Dar es Salaam - Despite facing global economic challenges, the financial sector in Tanzania remains robust and resilient, playing a pivotal role in the country's economic growth, according to Bank of Tanzania (BoT) Governor, Mr. Emmanuel Tutuba.
Mr. Tutuba made these remarks during the launch of the Savings and Credit Cooperative Societies (SACCOS) annual report for the year 2022 over the weekend. He emphasized that Tanzania boasts a well-managed financial sector characterized by sufficient capital and funds.
"The financial sector in our country is very stable, and if you leverage this partnership effectively to achieve your goals, you will contribute significantly to our economic growth," Mr. Tutuba affirmed.
He highlighted the remarkable progress made in the cooperative sector, where certain SACCOS have achieved substantial growth in capital and membership. Mr. Tutuba encouraged SACCOS leaders, members, and executives to safeguard their resources and systems to ensure efficient operations, enabling them to compete effectively in the financial sector.
Governor Tutuba also commended the Tanzania Cooperative Development Commission (TCDC) for its efforts in addressing cooperative-related issues, underlining the government's commitment to fostering strong partnerships by creating a modern working environment.
He stressed that the Central Bank and the commission would continue to create an enabling environment to ensure that SACCOS across the country operate safely and efficiently, in accordance with relevant laws, guidelines, and policies. This will ensure strong systems, effective resource management, capital preservation, and the security of members' assets.
Dr. Benson Ndiege, the Registrar of Cooperative Societies, highlighted TCDC's continued success in promoting, registering, licensing, and supervising cooperative societies. He noted significant growth in SACCOS performance and supervision for the year 2021, with 801 SACCOS licensed and membership increasing by 38% to 18 million, up from 13 million members in 2021.
Furthermore, Dr. Ndiege reported a 37% increase in assets, rising from TZS 889.53 billion in 2021 to TZS 1.22 trillion in 2022. Total savings and deposits also surged to TZS 897 billion in 2022 from TZS 678.81 billion in 2021.
He highlighted a 12% increase in SACCOS' loan portfolio, reaching TZS 105 trillion by December 2022, up from TZS 798.40 billion in 2021. Additionally, SACCOS' share capital increased to TZS 203 billion, marking a 45% rise from the TZS 140.11 billion recorded in 2021.
Dr. Ndiege noted that the number of employees in cooperative societies grew to 15,321 by the end of 2022, compared to 14,976 in the previous year. He also highlighted an increase in the number of female employees from 6,038 in 2021 to 6,459 in 2022.
Furthermore, he reported an 18.3% increase in SACCOS' investments, reaching TZS 94.2 billion from TZS 79.6 billion in 2021. The largest investment component was in buildings, accounting for TZS 39.6 billion, or 42% of the total investment.
Additionally, SACCOS' payments to the government in taxes and other deductions increased to TZS 9.5 billion from TZS 7.84 billion in 2021, driven by various factors, including government amendments in the Finance Act NO.3 of 2021.
The robust performance and growth of SACCOS showcased in the annual report underscore their significant contribution to Tanzania's financial sector and broader economy.