Strategic Partnership to Boost Digital Financial Inclusion in Tanzania
Tanzania is witnessing a significant transformation in its agricultural sector as millions of farmers gain access to improved digital financial services. This development comes from the renewed strategic partnership between Mixx by Yas and the Tanzania Cooperative Development Commission (TCDC). The collaboration aims to modernize financial management within cooperative societies and accelerate financial inclusion across the country.
The partnership focuses on enhancing transparency, accountability, and operational efficiency in cooperative societies by leveraging digital technology. This approach ensures that financial services are delivered more effectively to members, particularly farmers who have long relied on traditional methods of transaction.
During a signing ceremony held in Dodoma on Monday, Prof Peter Msoffe, Deputy Permanent Secretary in the Ministry of Agriculture responsible for Crop Development and Food Security, emphasized the importance of cooperative societies in Tanzania’s economy. He highlighted that these organizations handle transactions worth between Sh5 trillion and Sh7 trillion annually.
“Cooperative societies facilitate transactions worth between Sh5 trillion and Sh7 trillion, making them one of the country’s most important economic institutions,” he stated. Msoffe also noted that strengthening the cooperative movement through digital innovation would enhance efficiency and improve service delivery to millions of farmers.
James Sumari, Commercial Director at Mixx, explained that the renewed partnership will equip cooperative societies with digital tools to improve financial management while making essential financial services more accessible to farmers. “Our goal is to enable cooperative societies to manage their finances with greater transparency while providing members with easier access to financial services. Ultimately, this will enhance productivity and contribute to improving livelihoods and economic growth,” Sumari said.
Introducing the Mixx Kikoba Platform
Under the partnership, cooperative societies will utilize the Mixx Kikoba platform to manage member contributions, process payments, purchase shares, distribute dividends, and facilitate loan applications through mobile phones. This initiative reduces dependence on cash transactions and manual record-keeping, streamlining financial operations.
Sumari added that the platform is expected to simplify financial operations for cooperatives while strengthening accountability and improving access to formal financial services for members. He further mentioned that Mixx has already made a significant impact in Tanzania’s agricultural sector through its Mixx Kilimo platform. Over the past six years, this platform has reached more than 300,000 farmers and facilitated over Sh700 billion in financial transactions across the agricultural value chain.
Dr Benson Ndiege, Registrar of Cooperative Societies and CEO of TCDC, highlighted the growing role of digital technology in strengthening governance and accountability within cooperative societies. “The Government continues to promote the adoption of technology to improve transparency and efficiency in cooperative societies. This partnership will also strengthen the capacity of cooperative leaders and members to access better financial services,” he said.
Ndiege emphasized that expanding the use of digital financial solutions would help cooperative societies operate more efficiently while improving financial inclusion for farmers across the country.
Benefits of the Renewed Partnership
The renewed partnership is expected to accelerate the adoption of formal financial services among farmers, strengthen the cooperative movement, and support Tanzania’s broader agenda of building an inclusive digital economy.
By integrating digital tools into the operations of cooperative societies, this collaboration paves the way for a more transparent and efficient financial ecosystem. Farmers can now access services such as loans, savings, and insurance with greater ease, which ultimately contributes to their economic empowerment.
As the partnership progresses, it is anticipated that more farmers will benefit from the digital transformation, leading to increased productivity and sustainable economic growth. This initiative not only supports individual farmers but also strengthens the overall agricultural sector, ensuring that it remains resilient and adaptable to future challenges.
