TANZANIA has fulfilled its commitment to the 2014 African Union’s Malabo Declaration by allocating 10 percent of its national budget to agriculture, President Samia Suluhu Hassan has stated.

Launching the Co-operative Bank of Tanzania in the capital, the Head of S emphasized the importance of this accomplishment in the country’s development strategy.

The cooperative bank, with a capital of 58bn/-, is owned 10 percent by the government, 20 percent by CRDB Bank and 70 percent by cooperative unions’ members, she said.

“Each year, the government sets aside 10 percent of the national budget for agriculture. I’m happy to share that Tanzania has now achieved the goal outlined in the 2014 Malabo Declaration,” she stated.

The newly established bank has already opened windows in Mtwara, Dodoma, Tabora and Kilimanjaro regions, she said, pointing at the government's broader ambition: to ensure agriculture contributes at least 10 percent to the country’s Gross National Product (GNP).

While the bank is set to empower farmers, it must operate in strict compliance with financial regulations established by the Bank of Tanzania (BoT), she said, encouraging cooperative union members to take advantage of the bank's services by borrowing funds to purchase agricultural inputs directly from manufacturers.

This would help address longstanding challenges such as poor standards and delays that farmers had faced when procuring inputs through the Tanzania Commission for Cooperatives, she further noted.

“I am aware of the challenges you encountered when purchasing fertilisers, seeds and other agricultural inputs. Now, take this opportunity — go to the bank, borrow funds and import your inputs directly,” she urged.

President Samia also tasked the Agriculture ministry and Treasury with ensuring the sustainability of the bank's services, emphasizing that strong, well-functioning cooperatives are a government priority.

Hussein Bashe, Agriculture minister, said that the government has released 653bn/- for fertiliser procurement so far, reiterating the datum that Tanzania is currently 120 percent food secured.

Godfrey Ng'urah, the Coop Bank (T) managing director stated that the bank has branches in Moshi and also in Tandahimba, Mtwara Region, with new branches planned for Dodoma and Tabora.

The bank's overall goal is to reach more than 6,000 cooperative societies and serve over 8m members, he added.