperative sector, helping our fellow Tanzanians access the financial services they deserve."

CRDB Bank has a long-standing tradition of supporting cooperatives across Tanzania, including significant investments in KCBL and TACOBA. These investments, including 3.2bn/- in TACOBA (2018) and 7bn/- in KCBL (2020), helped stabilize the banks, strengthen governance structures, and prepare them for the eventual merger that resulted in CBT.

"The establishment of CBT marks a significant chapter in the history of Tanzania’s cooperative sector. As a shareholder and strategic partner, CRDB Bank is proud to be part of this transformational journey," Nsekela added.

The official launch of CBT by President Dr. Samia Suluhu Hassan is expected to have a transformative effect on the cooperative sector in Tanzania. 

This new bank will provide a robust foundation for the growth and success of cooperatives, positioning them as key drivers of economic development and contributing significantly to the nation’s prosperity.

In his address, Nsekela emphasized the role of CBT in driving economic empowerment for farmers, herders, fishers, and small-scale entrepreneurs. "The Cooperative Bank of Tanzania will act as a catalyst for economic transformation," said Nsekela.