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Tanzania to deregister over 3,000 cooperatives over poor management

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Christian Fernsby ▼ | March 23, 2020
The government of Tanzania announced deregistration of at least 3,436 out of 11,149 cooperatives across the country over poor management.
Japhet Hasunga
Business in Tanzania   Japhet Hasunga, the Minister for Agriculture
Japhet Hasunga, the Minister for Agriculture, said the 3,436 cooperatives will be officially deregistered on April 17 following an audit report by the Cooperative Audit and Supervision Corporation (COASCO) that revealed irregularities in running the cooperatives.

Topics: Tanzania

"The audit report has shown that most of the cooperatives were not operating in areas they were registered and most of them lacked leadership," Hasunga told a news conference in the capital Dodoma.

According to the International Labor Organization (ILO), a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

ILO views cooperatives as important in improving the living and working conditions of women and men globally as well as making essential infrastructure and services available even in areas neglected by the state and investor-driven enterprises.

Hasunga said COASCO audited cooperatives between July and December 2019 involving 11,149 cooperatives.

"The audit report shows that the situation of most of the cooperatives is alarming mainly caused by poor management," said the minister.

He said most of the disqualified cooperatives were found with weak financial management and accumulation of debts from farmers.