Tanzania: Chongolo Orders Kiswahili Contracts for AMCOS Loans

Dodoma — MINISTER for Agriculture, Daniel Chongolo has directed the Tanzania Cooperative Development Commission (TCDC) to engage financial institutions and ensure that loan and financial agreements signed with Agricultural Marketing Cooperative Societies (AMCOS) are prepared in Kiswahili.

The directive was issued in the National Assembly yesterday as the minister responded to concerns that many cooperative members continue to sign contracts written exclusively in English.

"I direct the Tanzania Cooperative Development Commission to engage banks and ensure that financial and loan agreements with AMCOS are written in Kiswahili. The current situation does not do justice to our cooperatives and takes us back to the era of incomprehensible contracts," Mr Chongolo said.

The minister issued the directives while responding to a basic question from Jacqueline Kainja (Special Seats, CCM), who sought clarification on when agreements between banks and AMCOS would be made available in Kiswahili.

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Mr Chongolo acknowledged that most primary cooperative societies currently sign standard loan agreements prepared by banks in English. He said the government believes cooperative members should fully understand the obligations they undertake before committing themselves to financial agreements.

According to the minister, making contracts available in Kiswahili will strengthen transparency, improve understanding among cooperative members and enhance accountability in the management of loans and other financial arrangements.

The move is expected to help cooperative members make informed decisions and reduce misunderstandings that may arise from language barriers in financial agreements.

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