Trade and Industry Minister Mandisi Mpahlwa on Monday announced the department’s plan to encourage the formation of co-operatives as part of government’s job creation strategy.
”Internationally we have seen how co-operatives are an important part of many economies and the contribution they make to society,” said Mpahlwa in her speech at the opening of the two day Co-operatives Conference in Benoni.
”Co-operatives clearly offer a viable form of enterprise in any economic system and are not, as some might argue, a form of enterprise that comes exclusively out of socialist economies.”
Department spokesperson Bongani Lukhele defined co-operatives as small enterprises that differed from close co-operations in that all those who formed part of a co-operative were equal shareholders.
He said co-operatives had existed in South Africa for a long time, especially in the agricultural sector.
”An example of a co-operative is your ‘stokvel’ where people with a common interest combine to do something. Through co-operatives, the department aims to encourage people to do things as a collective where benefits do not just go to one person but to a group,” said Lukhele.
He said the aim of the conference was to give an update on how far the department had gone in its transformation process of co-operatives, and making them the responsibility of the trade and industries department. This was formerly the responsibility of the agriculture department.
”The department of Trade and Industry has established a Co-operatives Unit which will look into the implementation of an education campaign to conduct training in co-operative principles and practices,” said Lukhele.
He said the drive to promote and support co-operatives stemmed from the 2003 Growth and Development Summit (GDS).
In her speech, the minister said the GDS made a commitment to support co-operatives because of their potential ”to create and develop income-generating activities and sustainable, decent employment”.
”A strong autonomous self-reliant and self-sustaining co-operative movement can play a major role in the economic, social and cultural development of South Africa.
”Co-operatives are also able to contribute to the mobilisation of resources and broad-based economic empowerment thereby enhancing sustainable human development in South Africa,” said Mpahlwa.
Public hearings for the Co-operatives Banks Bill and the Dedicated Banks Bill are expected to start on Tuesday.
Mpahlwa said these pieces of legislation were meant to allow for alternative forms of banking and the creation of new opportunities for people to mobilise resources and save.
The conference ends on Tuesday. – Sapa