Tanzania’s agricultural coops power digital transformation for millions of farmers
For decades, many independent farmers operated in isolation, often exposed to exploitative middlemen, limited bargaining power and opaque pricing systems
DODOMA, June 16, 2026 — Millions of smallholder farmers in Tanzania are increasingly overcoming long-standing market barriers through a government-backed digital cooperative model that has already processed transactions worth more than Tsh 88 billion.
For decades, many independent farmers operated in isolation, often exposed to exploitative middlemen, limited bargaining power and opaque pricing systems. Today, the revitalisation of Agricultural Marketing Cooperative Societies [AMCOS] is positioning collective action and digital integration as key drivers of rural economic growth.
At the centre of this transformation is the Tanzania Cooperative Development Commission [TCDC], established in 2013 to modernise a sector that had drifted from its original cooperative foundations dating back to the 1930s. By organising farmers into structured, digitally enabled groups, the government aims to unlock Tanzania’s agro-industrial potential and advance the objectives of the Tanzania Development Vision 2025.
The M-Kulima digital shift
A major milestone was reached in early June 2026 when Vodacom Tanzania signed a Memorandum of Understanding with the TCDC to expand adoption of the M-Kulima digital platform across the cooperative sector.
The initiative seeks to digitise agricultural transactions at scale, marking one of the region’s most ambitious efforts to integrate technology into cooperative farming systems.
The M-Kulima platform is designed to reduce the risks associated with cash-based transactions that have historically challenged rural cooperatives. According to programme figures, more than 3.2 million farmers have been registered on the platform, while direct payments exceeding TZS 88 billion have been processed among more than 325,000 active users.
Through digital crop collection systems, input distribution and electronic payments, farmers are also beginning to establish verifiable financial records, potentially improving access to services such as microfinance and agricultural insurance.
Expanding financial inclusion through language accessibility
Technology alone, however, is not sufficient to address long-standing financial exclusion.
One persistent challenge for Tanzanian cooperatives has been the complexity of banking and loan agreements, which have traditionally been drafted in English and were often difficult for many rural stakeholders to interpret fully.
In response, Minister for Agriculture Daniel Chongolo recently directed the TCDC to ensure that financial and loan agreements involving cooperatives are prepared in Kiswahili to improve transparency and understanding.
Addressing the National Assembly, Chongolo said the practice would help strengthen informed decision-making and support fairer financial negotiations for cooperative societies.
Strengthening governance and value creation
Alongside digitisation, broader reforms are being implemented to improve governance and increase value within the sector.
The TCDC has intensified collaboration with the Prevention and Combating of Corruption Bureau [TAKUKURU] to strengthen accountability and reduce corruption risks within cooperative leadership structures.
Another priority is promoting value addition through the establishment of small-scale processing facilities, enabling farmers to capture greater returns from products such as cashew nuts and dairy.
Meanwhile, the rollout of laptops to regional cooperative registrars forms part of a wider transition from paper-based record keeping to digital administration systems.
Regional lessons
Tanzania’s cooperative-led digitisation strategy is attracting attention across East Africa.
While farmers in neighbouring markets often rely on fragmented private-sector platforms, Tanzania is pursuing a more coordinated model centred on institutional reform and state-supported digital infrastructure.
Dr Benson Ndiege, Registrar and Chief Executive of the TCDC, recently underscored the importance of sound governance during a cooperative summit in Dodoma.
“If we manage cooperatives well, we will achieve good results,” he said.
As the M-Kulima ecosystem expands, Tanzania’s smallholder farmers are increasingly becoming integrated participants in formal agricultural value chains, with greater access to markets, finance and opportunities for growth.
https://thecooperator.news/tanzanias-coffee-exports-set-to-rise-as-production-surges/
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