PM calls for digital shift as women’s representation in SACCOS rises

Tanzania’s Prime Minister, Dr Mwigulu Nchemba, has called on financial cooperatives in the country and across Africa to make digital transformation and women’s leadership central priorities, saying the future of the movement depends on institutions that are both inclusive and trusted.

Dr Nchemba was speaking on October 15 at the official opening of the SACCA Congress 2026 in Dar es Salaam, a gathering of cooperative leaders from across the continent. He said technology was becoming increasingly important in widening access to financial services, improving transparency, and reaching communities that have long been left outside the formal banking system.

Tanzania has already made notable progress in digital finance. According to the 2023 financial inclusion report cited by the Prime Minister, 72 percent of Tanzanian adults now use mobile money. In the cooperative sector, SACCOS have established 231 mobile money agency arrangements, and five have launched their own mobile applications. Services delivered through mobile apps and USSD platforms have registered close to 119,000 users and processed 3.5 million transactions.

Despite those gains, only slightly more than a quarter of SACCOS in Tanzania have a core banking system, a sign that much more investment in digital infrastructure is needed. Dr Nchemba urged cooperatives to adopt technology that would make financial services more accessible to farmers, entrepreneurs, women and young people while also improving operational efficiency.

At the same time, he warned that digitalisation must not come at the expense of security. The Prime Minister stressed the need for stronger cybersecurity, data protection and consumer confidence so that members’ savings and personal information remain safe. “The cooperative movement of the future must be both digital and trusted, delivering opportunities securely to every African and every member,” he said.

Women’s participation was another major theme of his address. Dr Nchemba reported that women’s representation within Tanzania’s SACCOS has risen from 29.7 percent to 32.5 percent. He described this as progress, but said more needs to be done to promote inclusive leadership and ensure that women participate meaningfully in decision-making rather than only as members.

The Prime Minister also highlighted governance challenges. He said trust and accountability were essential in both households and cooperative institutions, especially when it comes to financial matters. He pointed to non-performing loans, which stand at 8.1 percent, above the preferred five percent threshold, and called on cooperative leaders to address such problems openly. Stronger governance, professional management and effective supervision were necessary, he said, to protect members’ savings and sustain public confidence.

Young people are also becoming a bigger force within the cooperative movement. Dr Nchemba said the number of SACCOS members under the age of 36 rose by 22 percent in one year and now accounts for 37 percent of total membership. However, only 11 percent of board members are young people, meaning the sector has yet to translate youth participation into leadership. He called on cooperative leaders to create more opportunities for younger members.

The congress takes place as financial cooperatives across Africa face increasing pressure to modernise, particularly in the face of competition from mobile money platforms and digital banks. In Tanzania, SACCOS remain a key channel for reaching rural and agricultural communities, where formal banks are often absent. They are seen as an important tool for deepening financial inclusion and supporting grassroots economic activity.

In his closing remarks, Dr Nchemba tied the issues together, saying cooperative leaders must combine digital innovation with good governance and inclusive participation. The movement, he said, must remain relevant to the changing needs of its members, and only institutions that adapt will continue to earn the trust of the communities they serve.