Unleashing the Untapped Potential of…

Table of Contents.

· rnIntroduction.

· rnWhy Ushirika is a Big Thing.

· rnCooperative and stakeholder conference topics that gave me a glimpse intornthe future

· rnWhy MazaoHub is a new way to transform Cooperatives into powerhouses?

· rnHow MazaoHub Technology works?

· rnBusiness Support and Development systems

Introduction.

There is arncommon proverb across Africa – ‘umunturnngumuntu ngabantui’ in Zulu – a person is not a person without otherrnpeople. This proverb has never been truer than when it comes to the untappedrnpotential of Cooperatives in Tanzania and beyond. During the CooperativernConference with stakeholders held on the 27th of February 2023 at CRDB BankrnHeadquarters, I was fortunate enough to have a minute to give my opinion andrnsay this phrase: "Ushirika (Cooperatives)rnis a big thing." Unfortunately, I did not have the opportunity tornelaborate on this.

I am a youngrnperson with a strong passion for Cooperatives, and whenever I read thernCooperative Society principles, I tremble and end up saying to myself: Ushirika is a Big thing. As I sit herernin front of my computer, I can't help but feel emotional about the untappedrnpotential of rural and farm Cooperatives. These Cooperatives, made up ofrnsmall-scale producers, are the unsung heroes of our economy. They provide thernraw materials for all biggest manufacturing companies, they produce more thanrn60% of the food we eat everyday. The potential of Cooperatives is not justrntheoretical; it has been proven in practice. There are countless examples of Cooperativesrnthat have transformed the lives of their members and their communities.

· rnInrnIndia, the Amul Dairy Cooperative has become a global brand, which has createdrnjobs for millions of people.

· rnMondragonrnCorporation: This Spanish cooperative is the largest in the world, with overrn80,000 members and 260 companies across a variety of industries. It generatesrnover €12 billion in revenue.

· rnLandrnO'Lakes: This American agricultural cooperative has over 3,000 member-ownersrnand generates over $14 billion in annual revenue.

· rnOromiarnCoffee Farmers Cooperative Union (OCFCU): This Ethiopian coffee cooperative hasrnover 400,000 members and is one of the largest coffee cooperatives in thernworld. It has been instrumental in improving the livelihoods of coffee farmersrnand ensuring fair prices for their produce. It generates over $100 million inrnrevenue.

· rnGroupernd'Action pour le Progrès et la Paix (GAPP): This Senegalese cooperative hasrnover 400 members and produces and exports organic mangoes. It has beenrnsuccessful in creating sustainable jobs and improving the local economy.

· rnThernGroupe d'Intérêt Économique des Producteurs de Coton (GIE-PC) in Mali has overrn11,000 members and generates over $20 million in annual revenue from cottonrnsales.

· rnThernNile River Cooperative in Egypt has over 2,000 members and generates over $2rnmillion in annual revenue from citrus fruit sales.

· rnNationalrnUnion of Coffee Agribusinesses and Farm Enterprises (NUCAFE): This Ugandanrncoffee cooperative has over 200,000 members and has been instrumental inrnimproving the quality of Ugandan coffee and increasing its value on the globalrnmarket.

Why Ushirika is a Big Thing.

Beforerndelving further into why Ushirika is arnBig thing, allow me to first applaud the Cooperative societies that participatedrnin the Cooperative Conference with stakeholders. . I was very impressed by KaragwernDistrict Cooperative Union Limited (KDCU Ltd). I was greatly pleased with theirrnvarious projects, including the school project, hotel project, factory project,rncooperative farms, and other initiatives.

There arernmany cooperative societies from Tanzania that serve as examples to be emulatedrndue to their successes, which I have not mentioned yet. As we proceed, I willrncite them as examples.

Let’srnunderstand the following,

· rnFirstrnand foremost, Cooperatives are founded on the principles of democraticrnownership and control, where each member has an equal say in therndecision-making process, regardless of their financial contribution. Thisrndemocratic structure ensures that the interests of all members are taken intornaccount and that decisions are made for the benefit of the entire community.

· rnSecondly,rnCooperatives promote economic and social development by empowering small-scalernproducers and marginalized communities. They provide a platform for members tornpool resources, access markets, and negotiate better prices for their products.rnThis, in turn, leads to increased income and improved livelihoods for members,rntheir families, and the wider community.

· rnThirdly,rnCooperatives foster social cohesion and promote community development by providingrna forum for members to come together, share ideas, and work towards commonrngoals. They encourage members to take responsibility for their own developmentrnand that of their community, leading to increased social capital and stronger,rnmore resilient communities.

· rnFourthly,rnCooperatives have a significant impact on the economy, contributing tornemployment creation, poverty reduction, and wealth creation. They generaternrevenue, which is reinvested in the business or used to fund communityrndevelopment initiatives.

Okay, now let’s get to the point,

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What if Irntold you that these cooperatives have the power to stand up for themselves andrnbecome even bigger than the manufacturing companies they supply raw materials?

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What if Irntold you that by harnessing the power of people coming together, theserncooperatives could solve some of the greatest challenges facing our societyrntoday, such as unemployment?

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What if Irntold you that Cooperatives could be the solution to the inequality that plaguesrnour economy?

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What if Irntold you that cooperatives could empower youth, women and marginalizedrncommunities, giving them a voice and a stake in their own economic future?

Ushirika is a big thing, and its potential should not be underestimated. Cooperativesrnhave the potential to become a movement. By banding together, they can leveragerntheir collective power to negotiate better prices for their products, operaternas PLC companies, access new markets, and even create their own manufacturingrncompanies more like Bakhresa Industries or Mohamed Enterprises and more. Thernpossibilities are endless.

Imagine a cooperative with 300,000 members, which means 300,000 directrnjobs. Let's assume each member employs 2 workers on their farms, which meansrn600,000 indirect jobs. Now, imagine that this cooperative owns a large factoryrnlike the Bakhresa factories, which means there are even more direct jobs. Ifrnthis cooperative operates like a traded PLC company with professionals employedrnwithin it, that means even more jobs. I am just giving an example of onerncooperative. I know some people might think it is impossible, but I want tornremind them that the power of many people coming together is a force that canrnmove mountains.

Cooperativernand stakeholder conference topics that gave me a glimpse into the future

The question to ask is, how could this be possible? Allow me to elucidaternby sharing some of the insights I gained from attending the cooperative andrnstakeholder conference. During the event, I was presented with a glimpse intornthe future as i was particularly moved by four of the seven key topicsrnpresented. These topics were:

Investment in modern digitalrn systems to increase operational efficiency in cooperatives, includingrn regulatory authorities:

During the cooperatives andrnstakeholder conference, this was the first topic, and the discussion was thernneed for investment in modern digital systems to increase operationalrnefficiency in cooperatives and regulatory authorities. This is because the usernof technology can greatly enhance the efficiency of cooperative operations,rnmaking it easier to manage data, members, streamline processes, and improverncommunication.

Investing in modern digital systemsrnsuch as MUVU (mfumo wa vyama vya ushirika) to help TCDC to support cooperativesrnand enable Cooperatives to manage their financial and administrative functionsrnmore effectively. This can help to reduce errors, improve transparency, andrnenhance accountability in cooperative operations.

Accelerating the establishmentrn of a national cooperative bank to enable cooperatives to conduct business,rn access low-interest loans, and operate commercially:

Another important topic ofrndiscussion during the cooperatives and stakeholder conference was the need tornestablish a national cooperative bank. This is because cooperatives often facerndifficulties in accessing financing and conducting business, which can hinderrntheir growth and development.

A national cooperative bank canrnhelp to address these challenges by providing cooperatives with access tornlow-interest loans, financial services, and other resources that can help themrnto operate more effectively. This can help to support the growth andrndevelopment of strong cooperatives in Tanzania, which can in turn help to driverneconomic development and improve livelihoods for cooperative members.

Improving policies, laws, and cooperativern governance to promote the growth and development of strong cooperatives inrn Tanzania:

Another important topic ofrndiscussion during the cooperatives and stakeholder conference was the need tornimprove policies, laws, and cooperative governance to promote the growth andrndevelopment of strong cooperatives in Tanzania.

This is because the regulatoryrnenvironment can have a significant impact on the ability of cooperatives tornoperate effectively. By improving policies and laws, the government can createrna more enabling environment for cooperatives to thrive, while promoting greaterrntransparency, accountability, and good governance in cooperative operations.

Encouraging a reliable andrn competitive business-oriented cooperative system that focuses on addingrn value to production within cooperatives:

The cooperatives and stakeholderrnconference also focused on the need to encourage a reliable and competitivernbusiness-oriented cooperative system that focuses on adding value to productionrnwithin cooperatives.

This is because cooperatives play arncritical role in supporting rural development and agricultural production inrnTanzania. By encouraging a business-oriented approach, cooperatives can focusrnon adding value to the products and services they produce, while promotingrngreater efficiency and effectiveness in their operations.

This can help to improve therncompetitiveness of cooperatives, while supporting the growth and development ofrnrural communities. It can also help to promote greater sustainability inrncooperative operations, ensuring that they are able to continue to meet thernneeds of their members and contribute to the broader development of Tanzania.

WhyrnMazaoHub is a new way to transform Cooperatives into powerhouses?

Manyrncooperatives and AMCOS (Agricultural Marketing Cooperative Societies) are stillrnnot investable due to their members(farmers) lack of quality KYC (Know YourrnCustomer) data. Additionally, some cooperatives are unable to sell theirrnfarmers' products directly or make a profit from exports because their productsrnare not traceable.

Manyrncooperatives also lack proper business management data and struggle to operaternas profitable enterprises. They face difficulties marketing their farmers'rnproducts due to a lack of branding that can attract both local and foreignrnmarkets. Furthermore, the management of smallholder farmers' production,rntracing, storage, and marketing is hampered by a lack of a proper farm ERPrn(Enterprise Resource Planning) and business management system.

As a result,rninvestors are hesitant to invest in cooperatives since there is no accuraternbusiness data or proper business management system in place. Even as today,rnmany are struggling to get finance to invest in manufacturing plants. If wernwant to change the lives of smallholder farmers and help them break free fromrnpoverty, we must invest in and support cooperatives to help them operate morernefficiently and effectively.

MazaoHub is here to conquer every obstaclernand hurdle that cooperative societies face, and we do so with fervor andrnpassion. By collaborating with these societies, we transform them intornsuccessful business ventures, bringing them prosperity and growth.

We invest heavily in technology,rn as we are a tech company at heart. By providing our innovative tool, thern MazaoHub web system and mobile app, we digitalize their operations andrn empower them with farmer profiling, field mapping, agronomy servicern management, crop collection, movement, traceability management, and arn global sourcing hub for food and agriculture. Our app creates a QR codern for every farmer, providing them with a digital identity, and we generatern automated traceability reports. These state-of-the-art solutions providern precise data, insights, and support to cooperatives and farmers, enablingrn informed decision-making and increased efficiency.
We also offer business supportrn and investment because we believe that our technology is the key torn unlocking accurate data about cooperatives. With this information, we workrn closely with our professional networks to transform these cooperativesrn into profitable enterprises. We offer investment write-ups, events, andrn forums to invite more investors and provide real-time data. We aim torn establish manufacturing plants, export, and much more for thesern cooperatives, bringing them long-lasting success and prosperity.

How MazaoHubrnTechnology works?

We co-creaternand customize MazaoHub Technology solutions together with Cooperatives tornoptimise the way in which they work with smallholders. We take the time tornreally understand what they need and customize and implement MazaoHub systemsrnthat will not only streamline their operations but have the flexibility to addrnnew features in future.

Our platformrnoffers a range of modules to meet the diverse needs of each cooperative, eachrnAMCOS and each farmer with all their extension officers, including:

1. Identity and traceability solutions. Top of Form

Farmer Profiling: At MazaoHub, we understand the importance of havingrn accurate and up-to-date information about our farmers. That's why we havern created a mobile app that allows cooperative extension officers to registerrn farmers within just two minutes. The app can be used even without internetrn access and enables the recording of vital information such as assets,rn pictures, locations, and any other requirements requested by thern cooperative.

Extension officers use MazaoHub torngenerate unique” QR codes” for each farmer which can be printed onto cards orrnstickers. These codes can be used as identification or even loyalty cards forrnfarmers. Training attendance, field visits or track input sales or loan forrneach farmer can be captured by scanning the code using the MazaoHub Mobile App.rnMazaoHub also integrate biometric technology for those seeking the mostrnsophisticated levels of farmer identification i.e fingerprint solution. QRrncodes can be attached to boxes or buckets or sacks – or to any item thatrnrequires tracking. The location and content / status of these entities can bernupdated and tracked to provide real-time traceability.

Our goal is to provide cooperativesrnwith quality data that will support their objectives and help them makerninformed decisions. By updating each farmer's information every season,rnMazaoHub will also provide financial institutions with a clear understanding ofrnthe farmer's profile, making it easier for them to provide the necessaryrnsupport.

With our farmer profiling module, wernare creating a more connected and informed agriculture community, where farmersrnare empowered and cooperatives can thrive.

· rnField Mapping and PlantrnIdentification:rnMazaoHub's commitment to revolutionizing agriculture goes beyond farmerrnprofiling. Our platform features a field mapping module that uses Googlerncoordinates to accurately map out the size of each farm. This enablesrncooperative extension officers or farmers to easily measure the size of theirrnfarms and identify the plants growing in each field. GPS location functionality includesrnthe ability to map field perimeters and media data (photo and video) can alsornbe captured. Even if there is no mobile data in rural locations, the App willrnstore inputs until it has regained signal. We have designed the App to storerncore farmer data so that extension workers can access key information to helprnthem do their jobs even if they are offline.

This stage is critical forrntraceability and monitoring purposes, and allows cooperatives to keep track ofrnthe number of farmers, the number of acres each farm owns, and the number ofrnplants owned by each farmer. With this information, cooperatives can makerninformed decisions and provide the necessary support to their farmers.

Our Agronomy Service Managementrnmodule is the heart of this technology and provides even more insight into thernoperations of each farm. With the combination of field mapping and plantrnidentification, cooperatives will have a complete and accurate picture of theirrnoperations.

2. rnAgronomy Management and FarmrnActivities Monitoring.

This modulernis a cutting-edge solution designed to support extension officers in providingrnworld-class agronomic services to farmers. With the increasing demand forrnefficient and effective farming practices, it is imperative that extensionrnofficers have access to the right tools to help them deliver the best results.

Unfortunately,rnthe majority of extension officers in cooperatives are still relying on manualrnpaperwork processes to manage their farmers and provide agronomic services.rnThis not only takes up a significant amount of time but also increasesrnoperational costs and reduces the overall efficiency of their services.

The MazaoHubrnApp is designed to revolutionize the way extension officers work by providingrnthem with an easy-to-use platform that automates all their agronomicrnactivities. With the Agronomy Service Management Module, extension officers canrnuse their mobile phones to serve thousands of farmers with farm accuracy,rninsights and data, including real-time monitoring or automatic alerts.

· rnExtension Officer Work plan.

This is the first module that can bernused to make planning and managing fieldwork much easier. A Work Plan modulernenables extension officers and managers to:

o Design new surveys using MazaoHubrneasy to use Survey Builder tool.

o These surveys can then be shared withrnselected extension officers, along with instructions on the number of data setsrnto collect and the time period in which to do this.

o Extension officer tasks andrnperformance can be monitored on the MazaoHub Management Dashboards to keeprntrack of how field work is progressing.

o Managers can also use the system’srnin-app notifications which can send alerts to one or many extension officers

· rnFarm Budgeting & Forecasting.

The MazaoHub boasts a crucialrnfunction of generating budgets and projections for individual farmers based onrnAI technology. The farmer works alongside an extension officer to create arnfarming budget specific to the season, taking into account the number of acres,rncrop types, and other contributing factors. Using field and climaticrnconditions, as well as other important factors, the MazaoHub farm managementrnsystem generates budgets and forecasts for efficient monitoring of all productionrnprocesses and resources.

This allows extension officers to access datarnand progress of any farmer, and make informed decisions on how best to supportrnthem.

During actual farm activities, theyrncan manage, control and monitor farm operations of each farmer in each season,rnat any time, by following good agricultural practices (GAP).

· rnGAP Management

MazaoHub is a comprehensive tool thatrnoffers farmers the ability to collaborate with extension officers, enablingrnthem to manage all aspects of their farm activities with ease. This digitalrnplatform enables farmers to monitor and track the cost involved in theirrnfarming activities, keep track of all expenses, the amount of fertilizers used,rnidentify and manage pests and soil health, and many others.

The GAP Management module, which isrnone of the most remarkable features of MazaoHub, empowers farmers to followrnspecific procedures and good agricultural practices required to achieve desiredrnoutcomes based on the particular crop. The module is designed to ensure thatrnfarmers implement all critical aspects and guidelines in each of the followingrnactivities:

a) rnFarmrnPreparation: This involves the necessary steps to prepare the land for farmingrnactivities, including clearing, ploughing, and preparing seedbeds. With MazaoHub,rnfarmers can follow good agricultural practices and keep a record of everythingrndone, including all the related costs.

b) rnSoilrnPreparation: This includes assessing soil health and preparing the soil tornensure it is conducive to the specific crop being planted. MazaoHub enablesrnfarmers to follow good agricultural practices and keep track of everythingrndone, including all the related costs.

c) rnProperrnPlanting Distance: This involves determining the ideal spacing between plantsrnto ensure optimal growth and yield. With MazaoHub, farmers can follow goodrnagricultural practices and keep track of everything done, including all thernrelated costs.

d) rnIrrigationrnManagement: Farmers can effectively manage irrigation to ensure that theirrncrops receive sufficient water for growth and development. With MazaoHub,rnfarmers can follow good agricultural practices and keep track of everythingrndone, including all the related costs.

e) rnFertilizerrnApplication: This includes determining the correct type and amount ofrnfertilizer required for optimal plant growth and health. With MazaoHub, farmersrncan follow good agricultural practices and keep track of everything done,rnincluding all the related costs.

f) rnPestrnand Disease Management: Farmers can identify and manage pests and diseases thatrnpose a threat to their crops. With MazaoHub, farmers can follow goodrnagricultural practices and keep track of everything done, including all thernrelated costs.

g) rnPruningrnand Training: This involves training plants to grow in a particular directionrnto achieve maximum yield and productivity. With MazaoHub, farmers can followrngood agricultural practices and keep track of everything done, including allrnthe related costs.

h) rnPre-Harvestrnand Post-Harvest Handling: This involves taking the necessary steps to ensurernthat crops are harvested and stored correctly to maintain their quality. WithrnMazaoHub, farmers can follow good agricultural practices and keep track ofrneverything done, including all the related costs.

i) rnCroprnRotation: Farmers can manage crop rotation, which is essential to maintain soilrnhealth and fertility. With MazaoHub, farmers can follow good agriculturalrnpractices and keep track of everything done, including all the related costs

MazaoHubrnalso automatically produces a traceability report for every activity done onrnthe farm based on the above activities and much more. This feature ensures thatrnfarmers can monitor progress, identify areas that require improvement, and makerndata-driven decisions that can positively impact their farming activities.Top of Form

3. rn The Crops Collection, Movementrnand Traceability Management.

This is arncutting-edge module that empower COOPERATIVES to effectively manage and monitorrnthe harvest and movement of each farmer's Crops. With the use of data from thernprevious module, COOPERATIVES will have access to the following information:

The exact quantity and qualityrn of Crops for each farmer before and after harvest, including the value ofrn the Crops that are still in the farmer's hands.
The movement of the Crops fromrn the farmer's collection area to the AMCOS Collection Centers, includingrn the quantity, quality, and value of each farmer's harvest.
The movement of Crops from thern AMCOS Collection Centers to COOPERATIVES' warehouses, including thern quantity, quality, and value of each farmer's harvest.
The identification of all leviesrn and taxes involved in the movement of Crops, including associatedrn transport costs.
The digital payment of farmers,rn including the ability to identify stock balances and sales at any givenrn time.
The control of sales mechanisms,rn including the profiles of all buyers, and the ability to handle automaticrn reconciliation of all transactions.
The automatic production ofrn accounting reports based on Financial Reporting Standards for allrn transactions.
The production of financialrn history for each farmer or buyer at any point in time for investment orrn loan purposes, making it easier for farmers to obtain loans.
The ability for COOPERATIVES torn have its own Customer Relationship Management system, direct marketing torn global buyers, and an automatic procurement tool in the platform forrn buyers globally.

With thisrnmodule, COOPERATIVES will have a comprehensive solution that will enable themrnto make informed decisions, manage their operations efficiently, and providernfarmers with the support they need to grow and succeed.

4. rnGlobal Sourcing Hub of Food &rnAgriculture

The GlobalrnSourcing Hub of Food & Agriculture is a critical component of the Mazao HubrnFarm Management Module. This innovative solution is designed to address thernchallenges faced by businesses in sourcing food and agricultural products andrnat the same time enable Cooperatives and their farmers to get access to directrnmarket.

MazaoHubrnprovide advanced capabilities to create a centralized platform for the safe andrnreliable sourcing of products from cooperatives representing rural farmers.

One of thernkey benefits of this system, is that it provides buyers with extensive marketrnintelligence, allowing them to make more informed decisions. The data isrnderived from the agronomy service management system module, providing buyersrnwith full traceability reports and other important information about thernproducts they are sourcing. This level of detail helps to minimize the risk ofrnfraud, food safety incidents, and other issues that can arise in the sourcingrnprocess.

The GlobalrnSourcing Hub of Food & Agriculture is an essential tool for businessesrnlooking to source food and agricultural products from Cooperative. Byrnleveraging the advanced technologies and expertise of the Mazao Hub, businessesrncan tap into a wealth of information and resources, empowering them to makernbetter decisions, reduce risk, and enhance the sustainability of their sourcingrnoperations. Whether you are a multinational corporation, a small business, orrnan organization looking to source food and agricultural products, MazaoHubrnGlobal Sourcing Hub of Food & Agriculture is the solution you need.

In thisrncase, Cooperatives are now connected directly to the market using MazaoHub Croprnsourcing tool.

BusinessrnSupport and Development systems

Our goal isrnto provide comprehensive support to cooperatives in order to help them become profitablernenterprises that attract potential investors. We firmly believe that technologyrnis the key to unlocking accurate data about these cooperatives, and we leveragernthis technology to offer business support and connect cooperatives with globalrninvestors.

To achievernthis, we have established strong relationships with business professionalrnnetworks, investors, buyers, and other key players in the industry. By workingrnclosely with them, we provide investment write-ups, business events, andrncooperative business marketing forums that invite more investors and businessesrnto engage with these cooperatives.

Our focus isrnon helping each partner cooperative establish manufacturing plants inrnpartnership with more investors, which in turn will enable them to expand theirrnexports and create more opportunities for their member farmers. We offerrnreal-time data to investors to enable them to make informed decisions aboutrninvesting in cooperatives, and we use our expertise to transform theserncooperatives into profitable enterprises.

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Our ultimaternaim is to help these cooperatives achieve long-lasting success and prosperityrnfor themselves and their member farmers. We are committed to providing ongoingrnsupport and guidance to ensure that they achieve their goals, and we believernthat our technology-driven approach will enable them to become investable andrnprofitable enterprises that benefit everyone involved

Unleashing the Untapped Potential of Cooperatives: Why Cooperatives Can and Should Be as Big as Global PLC Companies?