TCDC urges coops to embrace warehouse receipt system
DODOMA, September 15, 2023 – The Tanzania Cooperative Development Commission [ TCDC ] registrar and chief executive Dr. Benson Ndiege has urged secondary cooperatives to strengthen their commercial systems by using a warehouse receipt system.
He said the secondary cooperatives should be ready to add more cash crops in the implementation of warehouse receipt system, to enable cooperatives to operate competitively and reliably.
This is in line with the implementation of President Samia Suluhu Hassan’s directive that she issued at the African Food Systems Forum [AGRF], where she called on local cooperatives to ensure that they implement a warehouse receipts system for other cash crops as they do on cashew nuts and sesame crops.
Speaking in Dodoma days ago at a working session with secondary cooperatives and cooperative banks aimed at discussing the direction of cooperatives in the country, Dr Ndiege said this is the right time for the cooperatives to start strengthening their commercial systems by using a warehouse receipt system.
“There are some cooperatives in Songwe, Manyara and Southern regions that have implemented well the warehouse receipt system.
“Through this system, crops are sold at a much higher price. For instance, sesame price has increased from Tsh 1,300 kilo last year to Tsh 4,000 this year,” he said.
He said that to ensure TCDC is growing, efforts must be made to ensure the development and investment in modern digital systems with the aim of increasing operational efficiency in associations and supervisory authorities.
“So far we have registered 5,642 cooperatives and 704,648 members in our digital system. We must ensure all 7,000 cooperatives and over eight million members are registered in this system so that all our activities are performed in digital form, but also ensure that this system is compatible with digital scales so that we can modernise our works,” he said.
Establishing National Cooperative Bank
Ndiege has also urged secondary cooperatives to ensure the process of establishing the National Cooperative Bank, which is expected to be formally established by the end of the year is completed.
“We need Tsh 15 billion to be able to set up this bank, so far we have Tsh 6.7bbln with a deficit of Tsh 8.3bln, my office issued a document for members to donate or buy shares so that they can jointly own the bank, let’s discuss how we can mobilise them to be among the owners by donating or buying shares,” he said.
He said that in order to ensure the growth and development, cooperatives should ensure the management and control of these associations as well as encourage the establishment of cooperatives in various sectors and special groups to ensure more citizens benefits.
“We can encourage cooperatives in BBT [Building a Better Tomorrow] projects, horticulture, livestock and fisheries sectors, encourage the establishment of SACCOs within Agricultural Marketing Cooperative Society [AMCOS], provide education through regional corporate platforms as well as raise public awareness about the cooperatives through media,” he said.
Ndiege also said that in order to strengthen the activities of the cooperatives and management, each stakeholder is responsible for ensuring that the cooperative responds to the community needs with its resilience and sustainability by solving socio-economic challenges.
“We should continue to work with various stakeholders to solve corporate challenges as well as strengthen corporate asset investment in production,” he said.
Source: Daily News
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