Presentation on theme: "Sustainability of farmer organizations: institutional sustainability, financial sustainability and capacity building By :- Gloria Anaclet Mazoko Tanzania."— Presentation transcript:
Sustainability of farmer organizations: institutional sustainability, financial sustainability and capacity building By :- Gloria Anaclet Mazoko Tanzania Federation of Cooperatives
Tanzania Federation of Cooperatives (TFC) TOGETHER WE BUILD OUR ECONOMY”
Cooperatives in Tanzania Currently, Cooperative movement comprises about 9,596 (2011) Cooperative Societies. SACCOS being leading in number (55.4%) followed by AMCOS (29.4%) TFC is made up of members from different economic sectors, varies from Agricultural marketing cooperatives, savings and credit, Industrial, Housing and dairies cooperatives.
Introduction - TFC TFC: is the national Cooperative Umbrella Organisation that promotes, serves and coordinates the development and prosperity of all Cooperative societies in Tanzania Mainland. It is member owned and managed in the spirit of internationally recognised co-operative principles and values.
Registration TFC was registered on 8th December, 1994 with Registration Number It replaced the then Cooperative Union of Tanzania (CUT)
Our Vision To be a vibrant National Cooperative umbrella organization through which all types of cooperatives will be united in absorbing and transforming the value of entrepreneurship and good governance
Our Mission To facilitate the growth of sustainable and democratic cooperatives in competitiveness environment whereby the poor majority will join cooperatives for the improvement of their living standard socially and economically
Membership Almost 90% of our members come from agricultural sector Tobacco, Cashew nut, Coffee, Cotton etc From financial sector small industries Livestock Housing cooperatives
Main Activities of TFC Provide technical support in different areas: Through trainings, study visits within and outside the country, exchange programs like Business Experience Exchange Program Financial consultations and arrangement Including linking members to financial institutions like banks and developing partners, developing funding proposals, invest in real estate, sensitizing/mobilizing cooperatives to establish a National Cooperative Bank
activities Marketing services Linking up with available market & provide market information through website, media, electronic news letter, leaflets, Organizing arrange for its members to participate in Warehouse Receipt System (WHRS) as one of the market arrangement & storage facilities. Cooperative represented in the cashewnuts marketing committee which also set the indicative price yearly
activities TFC is now lobby for the politicians not to be involved in the marketing committee Organizing & arranging for members to participate in different exhibitions (local & international) Value addition in the Dairy processing, coffee & cashewnuts processing
activities Lobbying and advocacy for the inclusion of co-operators interests to be incorporated in the new constitution by:- TFC mobilizing sensitize & arrange meetings for co- operators actively participate in providing inputs in the new constitution On March, 2012 TFC submitted 3 names for the possible inclusion in the presidential special committee of collecting views for new constitution Lobbying to have a clause in the new constitution for co- operators to be represented in the National Assembly as an MP
activities Giving publicity of all Co-operative activities in the country, through media, documentaries, website & publication materials Arranging for the audit and supervision of member societies. Collecting, analyzing and disseminating information and statistics relating to or of particular relevance to co-operative societies operations. Initiating education & training programs amongst members & arrange for seminars.
activities Addressing cross cutting issues like gender mainstreaming, HIV/AIDS and child labour In 2009 TFC developed its HIV/AIDS policy with an attempt to create a cooperative movement & its community that is free from HIV & AIDS through reduction of HIV spread, improve quality of life of those infected & mitigating the impact of HIV among TFC members
activities In line with the policy, In 2010 developed the Guidelines for mainstreaming HIV & AIDS for TFC & its members. Popularization of cooperative policy and Act Developed a simplified swahili booklet which is use friendly
institutional sustainability TFC has the following strengths on which it capitalizes its future operations The Federation has newly employed officers in the Directorate of Co-operative Development to achieve best its objectives. Its role as national umbrella for cooperatives makes TFC provide unique services.
Institutional sustainability With CODAS in place and the operation of the Federation’s website, TFC Management Information System is more reliable and giving an accurate data flow to its stakeholders. A strong linkage with other organizations interested in cooperative development has been established. (ICA, ILO, FAO, EAFF and the like etc.)
Institutional sustainability Political Independence. The New Co-operative Societies Act, No.20 of 2003 makes the cooperative movement politically free entity hence making the movement an independent, free-standing advocacy organization representing all cooperatives in the country. TFC is the only National Umbrella Cooperative Movement that entirely focuses on cooperatives in the country and provides targeted support for the stakeholders
financial sustainability TFC obtains most of its financial resources from:- Its buildings which provides more than 90% of the annual total revenue annual subscriptions from its members Development Partners and limitedly from the Government,
Financial sustainability TFC is striving to make use of other sources of income including to revive its out-of-date cooperative insurance and dormant cooperative printing company limited TFC new initiatives of Re-establishing a new national cooperative bank
TFC New initiatives of Re-establishing a new national cooperative bank TFC has set aside some strategies to accomplish its services of which one of them is the re- establishment of the National Cooperative Bank.
Implementation Task accomplished so far are:- The Feasibility for the establishing the Co-operative Bank was done by Ernst and Young Advisory Services in 2006 was then reviewed and updated in The study revealed that:- 1. There is substantial demand for the cooperative bank services in different areas visited in the country
implementation 2. Cooperatives are willing to join the bank as shareholders & themselves have the required capability to be viable partners on a sustainable basis. 3. In terms of market assessment and its viability the cooperative movement in the country itself has huge market potential for growth and sustainability of the proposed Cooperative Bank
implementation Based on the outcome of the Feasibility Study a Business Plan has been developed detailing the roadmap to take the project forward. The developed Plan of establish Tanzania Co-operative Bank was accomplished & approved by TFC GA in May, 2011.
implementation Under EAFF support, the technical team visited Kenya to learn from the experiences of Kenya on the processes of establishing the Cooperative Bank of Kenya with a view of replicating the experiences on the establishment of cooperative bank in Tanzania Develop share application form
implementation Provide technical backstopping to the technical committee/Steering committee Opening of escrow account for capital contributions for members seeking to be shareholders of the bank Registrar has released a special statement required all cooperative to set aside irrevocable commitment in their 2012/13 budgets & called for the formation meeting on 6 th November, 2012
Activities in process Draft Memorandum and Articles of Association (MEMARTS) and all corporate and legal documentation. Preparation of all necessary policies, manuals and operational procedures for the proposed bank Share capital mobilization through meetings with various sections of the stakeholders in the country Sensitization has been done in Lindi, Mtwara, Tanga, Dar es salaam, Iringa, Dodoma, Mbeya, Morogoro, Songea
Activities in Process The bank will start its operations in Dar es Salaam with few branches upcountry & slowly expand its branch network into the rural areas. First branch will be located at Ushirika towers
Activities in process In the TFC AGM held on 20 th March 2012, set and agreed on the minimum share required for Individual co-operator, primary society, Union, Apex and Federation
Future Plans Formation meeting planned to take place on 6 th November, 2012 in Morogoro. Invitations have been sent all over the country Formation of the interim committee which will lead the process till registration Facilitation of the registration process Demand for refund of shares from Government held in CRDB Bank Opening the 1 st branch including recruitment of staff
capacity building. Institutional Capacity Building TFC Secretariat & Board Members strengthened The membership base expanded TFC representation from other sectors broadened TFC Advocacy Plan and Communication Strategy developed and approved
Institutional Capacity building Lobbying and advocacy of agreed policy priority issues implemented More working partners identified New projects for collaboration identified and implemented
Members Capacity Building According to the TFC mandate, it takes measures to empower members to operate efficiently and effectively at the respective levels through:- Defining skills needed for its members Setting specific programmes and the implementation is done in collaboration with the Government, development partners and other interested parties.