THE ROLE OF COOPERATIVES AS ENGINES OF ECONOMIC DEVELOPMENT IN THE SOUTH AFRICAN COMMUNITIES . BY

THE ROLE OF COOPERATIVES AS ENGINES OF

ECONOMIC DEVELOPMENT IN THE SOUTH AFRICAN COMMUNITIES.

BYSANACO

OUTLINE

SANACO

POLICY FRAMEWORK

OBJECTIVES

SUCCESS AND IMPACT

CONCLUSION

South African National Apex Tertiary Co-operative

• SANACO is an autonomous association of secondary and tertiary cooperatives united voluntarily to serve the socio-economic interest and aspirations of all cooperatives in the country.

• It is the embodiment of the cooperative movement in the country.

• It is a full member of the International Cooperative Alliance, a global representative body of cooperative.

• Participate in NEDLAC

• Currently the law makes provisions for three levels of cooperatives starting with the primary, secondary and the tertiary.

• SANACO is currently registered as the tertiary cooperative until the amended law is operationalised.

• Annually, working closely with the department relevant Cooperatives under the stewardship of SANACO celebrate the international day of cooperatives and in the recent celebration attended by more than 600 cooperative structure SANACO was reaffirmed by the cooperatives across the country as the single apex body as envisaged by the amendment Act of 2005.

• This year SANACO was formed in 2009, 01st October. Convenes annual compliance conference

Our Common Agenda

• The majority of the communities are facing hardships, unemployment, poverty and inequality and

hence the government’s decision to make ‘coops’ as agents of social economic development.

• The South African government decided during the Presidential Growth and Development Summit

held to endorse special measures to support cooperatives as part of strategies for job creation in the

economy.

• In order to address the high rate of unemployment and poverty, the government came up with

the concept of “Vukuzenzele” which implies that people must be initiative and do things for

themselves instead of waiting for “hand outs”.

Policy Framework

• In 2004 the new democratic government launched the Cooperatives

Development Policy and later in 2005 promulgated the cooperatives Act,

No. 14 of 2005 as amended.

• In 2010, the Department of Trade and Industry launched the Integrated

Strategy on the Development and Promotion of Cooperatives which sets

out an implementation framework of the policy and the Act.

OBJECTIVES OF SANACO

To advance and empower all member cooperatives and their business To engage and lobby all organs of state, private sector and stakeholders on behalf of

cooperatives To play any other deemed to be the role of an Apex Cooperative Movement of South Africa to

advance the development of cooperatives As an apex it shall act as a mouthpiece of the cooperatives in connection with any other matter

of mutual interest to the cooperative movement in general To organize and represent the interest of cooperatives existing within the different sectors and

regions of their functionality To facilitate education and training for cooperatives Strive to establish and maintain an audit fund to assist cooperatives to comply with the law To represent the cooperative movement of South Africa in the Continent and Worldwide Strive to advance the definition and principles of cooperatives as outline in the Coop Act of the

country To cooperate and/or collaborate with other formations in building the South African economy

through cooperatives To establish a cooperative development trust to mobilize support for the cooperative movement

development.

SANACO OPERATIONS

The strategic pillars for the support programmes for cooperatives

To increase non-financial support services to cooperatives i.e working with various

department and other stakeholders

To increase a demand for cooperatives products and services i.e procurement

dedicated to cooperatives

To improve sustainability of cooperatives i.e mentoring and monitoring of the

cooperatives

To increase financial support services to cooperatives i.e grants and loans

5 KEY OPERATIONAL ACTIVITIES

• Representation of Cooperative interest (advocacy and

lobbying

• Compliance focusing on Auditing

• Cooperative Education and Training

• Consulting services

• Support for Cooperatives

ACTIVITY 1

On Representation

• Communication: Information on current developments within

the cooperatives movement as well as on current political

issues our members

• Politics: Development of positions in the interest of

cooperatives; by having regular meetings with government

• Committees: Positioning cooperatives interests in Executive

Committees

ACTIVITY 2

On Compliance

• Mandatory: Auditing of annual financial statements as

required by the legislation

• Additional Service: Comprehensive audit of all areas of the

business with the aim to support the cooperatives

• New members: Audit for cooperatives in the foundation phase

• High quality standard: Engage on regular peer reviews for

cooperatives development

ACTIVITY 3

Cooperative Education and Training • Cooperative Academy: Ensure that proper

cooperative training and education institution are accredited

• Human Resource: Ensure proper and qualitative employee training for cooperatives development

• Seminars and Workshop: Ensure that personal and professional training, tailormade programs are developed

ACTIVITY 4

On Consulting Services • Business: Provide individual consulting with cooperatives • Human Resource: Recruiting and employee satisfaction for

cooperatives development • Legal: Ensure that proper legal advice is provided to

cooperatives in line with their sectors • Tax: Ensure that cooperatives are Tax Compliant • Networking: Create a platform for cooperatives to maintain

constant interaction and cooperation

ACTIVITY 5

Our Support • Information: To provide regular briefings on new regulations

that affect cooperatives development • Exchange: Allow cooperatives to exchange views and ideas on

strategic challenges that are facing each sector of the cooperative

• Advice: In special cases the mergers that will have a qualitative contribution in the cooperative

• Foundation: Provide the necessary support for cooperatives at the initial stages

ACHIEVEMENTS

• Increased awareness about the cooperatives concept

• A comprehensive support policy framework in place i.e ILO Recommendation

• Hosted the cooperative international events i.e ICA General Assembly, BRICS Cooperatives leaders

meeting and SADCCF

• Established women and youth cooperatives structures

• Provincial cooperative structures for coordination and interaction with provincial as well as local

government have been establised

• International and national expos for cooperatives i.e exhibitions

• Availability of training programmes for cooperatives i.e 2011 National Cooperative Conference

• Availability of funding to cooperatives with access challenges

• Signed partnership agreements with government departments as well international organisations

ACHIEVEMENTS IMPACT

• Increase cooperative registration• Development of women cooperatives• Employment for cooperative members • Skills development for members of

cooperatives • Unity amongst cooperatives

CONCLUSION

• The communities must be developed in various ways:

inter-alia Housing and Construction, agriculture and

agro-processing, manufacturing, mining, arts and

culture, tourism, retail services, financial services, etc.

• It is clear that if all cooperatives in South Africa can

plan strategically and back their plans with business

and operational details, they will transform the country

tremendously.

CONCLUSION

THANK YOU

www.sanaco.coop

info@sanaco.coop

diteko@sanaco.coop