DTIworking on supporting co-ops

Pretoria - The Department of Trade and Industry (dti) is in the process of bolstering support to co-operatives by establishing a Co-operative Development Agency and Co-operatives Tribunal.

"The dti is in the process of identifying programmes and products to ensure that we are supporting sustainable cooperatives that can play a meaningful role in the economic and social development of its members," said Deputy Minister Elizabeth Thabethe.

She was speaking at the launch of the International Year of Co-operatives in Johannesburg on Monday.

"We will be establishing the Co-operative Development Agency that will ensure that financial and non-financial support is more readily available to cooperatives. We are also establishing the Co-operatives Tribunal that will assist cooperatives in addressing and resolving the conflicts within their organisations and will provide judicious management support."

Development challenges faced by co-operatives will also be addressed, with several support interventions designed by the department. The dti will increase funds for the Co-operative Incentive Scheme to ensure that larger numbers of co-operatives are able to gain access to necessary financial support so as to operate their businesses.

"We will be assisting in the promotion of Secondary Marketing Cooperatives to address the challenge co-operatives face in accessing markets," said Thabethe, adding that throughout the course of the year, the department will implement various initiatives to contribute to the United Nations International Year of Cooperatives. 

She said the year will help the department to increase awareness of the role played by co-operatives in the social and economic development of its members.

President of the South African National Cooperatives, Lawrence Bale, called on members of co-operatives to take advantage of the International Year of Cooperatives by coming together to speak in one voice in order to increase their strength and influence. 

Bale called on government to make land available to co-operatives as most of them were in the agricultural sector.

"We need to mobilise co-operatives and give them the necessary support in order for them to grow into sustainable enterprises, which contribute meaningfully to the country's economy," he added.

Chairperson of the National Apex Cooperative Federation of South Africa, Wellings Maseko, appealed to government to place co-operatives at the centre stage of development, ensuring that they are part of the national planning and national budget.

"We need to increase awareness among members of society about the role that co-operatives play in the socio-economic development of our country, promote their growth and ensure that proper policies, laws and regulations are put in place in order promote their formation and growth," said Maseko.

Director of the International Labour Organisation in Pretoria, Nic van Vuuren, said co-operatives play a crucial role in job creation and the alleviation of poverty. 

Last month, the deputy minister highlighted that a large number of co-operatives are failing but that new institutions would help to vamp up support to the sector. - BuaNews