South Africa’s government is set to review the country’s Cooperatives Act to ensure a level playing field for the movement. In the last year 220 small scale co-operatives were established in the country; 175 trained; and 115 provided with market access covering both local and international markets, according to the Department of Trade and Industry. Deputy Minister for Trade and Industry, Elizabeth Thabethe said the department has “beefed up its capacity” to focus on the developing the “informal” co-operative sector that will lead to a development programme to support the sector, which also includes survivalist and micro enterprises. A part of this strategy is a review of the Cooperatives Act, which was last updated in 2005. In a statement to the National Assembly, Cape Town, Ms Thabethe said: “In our endeavour to promote the development and growth of co-operatives we undertook to review the Co-operative Act in order to enhance capacity and to streamline the delivery mechanisms for co-operatives; reduce the regulatory burden on co-operatives; and to enhance compliance, coordination, administration and sustainability of co-operatives.” Ms Thabethe also said the country’s significance in the global co-operative movement will be highlighted this month when the ICA’s Global Board Meeting takes place in Cape Town on 21–22 June. The ICA Board will be reviewing the interim report from the Planning Work Group, which will be presenting a Blueprint for a Co-operative Decade to the General Assembly in Manchester. The DTI is also celebrating the International Year of Co-operatives. Added Mr Thabethe: “The theme of the IYC is ‘Co-operative Enterprises Build a Better Word’ and we are going to use the celebration to encourage the growth and establishment of more co-operatives all over the country. “This year, the International Day of Co-operatives will be celebrated in Kimberley in July, where members of co-operatives from all of the country’s provinces will converge and assess the state of co-operatives in the country and whether the spotlight we are putting on the co-operatives during the IYC will result in more and better administered co-operative enterprises.” In March, the Deputy Minister launched the IYC at the National Empowerment Fund offices in Sandton, Johannesburg. Ms Thabethe said the number of registered co-operatives has seen a sharp rise over the past ten years to more than 54,000, but she recognises that this has not necessarily “led to an improvement of the economic and social conditions” and that the government need to be refocused on “promoting co-operatives as sustainable businesses”. In order to achieve this, the government has increased funds for the Cooperative Incentive Scheme to ensure larger numbers of co-operatives are able to gain access to financial support. The department will be supporting secondary marketing co-operatives to address the challenges in accessing markets. A number of programmes and products will also be established to ensure sustainable co-operatives are supported and “can play a meaningful role in the economic and social development of its members,” according to Ms Thabethe. Additionally a new Cooperative Development Agency will ensure that financial and non-financial support is more readily available to co-operatives, while a Cooperatives Tribunal will assist the movement in addressing and resolving the conflicts within their organisations and provide management support.
