Member ownership and democratic sustainability in primary agricultural marketing co-operative societies in Tanzania: a case study of Bukoba and Moshi districts

Abstract

In Tanzania, member ownership in primary Agricultural Marketing Co-operative Societies (AMCOS) is imperative to ensure democratic sustainability. Various efforts have been made to ensure primary AMCOS are governed by democratic practices which are based on member owned practices. But such democratic sustainability is still far from being realised. The general objective of this study was to analyse member ownership factors that influence AMCS practice in Tanzania to attain democratic sustainability of these member owned institutions. The specific objectives were to: examine members’ participation in decision making, examine the accountability of the board and management to members, determine internal and external interfaces which promote co-operative sustainability and determine members’ views on factors for AMCOS sustainability. A cross-sectional design was used whereby 400 AMCOS members were selected from ten primary AMCOS of Bukoba and Moshi Districts from September 2015 to February 2016. The study used primary data which were collected through a household survey, focus group discussions and key informant interviews, while documentary review was utilized to collect secondary data. The findings revealed that, on members’ participation in decision making, members were found not fulfilling their membership legal obligations, which conflicts with ownership status. The rights of members to engage in decision making were found to be limited. About accountability of the board and management to members, they were more accountable to the Union in Bukoba District primary AMCOS as compared to Moshi District where they were more accountable to members. The findings on AMCOS sustainability revealed that understanding of the members on the roles of board and functions of managers was low. Furthermore, members’ views on chances of democratic sustainability revealed that the democratic sustainability would happen for years to come and AMCOS members had a good hope in their organisations. The study concludes that the democratic practice systems that entail accountability in primary AMCOS are the factors that make members to own their institutions. Also, the study concludes that absence of managerial accountability to members guided by policies, laws and regulations is an important component limiting members’ ownership of AMCOS; these governing instruments are not adhered to by members, Boards, managers, government and other co-operative stakeholders. Also, members’ views on projecting democratic governance availability indicated a future hope for existence of a sustainable AMCOS; the study concludes that employing tangible strategies for primary AMCOS democratic sustainability is important in order to build existence of sustainable member owned society. Among other things, the study recommends education to be provided to members so that they can increase their level of ownership capacities when participating in different decision making sessions. The study also recommends that the democratic sustainability of primary AMCOS will be achieved if members participate fully in creating solutions to their challenges and become part of strategic implementation; this will increase co-operative society ownership which is governed by members.