Tanzania Trade Systems

Crops and cooperatives

AMCOS cooperative payments in Tanzania

Last checked 24 October 2026 · 7 sources

Short answer

Agricultural marketing cooperative societies (AMCOS) are primary cooperatives that receive members' crops, store them and sell them on members' behalf 3,4. The Cooperative Societies Act, 2013 (Cap. 211) governs them and gives a society a first charge over produce members deliver 1. Under the Warehouse Receipts Regulations, 2016, all payments for receipted crops must go through a financial institution 2. Dividends or bonuses can be paid only after audited accounts are approved by the general meeting 1.
Law
Cooperative Societies Act, 2013, Cap. 211, amended by Act 1 of 2025 1
Regulator
Tanzania Cooperative Development Commission, headed by the Registrar 1
Auditor
Cooperative Audit and Supervision Corporation (COASCO) or an approved registered auditor 1
Payment channel for receipted crops
Financial institution only 2
Advance limit
75 percent of estimated local value of marketed produce 1
Status
In force, TanzLII version dated 14 March 2025 1

What AMCOS are and who regulates them

The Act sets a three-level structure: primary societies at the grassroots, secondary societies in the middle and a federation at the top (section 19(1)) 1. Primary societies must belong to a secondary society or a federation (section 19(3)) 1. Agricultural cooperatives are one of the registrable types in section 27 1.

Section 6 sets up the Tanzania Cooperative Development Commission as an independent government department. Its functions under section 8 include registering, inspecting and supervising societies and resolving disputes 1. The Registrar, appointed by the President, is the Commission's chief executive (section 10) 1.

How produce is delivered and sold

  • A society that markets produce must state in its by-laws that members have an implied contract to deliver produce to or through it (section 60(1)(a)) 1.
  • That contract gives the society a first charge over the produce (section 60(2)) 1.
  • At the AMCOS, cashew is received, dried, checked for quality and stored, as CBT described in Dihimba in October 2026 4.
  • Receipted crops are sold on the Tanzania Mercantile Exchange. After the buyer's bank payment is confirmed, the seller is paid 7.
  • Advances against marketed produce may not exceed 75 percent of its estimated local value (section 72(6)) 1.

Payment rules

The Warehouse Receipts Regulations, 2016 require all payments to go through a financial institution (regulation 32(2)) and require depositors to give buyers their account details (regulation 33) 2. Supervision committees must see that depositors are paid according to the quality and quantity sold (regulation 11) 2.

Under the Cooperative Societies Act, no dividend or bonus may be paid until the balance sheet is audited and approved by the general meeting (section 77(1)) 1. A society may set off a member's debts against shares, deposits, dividends or bonuses (section 62) 1. The Act text read for this guide has no rule that member payments must go through banks 1.

Audit and oversight

Accounts of non-bank societies must be audited at least once a year by COASCO or by a registered auditor approved by the Registrar (section 55(3)) 1. Audited accounts go to the general meeting within four months after the period ends, with a copy to the Registrar 1. Where the government has given financial help, the Minister may ask for an audit by the Controller and Auditor General (section 55(12)) 1.

The Cooperative Development Commission ran training for AMCOS leaders in Masasi on 3 and 4 October 2026 with the Cashew Board, the Tanzania Federation of Cooperatives, COASCO, the Weights and Measures Agency and TBS. It covered produce handling, weighing and quality 3.

Payment delays and policy changes

In September 2024, a new cashew payment system was announced that would cut AMCOS out of the payment chain, which had caused delays, as reported by Louis Kolumbia of The Citizen. The visible article text did not say how farmers would be paid 6.

On 5 September 2026, the Cashew Board said some processors used influence over AMCOS leaders to get cashew through informal deals, which can delay farmers' payments. It said buyers must pay for cashew and levies before collecting it 5.

Common questions

What does AMCOS stand for?

Agricultural marketing cooperative society, a primary cooperative that markets members' crops 3,4.

Who regulates AMCOS in Tanzania?

The Tanzania Cooperative Development Commission, led by the Registrar, under the Cooperative Societies Act, 2013 1.

Must crop payments go through a bank?

For crops in the warehouse receipt system, yes. All payments must go through a financial institution 2.

Who audits AMCOS accounts?

COASCO or a registered auditor approved by the Registrar, at least once a year 1.

Can an AMCOS pay a bonus before audit?

No. Section 77(1) bars dividends or bonuses until audited accounts are approved by the general meeting 1.

Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email hello@tanzaniatradesystems.com.

Sources

  1. TanzLII: Cooperative Societies Act, 2013, Cap. 211 (version of 14 March 2025)
  2. TanzLII: Warehouse Receipts Regulations, 2016, GN 109 of 2016
  3. Cashew Board of Tanzania: CBT trains AMCOS leaders ahead of the 2026/2027 cashew marketing season (5 October 2026)
  4. Cashew Board of Tanzania: Dihimba cashew farmers prepare for the 2026/2027 sales season (10 October 2026)
  5. Cashew Board of Tanzania: Board to act against processors who break procedures (5 September 2026)
  6. The Citizen, Louis Kolumbia: Tanzania changes cashew payment system to boost farmer earnings (23 September 2024)
  7. Tanzania Mercantile Exchange: Home page, provider page (accessed 24 October 2026)

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