TFC outlines procedures of buying shares for new Coop bank

The Tanzania Federation of Cooperatives (TFC) executive secretary Willigis O. Mbogoro has outlined procedures that would be followed by members and businesses to purchase shares for the establishment of the Cooperatives Bank.

Speaking to The Guardian yesterday, he said, the shares will be brought at all NMB bank branches.

One share will be valued at 1000/-, he said, adding
that individual members will be required to purchase at least 10 shares (10,000/). On the other hand, cooperative societies will be required to buy not less than 5,000 shares (whose value is 5m/-).

As for cooperative unions, they will be required to buy not less than 20,000 shares whose value will be 20m/-, he said.

He said the money accrued from the purchase of shares would be used to open up new bank branches in every zone.

The bank intends to raise a total of 15bn/- for the establishment of the bank, which will be housed at the Cooperative building in Dar es Salaam. He said all the work is expected to come to completion by 2016, adding” the establishment of this bank would help members to procure capital for agricultural and industrial production.”

Besides, he said, the establishment of the bank would make TFC to strengthen itself as well as boost agricultural production in the country.

Registration of the bank through by the Bank of Tanzania has already been done, he said.

TFC was registered on 8th December, 1994 with Registration Number 5503. Founding Members of TFC consists of five National Cooperative apexes from Tobacco, Cotton, Coffee, Cashew and Cereals and other produce industries; two specialised unions Savings and Credit Cooperative Union of Tanzania (SCCULT) and Tanzania Industrial Co-operative Union and six Cooperative Unions. Currently, the Cooperative movement comprises of about 6,000 Cooperative Societies having about 700,000 members. The number of TFC members is expected to rise to over ten million following the enactment of the Cooperative Act of 2004 and the establishment of the bank.