Dar es Salaam. Coop Bank Tanzania has unveiled plans to build a Sh10 billion lending portfolio targeting young entrepreneurs and small businesses as part of a broader strategy to deepen financial inclusion and expand co-operative banking services across the country.
Speaking during the launch of the bank's Morocco branch in Dar es Salaam, the bank's chief executive officer, Godfrey Ng'urah, said the institution was pursuing an ambitious expansion programme aimed at bringing banking services closer to underserved communities while increasing access to affordable credit.
The newly opened branch is the bank's sixth outlet, with additional branches planned in Mtwara, Kagera, Mwanza and Arusha as part of a nationwide rollout.
“This is our sixth branch within a very short time. We are not expanding simply for growth, but to ensure Tanzanians have access to services that respond to their real needs,” said Mr Ng'urah.
He said the bank aims to operate more than 12 branches by the end of the year, with Mbeya, Songea and Katavi among areas earmarked for expansion.
Mr Ng'urah said the bank's growth strategy is anchored on addressing gaps in financial inclusion through the co-operative movement.
“Out of more than 45 million economically active Tanzanians, only a small proportion can access formal financial services. We want to change that by using co-operatives as a bridge to reach underserved communities,” he said.
According to him, the bank aims to ensure that every Tanzanian has access to a bank account by 2030, while increasing its active customer base to 10 million people.
He noted that Tanzania has more than 6,000 registered co-operatives, including around 2,000 savings and credit co-operative societies (Saccos) and 4,000 agricultural and producer co-operatives, with a combined membership exceeding eight million people.
“Our target is to ensure all co-operative members are integrated into the formal financial system and actively use banking services by 2030,” he said.
As part of the initiative, the bank has introduced specialised products targeting young people, farmers and small-scale entrepreneurs.
Mr Ng'urah said the lender is offering concessionary loans at interest rates of up to nine per cent to support youth-led enterprises and businesses operating within agricultural value chains.
“We cannot talk about financial inclusion without including boda boda operators, street vendors, fishermen and farmers. They are central to the economy,” he said.
The bank has also partnered with the Alliance for a Green Revolution in Africa (AGRA) to help reduce agricultural production costs through improved access to packaging materials, storage facilities and other inputs.
Mr Ng'urah said the partnership is expected to lower key input costs for young agripreneurs by up to 30 percent.
He further revealed that the bank recently signed an agreement with the Ministry responsible for youth development to expand financial literacy programmes and strengthen youth empowerment initiatives.
The collaboration will focus on promoting co-operative models among youth-led enterprises, improving access to finance and enhancing financial education.
“We want boda boda operators to organise themselves into co-operatives so that they can collectively own assets and improve their economic prospects,” he said.
Mr Ng'urah said the bank is also targeting Dar es Salaam's growing co-operative economy, noting that the city accounts for about 80 percent of co-operative activity linked to the lender.
He estimated that co-operatives in the city hold deposits and investments worth approximately Sh1.4 trillion across various financial institutions.
“We are here to tap into that co-operative economy and grow together with our members. Coop Bank is their bank,” he said.
The bank has also introduced new savings products, including an account offering returns of up to 13.5 percent, aimed at encouraging a stronger savings culture among co-operative members.
Mr Ng'urah said collaboration between government, financial institutions and the private sector would be critical in achieving Tanzania's financial inclusion objectives and expanding access to affordable financial services.
