Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
1
BRIEFING ON THE DEVELOPMENT AND SUPPORT PROGRAMMES FOR COOPERATIVES:
Empowerment and Enterprise Development Division (EEDD)
PRESENTATION TO THE SELECT COMMITTEE ON TRADE AND PRESENTATION TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS, 25 August 2010 INTERNATIONAL RELATIONS, 25 August 2010
2
Outline
Background InformationBackground Information
Provincial Breakdown: Status of Cooperatives Provincial Breakdown: Status of Cooperatives
National support for Cooperatives National support for Cooperatives
Status of Cooperatives in South Africa Status of Cooperatives in South Africa
Sector Breakdown: Status of cooperativesSector Breakdown: Status of cooperatives
Provincial support for Cooperatives Provincial support for Cooperatives
Contact Details Contact Details
ChallengesChallenges
Way ForwardWay Forward
3
Background Information
The Development of Co-operatives has been identified by the government as one of the critical and viable means to alleviate poverty
On 05 December 2001, Cabinet approved the new mandate for cooperatives development, which was transferred from the Department of Agriculture (DoA) to the Department of Trade and Industry (the dti);
In 2002, SA became the signatory to the ILO recommendations 193;
In 2004, the National Co-operatives Development Policy was developed and adopted by the Minister of Trade and Industry, which laid the basis for the development of the co-operative legislation, strategy and other support interventions;
4
In 2005, the Co-operatives Development Act, No 14 was promulgated by Cabinet and subsequently its proclamation was affected by the President of SA in 2007;
The Act provides a clear strategic approach of government with respect to cooperative development and it sees this task as a shared competency involving all tiers of government. Moreover, in terms of the Co-operatives Act No. 14 of 2005, the dti is expected play a leadership role and facilitate effective coordination as well as reporting on the development of cooperatives in the whole economy; Ensure simpler registration process and management of co-operatives;Ensure development of support programmes by all spheres of government Promote equity and greater participation of targeted groups (youth, women and rural)
Background Information, cont.
5
The Co-operatives Act is being amended. The consultations on the Amendment Cooperative Bill have taken place and the bill is being submitted to Cabinet and Parliament for in principle approval.
The Co-operatives Strategy that seeks to enhance support programmes and institutional capacity aimed at developing co-operatives has been completed and approved by Nedlac and is being submitted to Cabinet for approval as well.
The dti position paper on enhancing cooperative taxation has been completed and submitted to National Treasury to take the lead in taking the process further in terms of amending the Income Tax Act with respect to Co-operatives.
Background Information, cont.
6
the dti, as the custodian of the cooperatives programme, established the National Interdepartmental and Provincial Coordination Committees to coordinate cooperative development activities and programmes with key national and provincial departments.
The Provincial Coordination Committee consist of all 9 departments of Economic Development, whose tasks are to promote and report on coops development in their respective provinces that meet on a quarterly basis.
12 National Departments (DOL, DPW, DSD, DAC, SARS, NT, DHED, COGTA, DAFF, DST, NYDA, DOH) participates in the Interdepartmental Committee and promotes the development of cooperatives and report progress on activities and programmes accordingly.
Background Information, cont.
7
Status of Cooperatives in SA
Historical Trends on Cooperatives Registration: reflected in the CIPRO
data1922 to 1994 decades: 1,444 coops new entrants (1922, 1936 &1981 Coops Acts).
1995 – 2004 decades: 3,362 coops new entrants (57% growth rate in numbers).
2005 to 2007 alone: CIPRO register reflects 12 88 new cooperatives entrants (72% growth rate).
2009 - to date: total: 22030 registered cooperatives
Factors that contributed to high Coops registration during 2005 -
2009Creation of enabling environment through promulgation of the 2005 Coops Act and policy
Provision of financial such as a grant funding from CIS and other funding from Ithala, LIBSA, MEGA, Red Door etc. to Coops.
limited provision of procurement opportunities to coops in few provinces such as KZN, Free State
8
DATES REGISTSRED COOPERATIVES AS PER CIPRO DATA
•
2007 –
2009 •
Total of 22030 registered cooperatives in the CIPRO Data.
2007 –
2009: Current data Economically Operating Cooperatives as per the 2009 the dti Base
Line Study
•
The dti baseline study confirmed only approx 2644 to be economically
operating.
•
CIPRO only have 21 staff members work on registering co-operatives
•
During 2010 only 132 co-operatives complied with the requirement of submitting their financial statements to CIPRO
•
These coops are typically less than 3 years of age with the mean
age of coops being 2 years old and more than 50% of these coops are in rural areas.
•
Most coops are primary start up coops and are very weak and small.
•
The total number of membership for the aforementioned coops is 30 000.
•
Less than 10 members per each cooperative.
•
Female membership was bigger than male membership in 64% of co-operatives surveyed and mostly participate in textile, service and agricultural co-operatives.
•
Youth between 16 and 34 comprise 40% of the noted membership
Status of Cooperatives in SA
9
Provincial Breakdown: Status of Cooperatives
Province Current Data from CIPRO Register
National PictureNo of Surviving Co-ops
No of dead Co-ops
Survival Rate
Mortality rate
KZN 8697 1044 7653 12% 88%
EC 4124 287 3957 7% 93%
WC 1003 69 934 7% 93%
NC 798 20 778 2.5% 97.5%
Limpopo 1779 405 1474 22% 78%
Mpumalanga 1396 187 1309 12.5% 87.5%
Gauteng 2265 394 1971 17% 83%
Free State 850 71 829 8% 92%
North West 1208 167 1090 13% 87%
National Total 22030 2644 19386 12% 88%
Source : CIPRO Current Register and DTI Baseline Study
10
Sector Breakdown: Status of Cooperative in SA
Coop Sector Percent
Food & Agriculture 29.71Service 14.85Construction 9.37Textile 8.7Multipurpose 9.55Manufacturing 5.01Arts & crafts 3.78Social 3.41
Home Industry/Baking 3.41
Transport 3.03
Coop Sector PercentTrading 2.18
Financial / credit services 2.08Housing 1.7
Carpentry 1.04Consumer 0.66
Burial 0.66Mining 0.57
Recycling& waste management 0.28
Trading 2.18Financial / credit
services 2.08
TotalTotal 100%100%
CIPRO data: Cooperatives contribution to the country’s GDP in 2009
GDP contribution:GDP contribution:Status of Cooperatives in SA Status of Cooperatives in SA
Sector R Value Percentage
Agriculture
Farming Requisites R 205 7771 102 16.9%
Fruit and Veg R 512962480 4.2%
General Products R 217899729 1.9%
Grain and Oil Seeds R 4266267328 35.1%
Insurance R 645 9575 0.05%
Meat R 179994646 2%
Timber R 159 865 3351 13.1%
Wine R 749655635 6.1%
Trading Co-ops
Buying Aids R 22 74191190 19%
Home Industries R 12476540 0.1%
Mutual Benefits R 27854695 0.55%
Financial Services R 10 098 208 1%
TOTAL R 12 164 976 479 100%
12
Cooperatives Strategy and Bill are proposing the establishment of new institutional capacity to improve efficiency in the provision of support services to cooperatives;
Establishment of Cooperative Development Agency: provision of increased financial and non-financial support;Establishment of Cooperative Academy: provision of increased education and training support services Establishment of Cooperative Tribunal: provision of compliance and enforcement of the Coops Act, judicious management, arbitration and conflict resolution support services;Establishment of the Cooperative Council: advise the Minister, recommend policy improvement and lobby all tiers of government on cooperatives development.
Cooperatives Banks Act, No 40 build the foundation for establishment of Cooperative Banks Agency, whose tasks are to regulate and support the development of cooperative banks
New Institutional Mechanisms to New Institutional Mechanisms to assist Cooperative Development assist Cooperative Development
13
Provision of Access to market to Cooperatives in SA
Access to Market for CooperativesAccess to Market for Cooperatives
Year Activity
2004 Research: Scoping report of 100 cooperatives identification of their needs
2005 Analytical report on cooperatives in 5 provinces
2008 6 cooperative seminars held in partnership with ILO including various stakeholders covering a number of topics:
3 cooperative participated in the ICA Expo in Portugal
International Cooperative Conference held successfully in Tshwane: 2300 delegates attended and international experts (i.e. Canada, Africa and EU)
Inter-Ministerial Conference on Cooperatives attended in Kenya, Nairobi
The dti hosted China Federation of Marketing and Supply Cooperatives, which established relations with cooperatives in South Africa
14
Provision of Access to market to Cooperatives in SA
Access to Market for Cooperatives, cont. Access to Market for Cooperatives, cont.
Year Activity
2009 6 workshops held for secondary cooperatives in Gauteng registering a database of 300 primary cooperatives
124 workshops across all provinces covering many local municipalities providing education and training on what is cooperatives and how do going about registering it.
Exhibition and celebration of International Cooperative Day held
in KZN: 2000 delegates and 200 cooperative exhibitors from 8 provinces. 13 coops were given
procurement opportunity by providing various services relevant to the event.
Attended International Cooperative Alliance in Lesotho
National baseline study report on cooperatives produced revealing 2 644 coops operating in the economy.
2009 -
2010
46 cooperatives supported to participate in international exhibitions (i.e. 28 Portugal, 10 Italy, 8 Lesotho, 4 Kenya and 2 China)
2 cooperatives exhibited their products in Mzansi
Stores, Sandton
and 4 participated in the Decorex
exhibition that took place in JHB
15
3 Provinces have finalised their co-operative strategies, which have been approved and are already implementing
Mpumalanga; Eastern Cape, Limpopo
5 provinces have drafted their co-operative strategies and awaiting final approval
Western Cape, KwaZulu Natal, Northern Cape, North West and Gauteng
1 Province has drafted Terms of Reference to appoint a service provider to assist with the development of the provincial strategy
Free State
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Status on the formulation of Provincial Strategies for Cooperatives
16
Cooperative Incentive Scheme: Administered by TEO Cooperative Incentive Scheme: Administered by TEO
National Financial Support Programme for Cooperatives
2008/09 financial cycle– Amount disbursed to coops: R14.1 million – Beneficiaries and outcome: 93 coops have
been supported and 503 jobs created.
2009/10 financial cycle
–
Budget allocation: R 34 million
–
Amount disbursed: R 11,9 million
–
Beneficiaries and outcome: 120 coops supported and estimated 600 jobs created
: 2006 -2009: total amount disbursed: R61 million benefiting 311 cooperatives
Estimated jobs created: 1555.
16 officials employed by the CIS directorate
Budget for 2010/2011 is R41 million
2006 to 2008 financial years Amount allocated : R41.6 million Amount disbursed to Financial Services Cooperatives (FSC), R18.7milllion:
Grants: R9.6 millionLoans : R9.1million
Beneficiaries outcome : 32 FSC received capital and 6500 people benefited
2009/10 financial year Amount disbursed : R10millionBeneficiaries outcome : 40 FSC received capitalTotal to date disbursed to date : R51.6 million
South African Micro Apex Fund (SAMAF)South African Micro Apex Fund (SAMAF)
National Financial Support Programme for FSC
18
Small Enterprise Development Agency (Small Enterprise Development Agency (SedaSeda) )
Business Development Support Programme for Cooperatives
Name of the programme
Financial cycle
Beneficiaries and Outcome
Coops Business Support Services
2005/06 151 Cooperatives were provided support
2006/07 580 cooperatives were provided business support Trainers from 51 FET’s were trained on the basic cooperatives concept
2008/09 2 502 were given business support Awareness Support
Service2005/08 12 Awareness workshops were carried out benefiting 275
people on cooperatives Capacity building 2006/07 About 500 officers and individuals at local level have been
trained across the provinces on the Train a Trainer cooperatives programme to enable them to assist cooperatives in their regions. 270 Community Development Workers (CDWs) have been trained on the cooperatives concept in all provinces.
19
Financial and NonfinancialSupport Programme for Cooperatives
Name of the Agency
Programme Financial Period
Amount disbursed Benefits to Cooperatives
YOUTH DEVELOPMENT AGENCY (NYDA)Previously known as UMSOBOMVU YOUTH FUND
Enterprise Loans
2006/08 R 10,057,500 loans disbursed 94 youth owned cooperatives
2005/08 UYF disbursed R3,213,189 to SACCOL for lending to SACCO’s (2005 to date)
SACCO’s lended to 416 micro enterprises creating 1,021 jobs.
2009 UYF disbursed R10 mil to co-operatives
UYF lent SACCOL 1.8 mil in loans
Business Development Services provided
150 youth co-ops supported providing approx 600 jobs
450 loans provided creating approx 1350 jobs
33 businesses accessed this service
National Youth Development Agency : Supporting Coops National Youth Development Agency : Supporting Coops
20
Name of the Agency
Programme Financial Period
Amount disbursed Benefits to Cooperatives
NATIONAL EMPOWERMENT FUND (NEF)
Imbewu
fund –
Loan product
2006/07
2009/2010
R2,3m disbursed
Awaiting approval on big project in Mpumalanga valued at 20 million
9 cooperatives loaned at prime rate.
National Empowerment Fund: Supporting Coops National Empowerment Fund: Supporting Coops
National Financial Support Programme for Cooperatives
21
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Agriculture
Cooperative Directorate established
2006/07 MAFISA Loan R11m disbursed.
28 cooperatives and self-help groups supported financially and 857 jobs created. 827 primary & 30 secondary cooperatives assisted with registration
2007/08 MAFISA Loan
Cooperatives Data System
(CODAS)
R15m disbursed
33 coops and self-help groups were supported financially and 5176 jobs created
The data system assisted with profiling 1,782
2008/09 Financial Support
R38m disbursed
49 coops funded consisting of 700 farmers, creating 715 direct jobs and 459 indirect jobs.
Have registered 9 secondary coops for marketing
Provided 32 primary coops with training with 165 members
Status on the Coops: Support From Dept of Agriculture, Forestry
and Fisheries
22
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Agriculture
Cooperative Directorate established
2009/10 MAFISA
Financial Support
Non-Financial Support
19.7 mil in 2009
339 cooperatives and self-help groups supported
financially and 857 jobs created.
162 co-operatives assisted with registration
9 secondary co-ops facilitated for bulk buying purchasing
Special Project
Procurement Opportunity
Launch of CODAS system by the Department
Dept in the process of looking at developing programme
for procurement
Total amount disbursed R83.7m
Status on the Coops: Support From Dept of Agriculture, Forestry
and Fisheries, cont.
23
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Status on the Coops support from other National Departments
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Department of Co-operative
Governance and Traditional
Affairs
2009/10 Awareness Programme
Encouraging each ward to have LED project and products driven and led by co-operatives
Development of a Co-operatives Strategy
No dedicated budget
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Minerals & Energy
2008/09
2009/10
Beneficiation & energy
centre support
Energy Centre
Support
Financial Support
R 39m disbursed
Non Financial Support
None
Supported 10 jewellery
cooperatives coops to the tune of R9m financially and non-financially.
Supported five integrated energy centres
to the tune of R30m.
2 co-operatives assisted and reviewing strategy on IECs
Total amount disbursed R39million
24
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Status on the Coops support from other National Departments
Department Financial Period
Programme Amount disbursed Benefits to Cooperatives
Arts and Culture 2008/09
2009/10
Investing in culture
Financial Support
R11.5m disbursed
R12.1mil disbursed
23 coops consisting of 460 members supported financially and non-financially.
22 co-operatives assisted financially
Total amount disbursed R23.6. million assisted total of 45 cooperatives
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Public Works 2008/09 EPWP Financial SupptR10m
disbursed
261 coops benefited from financial support
2009/10 EPWP R11.1mdisbursed
Contracts being awarded to 11 co-operatives in the cleaning & gardening sector, school nutrition and environment
Total amount disbursed R21.1 million
25
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed Benefits to Cooperatives
Labour 2008 to 2009
2009/10
Skills developmentManagement and technical skills
Skills DevelopmentProgramme
Strategy and Legislation
Financial Support
R26.7m disbursed.
R32m disbursed
Non Financial Support
R400k
355 cooperatives with a total membership of 5570 co-ops assisted
367 co-ops assisted financially
Development of co-operative strategy and legislative framework
Total amount disbursed R59.1m
Status on the Coops supportfrom other National Departments
26
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed Benefits to Cooperatives
National Treasury 2007/2008
2009/2010
• Developed the Cooperatives Banks Act, No.40 of 2007.
•The Board and Managing Director for the Cooperatives Bank Development Agency (CBDA) appointed.
• CBDA is in the process of designing support programmes and have started accepting applications for cooperative bank registrations.
A baseline study undertaken to look at institutional assessment of 17 co-ops. Rules and regulations published for Co-ops13 provisional applications received by the CDBA4 staff members appointed to increase capacity within organisation
Status on the Coops supportfrom other National Departments
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Social Development
2008/09 Poverty Relief Project
R26 m disbursed
645 poverty relief projects converted into cooperatives.Estimated jobs created are 3225.
Total amount disbursed R26 million
27
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
KZN Economic Development
Total staff: 15
2005/07 ITHALA Bank Loan & grant
R163 154 871.62 1175 cooperatives funded of which 823 are operational and remaining failed
6761 cooperatives trained by FET Colleges
9 404 jobs created in the following sectors: catering; furniture; textiles; services
2007/08 ITHALA Bank Loan & grant
R200m disbursed 1500 cooperatives funded
3500 cooperatives trained
450 jobs created
2009/10
2010/2011
ITHALA Bank Loan & grant
R 91m allocated
R86 m disbursed
R5m allocated for forming Coops College
Non Financial Support Procurement opportunities to the value over R21mil
Office of the premier championing the one home, one garden programme
Delegation went to Kenya for training
Total amount disbursed R454 m (five years)
Status on the Coops supportfrom Provincial Department
28
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements Department Financial
PeriodProgramme Amount
disbursedBenefits to Cooperatives
GAUTENG
Total staff - DED: 1 GEP: 1
GEP : 1 with assistance of 6 officials in regions & 1 in DED
2006/07 Gauteng Economic propeller
R2mdisbursed
8 cooperatives financially supported creating 86 jobs primarily in the manufacturing sector
2007/082008/09
2009/10
Training andAssistance on Procurement
Non-Financial Support
R1.25 million
R1.25 million
Procurement opportunities (to benefit cooperatives) through Chris Hani Baragwanath being negotiated
968 co-operatives assisted with training as well as facilitation of 90 co-ops with registration
Total amount disbursed R 4.5m
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Northern Cape 2008/09 Facilitation None Provided facilitation support to 50 cooperatives so far (i.e. registration, business plan dev) and funding through the dti
118 jobs created in the following sectors: mining; farming; textiles; energy; creative industries
Status on the Coops supportfrom Provincial Department, cont.
29
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
North West 2008/09
2009/2010
Financial support
Financial Support
Non Financial Support
R3m
R10m
R2.5m
Supported 1 Youth owned coops piloted to the tune of R3m
Municipalities have provided financial support to 50 coops to the tune of R10m.
Supported 2 mega projects, R2mil allocated towards the building of factory for Wild Silk Co-
op and R500k towards Madikwe
Sisal Co-op
41 co-ops were registered and 4 co-ops assisted with CIS funding
Sectors assisted were in Agriculture, Services and Clothing and Textiles
9 awareness sessions held
Total Amount Disbursed R 15.5 Million
Status on the Coops supportfrom Provincial Department, cont.
30
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Eastern Cape
2008/09
2009/10
Facilitation
Imvaba
Coop Fund (50m
budget)
Non-Financial Support
Procurement Opportunities
Non-
Financial Support
Financial Support
Facilitated access to funding for 2 cooperatives through the dti’s CIS.
R19 million has been disbursed to 36 co-
operatives
R600k has been used for Marketing and Communications through facilitation of workshops in the region
In the process of developing a strategic framework to look at procurement opportunities.
Total Amount Disbursed R19.6m
Status on the Coops supportfrom Provincial Department, cont.
31
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Free State 2008/09
2009/2010
Facilitation of registration
Financial Support
Non Financial Support
None
R6.5 m
Facilitated the registration of 80 cooperatives and in the process of facilitating the school nutritional contract to 20 cooperatives.
3 special projects co-ops assisted,3 co-operatives assisted in Poultry, Fish breeding and bricklaying
Facilitated the registration of 102 co-operatives to assist on the nutrition programme59 information sessions held
Total funds disbursed R6.5m
Status on the Coops supportfrom Provincial Department, cont.
32
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Mpumalanga 2008/09
2009/10
Financial Support
Financial Support
Procurement Opportunity
R5m disbursed
R1.7mil
Support to 20 cooperatives by various institutions and departments within the province.
2 co-ops were funded through loans through MEGA
4 co-ops were provided with procurement opportunities in catering at the value of R90k
Total amount disbursed R6.790m
Status on the Coops support from Provincial Department, cont.
Department Financial Period
Programme Amount disbursed
Benefits to Cooperatives
Limpopo 2005 -
2009
LIBSA R90m disbursed
76 cooperatives funded in various sectors
2000 jobs created and sustained
More than 500 cooperatives received non-financial support.
Total amount disbursed R90m
33
The Cooperatives Act, No.14 of 2005 legislates that all spheres of government design and implement support measures for cooperatives. Coordination with the respective
departments rest with the dti to ensure fulfillment of these requirements
Department Financial Period
Programme Amount disbursed Benefits to Cooperatives
Western Cape 2008/09
2009/10
Financial and non-financial
Support
DBSA
R300k disbursed
R2m disbursed
R1.3 mil disbursed through voucher system
Non Financial Support
Support to 2 coops financially.
Trained 51 coops through 97 sessions.
12 co-operatives assisted financially
180 co-operatives assisted with non-
financial support and 2 articles done in Big News focusing on Co-operatives
Total amount disbursed R3.6 m
Status on the Coops support from Provincial Department, cont.
34
The Department of Trade and Industry is providing support to cooperatives, albeit at insufficient levels to make a substantial required impact.National and Provincial Departments have started to seriously support cooperatives in their spheres of influence. However, the support is still at a lower base. Few municipalities have already started to also contribute to the task of supporting cooperatives. However, this areas still requires further attention and strengthening. Weak APEX movement structureOfficials at all tiers of government and private sector have a limited understanding of co-operatives as a form of business and this affects support and development of co-opsInstitutional capacity to deliver on co-ops remain inadequate and is a matter that requires urgent resolutionsConsultations and responses to requests for information from other national, provincial and local levels of government takes longer than expected impacting on deliveryInadequate human and provision of financial resources limiting implementation.
Challenges
35
As from 2005 - 2009: almost a R1 billion spent on cooperatives through the fewnational Departments and Provincial Department of Economic Development. However, to have a bigger impact more is required in the future.Strengthening the capacity of the dti to lead and deliver on the development and support for cooperatives so as to increase output and impact.
Strengthen the capacity of existing coordination committees (i.e. interdepartmental; provincial committees).
Clear reporting of progress to be emphasised in committees.
Amendment of the Cooperative Act to include:The establishment of a Cooperative Development Agency, to:
provide financial and non-financial support; manage the Cooperative Development Fundassist with compliance training and registration
Way forward
36
Amendment of the Cooperative Act to include:The establishment of a Cooperative Academy to deal with standards and education and training.The establishment of a Cooperative Tribunal as a unit within the dti to:
Deal with conflict resolution; investigations, pro-active inspections and enforcement with legislation;
Assist with compliance with Cooperative Act; and
Assist the registrar of cooperatives with the task of up-dating statistics, assistance with winding-up; de-registrations and liquidations.
The Provincial and local government need to take a more active role as implementing agents in the form of support and development of co-operatives
Way forward, cont.
37
Name: Maria NtuliTitle: Deputy Minister of Trade and Industry Telephone Numbers; +27 12 394 1489 Fax Numbers: +27 12 394 2489E-mail address: [email protected] Department of Trade and Industry
Contact Details
38
THANK YOUTHANK YOU