Enhancing the financial sustainability of agricultural marketing cooperative societies (AMCOS) in Tanzania: lessons from longitudinal financial data

Agricultural Marketing Cooperative Societies (AMCOS) play a crucial role in supporting livelihoods, ensuring food security, and driving economic development. This study examines the financial sustainability of AMCOS and investigates the relationship between variables on sustainability. Using an explanatory sequential mixed-methods approach, the research employed a retrospective longitudinal study covering five financial years (2019/2020–2023/2024). Balanced panel data were sourced from audited financial reports of individual 180 AMCOS and annual reports from the regional cooperatives registrar. Descriptive and inferential analyses were conducted using Stata, with the generalized method of moments (GMM) applied to assess the relationship of key variables on financial sustainability. Findings indicate that 61% of AMCOS were financially sustainable, while 39% faced financial instability. Effective cooperative management, asset utilization, government support, and sound debt management were found to significantly enhance financial sustainability. Given the critical role of strong governance, policymakers and regulators are encouraged to enforce robust management practices to strengthen AMCOS as sustainable financial and socio-economic development mechanisms for underserved communities. This study highlights the need for continuous oversight and strategic interventions to enhance the long-term sustainability of AMCOS in Tanzania