Status of Co-operative Support and Development in South Africa, 21 February 2012, Portfolio Committee on Economic Development, Cape Town 1
TABLE OF CONTENTS A. Background to co-operative development in South Africa B. Co-operative registration statistics C. Co-operative support programmes D Challenges E. Co-operative sustainability 2
A. BACKGROUND 1. The Development of Co-operatives has been identified by the government as one of the critical and viable means to create employment and alleviate poverty. 2. 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). 3. In 2002, SA became a signatory to the International Labour Organizations, Recommendations 193: on the Promotion of Co-operatives. 4. 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. 3
A. BACKGROUND 5. As the lead department responsible for co-operative promotion and support, the dti has led the creation of an enabling environment to ensure the establishment of co-operatives; 6. A conducive environment for co-operative development has been created through the: a. Cooperative Policy b. Cooperative Act No. 14 of 2005 c. Integrated Strategy on the Development and Promotion of Co-operatives d. Cooperative Amendment Bills e. Cooperative Banks Act No. 40 of 2007 7. In addition to the dti s role the Co-operatives Act and Policy clearly outlines the role of other government departments to support co-operative development. 8. Provincial governments have been encouraged to develop their own Cooperative Strategies that will guide the promotion and development of cooperatives at this level. 4
A. BACKGROUND 9. In 2005, the Co-operatives Act, No 14 of 2005 (the Act) was promulgated by Cabinet and subsequently proclaimed into law by the President of SA in 2007 10. The Act provides: 10.1 a clear strategic approach of government with respect to co-operative development; 10.2 that the dti will play a leadership role and facilitate effective coordination as well as reporting on the development of co-operatives in the country; 10.3 ensures simpler registration process and management of co-operatives; 10.4 ensures development of support programmes by all spheres of government; 10.5 promotes equity and greater participation of targeted groups (youth, women and rural) 11. The Cooperative Amendment Bills in addition to other matters, makes provision for: the establishment of the Cooperative Development Agency; the establishment of the Co-operatives Tribunal; and ensures compliance with the principles of intergovernmental relations and provides for 5 intergovernmental relations within the co-operatives sector.
A. BACKGROUND 12. The dti, as the custodian of the national co-operatives programme, established the National Interdepartmental and Provincial Coordination Committees to coordinate co-operative development activities and programmes with key national and provincial departments. 13. The Inter-provincial Coordination Committee consist of all 9 provincial departments of Economic Development, whose tasks are to promote and report on coops development in their respective provinces; the Committee meets on a quarterly basis. 14. The Inter-departmental Committee is attended by 12 national line departments (DOL, DPW, DSD, DAC, SARS, NT, DHED, COGTA, DAFF, DST, NYDA, DOH) and promotes the development of co-operatives and reports on the progress of activities and programmes accordingly. 6
United Nations International Year of Co-operatives, 2012 A. BACKGROUND 1. The United Nations General Assembly, declared 2012 the International Year of Co-operatives 1.1. This will provide us with an ideal opportunity to create an awareness about cooperatives and their contribution to social and economic development. It will also afford us an opportunity to concretise partnerships and relationships with all development partners and government agencies, who are promoting and supporting co-operative development. 1.2. During this year we will be implementing programmes throughout the country to place more emphasis and focus on co-operatives. 1.3. One of the key activities for this year is the hosting of the International Cooperative Alliances Global Board Meeting in Cape Town from 20-23 June. 1.4. In addition, we will be celebrating the International Day of Co-operatives on 7 July in the Northern Cape Province 7
United Nations International Year of Co-operatives, 2012 Activities schedule for South Africa: Calendar of activities for the IYC Month Date Activity Location Stakeholders A. BACKGROUND February 3 Establishment of UN International Year of Cooperatives UN IYC Coordination Committee Pretoria National departments, cooperative stakeholders 3 Media Networking Session: UN IYC, 2012 Empangeni Media in the province 23-24 Media Networking Session: UN IYC, 2012 Bethlehem Media in the province 27-28 Co-operative Business Indaba Newcastle Media, cooperatives; cooperative stakeholders 28-29 3 Contralesa cooperative awareness programme NW: Pilanesburg / Taung cooperatives and development partners 28/02-10/03 Mission to China: 3 rd BRICS meeting in China China The dti; wine-producing cooperatives 1-3 Contralesa cooperative awareness programme NC: Kuruman, Stuurfontwin cooperatives; development partners 12 Launch of UN IYC in South Africa by dti Johannesburg Media, Co-operative Apex bodies, ILO 22-23 Media Networking Session: UN IYC, 2012 PE Provincial media, the dti March 26-27 National Agricultural Cooperatives Indaba Johannesburg Cooperatives; cooperative stakeholders 27-28 Contralesa cooperative awareness programme Mp: Moretele, Bushbuckridge cooperatives; development partners 29-30 Contralesa cooperative awareness programme Lim: Thohoyandou, Giyani cooperatives; development partners 29-30 Media Networking Session: UN IYC, 2012 Mafikeng Provincial media, the dti tbc Launch of the Cooperatives Strategy for the NC NC cooperatives; provincial stakeholders 8
United Nations International Year of Co-operatives, 2012 Activities schedule for South Africa: Calendar of activities for the IYC Month Date Activity Location Stakeholders A. BACKGROUND April 16-17 Contralesa cooperative awareness programme KZN: Durban, Sisonke cooperatives; development partners 19-20 Contralesa cooperative awareness programme EC: Nqandu, Dimbaza co-operatives; development partners 10, 11 Provincial Financial Services Cooperatives workshopec SACCOL; CBDA; SAMAF; Treasury, sector departments, ECRF; ECDC; dti; May 16-16 Contralesa cooperative awareness programme FS: Qwaqwa, Gariep cooperatives; development partners 17-18 Contralesa cooperative awareness programme Gauteng: Tembisa, Pretoria cooperatives; development partners June 5-6 Contralesa cooperative awareness programme WC: CT, George cooperatives; development partners 7 Launch of BCM CDC EC BCM; Secondary cooperatives, IFCD, sector departments, DTI coop unit, 20-23 Hosting of the International Cooperative Alliance s Global Board Meeting Cape Town ICA Board members; cooperative exhibitors, the dti July 7 Celebration of the International Day of Cooperatives Kimberley DTI. National Departments, Provincial Departments, ICA, SEDA, SANACO, NCBI, etc. 15-17 AgriFood Manufacturers & Producers Gauteng cooperatives 21-24 Beckmans Summer Show Chicago cooperatives 9
United Nations International Year of Co-operatives, 2012 Activities schedule for South Africa: Calendar of activities for the IYC Month Date Activity Location Stakeholders A. BACKGROUND August 8-12 Decorex Gauteng Johannesburg cooperatives 6-9 Macef Show Milan cooperatives 6-7 Launch of the EC Cooperative Movement EC, East London Secondary Coops, SANACO, SACCOL, CBDA, DTI, sector departments September October November 10-18 Regional Cooperative Workshops/ Information dissemination EC ECDC; IFCD; SAMAF; SEDA; DTI-TEO; NYDA; E.C Coop Movement, CBDA, SACCOL 21-29 World of Perishables Show Dubai cooperatives 25 Launch of the Provincial Chapter of the EC, Sterkspruit FSC s; SACCOs; SAMAF; CBDA; SACCOL; ECDC; Cooperative Banking Institution Municipalities; districts; sector departments tbc Buy local Indaba cooperatives 24-25 3rd Provincial Cooperative Indaba EC, East London The DTI, COGTA, SANACO; EC Coop Movement; Higher Learning Institutions, ICA, SADC Cooperative Federation, Municipalities, ECHTL; ECDC, CDC s, SITA s, FET s; Prov 30/31 Launch of the National Cooperative Banking Institutions 31-2/11 ICA Conference and Exhibition Manchester cooperatives CT CBDA, NCBA, Treasury; Provincial Chapters of Cooperative Banking Institutions, SACCOL, ICA, ETC 1-2 Launch of O.R.Tambo CDC EC, OR Tambo O.R Tambo DM; Local Municipalities, Secondary Coops, Ntinga Development Agency, Organized Business, CBO s and NGO s; Organized Labour, SEDA, network of service providers, Abakwezeli; IFCD December 1-9 Artigiano In Fiera Show -on demand only Milan co-operatives 10
B. COOP REGISTRATION STATS Number of co-operatives registered per province in terms of the Co-operatives Act, 2005 (including some of the Co-ops that were registered under the previous Co-ops Act, that have now changed their registration numbers), as at 10 February 2012 Total number of registered co-operatives, as at 31 January 2012: 54,461 Province Number of Co-ops Registered Kwa Zulu Natal 11,820 Gauteng 7,907 Eastern Cape 6,544 Limpopo 4,576 Mpumalanga 3,296 North West 2,540 Western Cape 1,684 Free State 1,644 Northern Cape 709 TOTAL 40,72011
B. COOP REGISTRATION STATS Registration trends since 2003 CUSTODIAN OF CO- OPERATIVES ACT Financial Year Dep. AGRIC Dep. AGRIC New Registrations 299 511 CIPRO CIPRO CIPRO (Co-ops Act, 2005 from 2 May 2007) CIPRO CIPRO CIPRO CIPC (end of Q1/June 2011) CIPC (end of Q2/Sep 2011) CIPC (end of Q3/Dec 2011) C IPC (end January 2012) Apr-03 May-04 Jun-05 Jul-06 Aug-07 Sep-08 Oct-09 Nov-10 Dec-11 Dec-11 Dec-11 Dec-11 Totals 2,829 6,765 3,391 6,054 9,279 8 111 1 921 3 529 3 687 2 983 21 041 Deregistrations during financial year* Total no. registered at end of the period 220 69 126 200 157 589 388 549 162 170 205 184 4,210 4,652 7,355 13,920 17,154 22,619 31,510 43,062 44 821 48 180 51 662 54 461 3 019 * Do not submit Annual Returns (for more than 1 year / upon application) 12
9. Gauteng Enterprise Propeller (GEP) C. COOPERATIVE SUPPORT In addition to the departments and agencies listed hereunder, there are various other departments and agencies who also provide co-operative support. 1.The dti: Cooperative Unit 2.Small Enterprise Development Agency (SEDA) 3.Cooperative Incentive Scheme The Enterprise Organization (CIS) 4.Provincial departments Eastern Cape ; Free State; Gauteng; Limpopo; North West ; Western Cape ; Mpumalanga; 5. National departments Department of Labour; Dep. Of Public Works; Cogta; 6.Co-operatives Bank Development Agency 7.Ithala Development Finance Corporation (Ithala) 8. Eastern Cape Development Corporation (ECDC) 13
Dti: Co-operatives Unit: Direct support / market access support C. COOPERATIVE SUPPORT Financial Year 2011/12 Event / activity Facilitate access to International markets / exhibitions: 11 co-operatives participated in Italy; 8 participated in Portugal; 3 in India and 6 in Cameroon Facilitate access to National market: 10 co-operatives participated in Food & Wine exhibition, and 18 coops participated in the Decorex exhibition. BRICS meeting attended in China, 5 co-operatives participated 14
Dti: Co-operatives Unit - Programme design to Facilitate the establishment of Small scale cooperatives C. COOPERATIVE SUPPORT Number of small scale co-operatives promoted and assisted with registration support, 2011/2012 Eastern Cape 33 Gauteng 18 Mpumalanga 13 KZN 111 Number of small scale co-operatives promoted and assisted to access funding, 2011/2012 Eastern Cape 33 Gauteng 18 Mpumalanga 13 KZN 111 15
Dti: Co-operatives Unit Awareness and Information Programme, 2011/12 Number of walk-in clients provided with cooperative assistance: 183 Co-operative workshops, seminars and information sessions held across all provinces, attended by an average of 100 people in each: 47 Taking dti to the people, Richards Bay was attended by 800 people and Polokwane attended by 50 2 Taking Parliament to the people, KZN, attended by an estimated 2000 people 1 Minister s workshop, KZN attended by an estimated 600 people 1 International Day of Co-operative Celebration in held in EC; attended by 2000 people and 48 cooperatives exhibited. Material developed for coop information: Co-operative Catalogue C. COOPERATIVE SUPPORT 16
Small Enterprise Development Agency, 2011/12 C. SUPPORT / FINANCIAL 9 studies (e.g market reports, feasibility studies) have been conducted to support cooperative development 83 Primary cooperatives were supported through various interventions such as pre-incorporation workshop, mentorship, feasibility study, marketing plan, cooperative governance training and implementation of financial management systems have been undertaken to support and develop primary cooperatives 6 Secondary co-operatives have been supported 17
Small Enterprise Development Agency, 2011/12 C. SUPPORT / FINANCIAL 18 large scale co-operatives have been identified for support These are co-operatives that have the potential to create more than 50 jobs each The aim is to direct resources and efforts towards sustainable projects that have a high potential to meaningfully create jobs. Projected budgets per province: Eastern Cape Free State Gauteng Mpumalanga North West Northern Cape Western Cape KZN Limpopo R 1 282 800 R 450 000 R 730 000 R 837 506 R 2 436 200 R 3 020 000 750 000 R 682 576 R 2 385 000 Total projected budget for the 18 cooperatives R 12 574 082 18
Performance of Co-operative Incentive Scheme, 2005 March 2011 C. Support / Financial Approvals: R3.086 % Inc:3 Female:136 Approvals: R3,028 % Inc:3 Female:171 Approvals: R14.9m % Inc:16 Female:466 Approvals: R25m % Inc: 27 Female:626 Approvals: R5.2m % Inc:6 Female:148 Approvals: R13,6m % Inc:15 Female:274 Disbursements: 2005 to end March 2011 R92,523m 488 Co-ops have benefited SECTOR DISTRIBUTION: Manufacturing 90 (18%) Wholesale & Retail 8(2%) Services 60(12%) Agriculture 230(47%) Cultural Industries 4 (1%) Clothing & Textiles 93(19%) Mining 3(1%) Promote greater participation by black persons especially in rural areas Primarily aimed at assisting HDI s, women, youth & disabled Approvals: R8.4m % Inc:9 Female:91 Approvals: R18.2m % Inc:20 Female:366 Approvals: R1.1m % Inc:1 Female:92 Monthly two day workshops improved application intake from NC, Limp, EC,WC, NW & FS Collaboration with other co-op supporting institutions such as National Development Agency; National Youth Development Agency & National Empowerment Fund to improve feasibility and sustainability Development of clustering, branding and value adding model conducted in association with industry and 19 agency players.
Co-operative Incentive Scheme Total budget allocations, 08/09 to 11/12 08/09 09/10 10/11 11/12 Budget R9.3m R34m R44m R54.4m R committed R9.8m R40m R44m R44.7 Nr applications approved 52 236 242 162 Actual Jobs 520 2360 2420 1054 C. SUPPORT / FINANCIAL Number of co-operatives benefited per province, 2011 ** depends on number of applications submitted; incomplete applications, applications not approved by the Board The CIS is putting a programme in place to address the low participation rates from these provinces Province Number MP** 7 KZN 43 EC 15 WC** 8 FS** 2 GAU 34 LIM 38 NW 15 NC** 0 TOTAL 162 20
Co-operative Incentive Scheme Total amount disbursed (April 2011 Dec 2011) = R37 086 472.16 C. SUPPORT / FINANCIAL SECTOR MPU KZN EC WC FS LIMP GAU NW NC ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR TOTAL AMOUNT/ SECTOR AGRI. 919 128 8 588 133 1 635 916 5 675 576 643 335 6 983 845.37 1 362 722.84 2 880 435.20 0 28 689 091.36 MANUF. 77 484 2 451 491.72 451 169 346 739 3 059 642.83 3 091 214 718 943 0 2 221 411 SERVICES 987 443 921 518 233 920 3 801 393.80 333 229 0 6 175 969.80 Amount App/ Province 996 612 12 027 067.72 3 008 603 6 256 235 643 335 10 043 488.20 8 255 330.64 3 932 607.20 R 0.00 37 086 472.16 21
Co-operative Incentive Scheme Number of members per province by gender / youth / people with disabilities, 2011/12 Province Male Females Youth People living with disabilities C. SUPPORT / FINANCIAL Total MP 27 36 6 0 69 KZN 112 209 35 4 360 EC 40 54 15 0 109 WC 3 36 6 0 45 FS 11 6 0 0 17 GAU 54 114 48 0 216 LIM 96 202 53 3 354 NW 35 28 7 1 71 NC 0 0 0 0 0 TOTAL 378 685 170 8 1241 22
Provincial departments: Cooperative Support Province/Dep artment Financial Period C. SUPPORT / FINANCIAL Amount Disbursed Benefits to Cooperatives EC : DEDEAT 2011/2012 R5 209 992.60 (Loans and seed capital) 6 Coops were funded Created 97 permanent jobs Created 260 temporary jobs 16 cooperatives provided with technical skills training Beneficiaries : 100% Blacks, 60% women, 20 % Youth R63.4 million to cooperatives through the Imvaba Fund - managed by ECDC Marketing and Communication (R2 mill) Mentoring and Non-financial support (R4 mill) Capacity building (R6 mill) Seed Capital/Risk Fund (R10 mill) Term Loans (R41,4 mill) 23
Provincial departments: Cooperative Support Province/Dep artment Financial Period C. SUPPORT / FINANCIAL Amount Disbursed Benefits to Cooperatives FREE STATE 2010 / 2011 R160,000.00 R325,000.00 R3 mill (for equipment for the cooperatives) 180 co-ops supported (120 rural, 60 urban) to attend capacity building programme and conference. 60 co-ops (pottery, grass, leather, beads) to attend exhibitions 5 co-ops benefit from grants from DETEA and dti) 24
Provincial departments: Cooperative Support C. SUPPORT / FINANCIAL NAME OF PROVINCE FINANCIAL PERIOD AMOUNT DISBURSED GAUTENG 2011/12 R126.6m (joint fund of DED, GEP and DHSD) R55 mill contract amount awarded R1.5 mill disbursed (DHSD) BENEFITS TO COOPERATIVES 12 sewing co-operatives have been given orders by hospitals to produce and supply linen and gowns. 382 cooperatives in sewing, knitting and shoe- making have delivered 100 000 uniforms for DHSD. 60 cleaning cooperatives R8.6m contract awarded by DED 1 security cooperative 11 youth cooperatives were assisted to register and provided with training on landscaping; they will be given contracts to beautify the hospitals 7500 community patrollers mobilized to form security cooperatives 2390 jobs created; 2200 temporary jobs created R60 mill disbursed (DHSD) School uniform project 25
Provincial departments: Cooperative Support C. SUPPORT / FINANCIAL NAME OF PROVINCE FINANCIAL PERIOD AMOUNT DISBURSED LIMPOPO 2011/12 R4 168 247.13 (through funds leveraged by Libsa from the dti, Anglo Plat, Two Rivers Mine, NDA) BENEFITS TO COOPERATIVES 47 co-operatives funded Monitoring and evaluation tool developed for co-operatives designed and implemented Consultation meeting on co-operatives strategy was held on the 9 th of September 2011 at Sasavona Guest House. 26
Provincial departments: Cooperative Support C. SUPPORT / FINANCIAL Province/ Department Financial Period Amount Disbursed Benefits to Cooperatives NW:DECT 2011/12 Allocated R4.6 mill R2.8 mil R2 mill R500 000 R705 000 (disbursal to be confirmed later) Amount invested R207 000 for youth Coops Sisal Wild Silk Operational costs (mentoring /training) 26 Coops were registered; 8 cooperatives assisted to register 23 cooperative awareness workshops conducted 8 youth co-operatives assisted to attend the International Youth Cooperative Celebration 10 financial co-operatives assisted to attend the CFI Indaba in CT Micro lending scheme developed with NWDC Brick-making co-operatives assisted to secure SABS approval 27 Assist co-operatives supported by other institutions to attend International Trade exhibitions
Provincial departments: Cooperative Support C. SUPPORT / FINANCIAL Province/Dep Financial Amount Disbursed artment Period WC: DEADT 2010/2011 R180 000 No budget allocated, funded through Voucher Programme: SMME Benefits to Cooperatives 22 Coops were supported 154 jobs created Sectors: Agriculture, Textile, Financial services and Craft 2011/12 Allocated R1.3 mil through DBSA (disbursal to be confirmed later) MPU 2011/12 R500 000 R1 mil (financial support is provided by MEGA) R1.5 mil 68 Coops supported 5 co-ops applied for procurement opportunities from Dep. Public Works 10 co-ops applied for CIS grant 13 co-ops accessed grant funding through dti (10 in Doornbaai) 5 Coops established 75 beneficiaries: 100% youth 60% women, 40% males Sectors: 4 in Construction, 1 in Agriculture Dispensed to SEDA 28
National departments: Cooperative Support C. SUPPORT / FINANCIAL Department Financial Period Amount Disbursed Benefits to Cooperatives DOL 2011/12 R225, 720.00 Worker Cooperative Strategy completed Cooperative pamphlet has been produced 3274 unemployed people received career advice on co-operatives 12 staff members trained on cooperatives 1 cooperative assisted to register Life Skills Programme manual and workbook developed to guide work-seekers on the various products and services, to amongst others, assist them in establishing cooperatives 75 career guidance councilors appointed to assist in cooperative promotion 29
National departments: Cooperative Support C. SUPPORT / FINANCIAL Department Financial Amount Benefits to Cooperatives Period Disbursed DPW 2011/12 R20.8 mil 42 co-ops supported / awarded contracts (EC awarded contracts to 34 cooperatives, - of which 2 cooperatives received 2 contracts; LP= contracts awarded to 2 cooperatives; NW contracts awarded to 6 cooperatives; in total 44 contracts awarded to cooperatives) Created 364 jobs: 140 Youth, 121 Women, 243 Males Assistance on co-operative registration, training, branding, profiling and applying for the CIS grant through SEDA and LIBSA Briefing sessions in all provinces to create awareness on the Departments support to cooperative 30
National departments: Cooperative Support C. SUPPORT / FINANCIAL Department Financial Allocated Budget Benefits to Cooperatives Period COGTA 2011 / 2012 R18 million 556 cooperatives were registered in all provinces 5099 jobs created Sectors: agriculture, manufacturing, catering, arts, crafts, construction etc 1500 individuals trained on cooperatives Mentoring and Training 31
National departments: Cooperative Support COGTA: C. SUPPORT / FINANCIAL Province Tot Coops Tot Members Male Female Youth Total Job opportunities EC 61 546 298 256 155 582 KZN 96 1119 405 714 181 849 GAU 82 652 220 432 172 949 LIMP 90 854 385 461 155 966 MPU 65 606 257 349 152 448 NC 58 889 492 397 107 538 NW 43 293 121 172 81 346 WC 61 481 177 303 90 421 Total 556 5440 2355 3084 1093 5099 32
Cooperatives Bank Development Agency, 2010/11 C. SUPPORT / FINANCIAL Assisted financial services co-operatives to register with SAMAF Assisted SACCOs affiliated to SACCOL with their capacity building needs. Total membership of CFIs is 45,301 Provide non-financial support such as: Governance and Managers training Manual Accounting technical assistance Bringing Financial Co-operatives accounting books to date Performance assessments and financial analysis on financial cooperatives and give necessary recommendations to improve performance Technical assistance to CFIs to accelerate their registration as Cooperative banks Registration and supervision of Co-operative Banks 33
Ithala Development Finance Corporation, 2010/11 C. SUPPORT / FINANCIAL 1. Ithala is the leading lender to co-operatives and KZN has a 40% share of the co-operatives market nationally 2. In 2010/11 R287 million in loans was approved for SMMEs and co-operatives; 3. An amount of R3 million was advanced to co-operatives 34
Eastern Cape Development Corporation (ECDC) Imvaba Performance: Spatial Distribution (up to Aug 2011) Since July 2010 until August 2011/12, the ECDC Funding Committee has approved funding for a total of 38 co-operatives C. SUPPORT / FINANCIAL 35
Eastern Cape Development Corporation (ECDC) Imvaba Performance: Committed Funds (up to Aug 2011) C. SUPPORT / FINANCIAL DISTRICT MUNICIPALITIES NUMBER OF CO- OPERATIVES AMOUNT COMMITTED Cacadu 3 R 2 390 746.00 Joe Gqabi 1 R 400 000.00 Nelson Mandela 9 R 1 583 885.00 Chris Hani 5 R 1 407 040.00 Amathole 17 R 14 439 496.00 OR Tambo 3 R 2 900 000.00 Alfred Nzo 0 R 0.00 TOTAL 38 R 23 121 167.00 36
Gauteng Enterprise Propeller (GEP) (2011/12) C. SUPPORT / FINANCIAL Number of co-operatives supported: 1295 Number of co-operatives funded: 4 Number of co-operatives accessing procurement opportunities.: 2 Non-financial support: Coop Assistance Programme Business development Training Johannesburg 1 93 145 Ekurhuleni 5 130 148 Sedibeng 5 106 38 Tshwane 17 110 197 West Rand 4 108 1 Head Office 6 175 Total 32 553 704 Developed the Co-operatives Strategy for the province; Manages the Co-operative Support Programme Manages the Co-operatives Assistance Programme 37
Cooperative challenges D. Coop challenges 1. The Ten Set-aside programmes approved by Cabinet in 2009/10 was declared unconstitutional by National Treasury; this prevents co-operatives from accessing the available procurement opportunities that would have been available 2. Support and coordination of co-operatives programmes at provincial and municipal level is weak; due to un-funded mandates, human resource constraints and also lack of commitment from senior officials to the cooperative programmes However, the Integrated Strategy on Cooperatives sets out that all levels of government should support cooperative development Most provinces do not have strong directorates to drive cooperative development 38
Cooperative challenges D. Coop challenges 3. Co-operatives have a very low survival rate; the establishment of secondary marketing co-operatives could assist in providing market access support to primary agricultural co-operatives; BEE Bill cooperative support will be strengthened through a concerted effort to promote and support co-operatives at all three levels, from primary through to tertiary level a strong focus will be on the Co-operatives Development Agency s mentoring and after-care support services to co-operatives 4. Lack of an accurate reporting mechanisms: Existing reporting mechanisms are weak and need to be strengthened to ensure accurate reporting on cooperative development and support interventions The dti is in the process of developing an integrated electronic cooperative reporting mechanism that should be operational in the course of the next couple of months; 39
Programmes designed to enhance sustainability of co-operatives E. Coop sustainability 1. The CIS has an effective monitoring process in place 2. The first round of monitoring commences 6 months after the approval has been granted To ensure that the funds have been utilised correctly 3. Thereafter the co-operatives are monitored in terms of their performance and improvements The status of the co-operative is assessed Challenges are identified Corrective measures are put in place such as the provision of professional services to address the management challenges 40
Programmes designed to enhance sustainability of co-operatives E. Coop sustainability 4. The Registrar provides co-operatives with guidance such as pro forma documents to assist them in the registration and management of the co-operative 5. In addition support is provided where co-operatives are experiencing conflict (in due course this service will be provided through the Co-operative Tribunal 6. Training and capacity building programmes are provided to assist co-operatives that are struggling 7. Provide market access support sustainability of cooperatives 41
Programmes designed to enhance sustainability of co-operatives The Co-operative Development Agency will assist co-operatives to achieve their sustainability, by providing the following services, in addition to others: 1.provide Education and Tr aining to co-operatives; E. Coop sustainability 2.assist co-operatives to fully comply with the compliance requirements of the Cooperatives Act; 3.provide access to information regarding all products, programmes and services available to co-operatives; 4.raise awareness in connection with and research into any matter affecting the effective, efficient and sustainable functioning of the co-operatives and the cooperatives organised sector; 5. provide the necessary support within the Agency s capacity to enable individual co-operatives to become and remain operational and 6.refer information on co-operatives that the Agency has supported to the Tribunal in the event that such support was not successful. 42
CONTACT DETAILS The dti Customer Care Centre: 0861 843 384 Website: www.thedti.gov.za SEDA: 012 441 100 Website: www.seda.gov.za CIPC: 012 394 5050 / 012 394 3334 Website: www.cipro.gov.za The dti Co-operatives Unit: J Ndumo 012 394 1608 jndumo@thedti.gov.za 43
Thank you. 44