Coop Bank opens its seventh branch, targets further growth in rural areas

Minister for Livestock and Fisheries Dr Bashiru Kakurwa, who launched the branch, praised the bank’s rapid growth and urged it to develop affordable financial products tailored to the needs of people working across the agricultural value chain.

He said the bank should pay particular attention to farmers, livestock keepers, fishermen, traders, women and young people, whose access to affordable financing remains critical to expanding their businesses.

“Coop Bank should give the livestock and fisheries sector special attention and continue developing financial products that respond to the real needs of livestock keepers, fishermen, farmers, cooperatives, traders and other stakeholders across the value chain,” he said.

Dr Bashiru also urged young people and women to join cooperatives, saying collective action would improve their ability to access loans, investment opportunities and financial education.

He called on the bank to offer financing whose terms reflect production seasons, business needs and cash flows, while encouraging cooperatives to add value to their products.

Rapid growth

Coop Bank chief executive Godfrey Ng’urah said the lender had recorded strong growth since its establishment, with capital and shareholders’ funds increasing from Sh27 billion to Sh46 billion by June 2026.

He said the bank lent Sh14 billion in 2025, while lending had exceeded Sh36 billion during the first half of this year, with about 60 percent directed to cooperatives.

The bank’s total assets have also increased significantly, rising from Sh49 billion in December 2024 to Sh235 billion by June this year.

Deposits grew from Sh15 billion in 2024 to Sh156 billion over the same period, while lending increased from Sh14 billion to Sh136 billion.

Mr Ng’urah said the growth reflected increasing confidence in the bank and its role in supporting the cooperative economy.

Despite population growth, he said only about 22 percent of Tanzanians use banking services, highlighting the opportunity for Coop Bank to expand financial inclusion.

The lender aims to reach eight million members and two million entrepreneurs by 2030 through access to capital, loans and financial education.

“We are committed to building an inclusive financial economy by reaching small businesses and farmers and ensuring every cooperative member has a bank account,” Mr Ng’urah said.

The bank also plans to expand digital banking services and use artificial intelligence to improve how it serves customers.

Kagera opportunity

The opening of the Bukoba branch comes as Kagera seeks to strengthen its position in coffee, livestock, fisheries and cross-border trade.

The region has more than 140 primary cooperative societies affiliated with Kagera Cooperative Union (KCU), which has more than 60,000 members. Coffee remains one of the region’s major economic activities, alongside livestock, fishing and trade.

The new branch is therefore expected to give cooperatives and producers greater access to financing for production, collection, processing and marketing.

Donald Emmanuel, chairman of Juhudi AMCOS, said the cooperative had already benefited from Coop Bank financing to purchase coffee from farmers.

He said the group borrowed Sh1.5 billion last year for coffee collection and repaid the loan successfully. This year, it secured Sh5 billion, of which about 75 percent had already been repaid. Mr Emmanuel said greater competition in the coffee market had benefited farmers, while urging Coop Bank to continue supporting producers through competitive financing.

Businessman Amir Hamza, who has more than 30 years’ experience, called for greater investment in value addition to protect farmers from fluctuations in global commodity prices.

“Coffee, fish and milk need to be processed further. When you add value, you create protection against price fluctuations,” he said.

Expansion plans

Mr Ng’urah said the Bukoba branch formed part of Coop Bank’s first-phase expansion programme, under which the lender intends to establish a presence in 25 regions.

The bank currently has seven branches and is preparing to open another in Mwanza.

Dr Bashiru said the expansion should go beyond opening branches and focus on creating products that enable cooperative members and shareholders to increase their economic value.

For the 2026/27 financial year, the Ministry of Livestock and Fisheries has identified increasing production, strengthening markets and value addition, promoting investment, improving resource management, and strengthening research, training and extension services among its priorities.

The minister said financial institutions such as Coop Bank had an important role to play in supporting those ambitions by ensuring producers and businesses could access financing suited to their needs.