18 Feb 2013

The general manager of five cooperatives in Okavango says some branches may face closure if the situation of internal linkages continues.

Speaking in an interview, the general manager for the five cooperatives of Etsha, Nokaneng, Seronga, Sepopa and Gumare, Mr Malcom Thomas confirmed the possible impending closure.

Mr Thomas said due to escalating internal linkages that started way back in 2001, they have been losing millions of pula in profits, thereby leaving them with no option but to close.

He said the issue has become uncontrollable so far, adding that if the need arises, he will recommend to the board to close some of the shops.

Furthermore, Mr Thomas explained that back in the 1990s, cooperatives were doing quite well, making profits and never experienced theft like what was happening currently.

He said the situation of theft started in 2001 and had become uncontrollable, and revealed that personally, he does not see the future of the once butter and bread cooperatives that were in the early 70s.

He said since cooperatives were not run as business entities, but rather as a community managed business, it was difficult to manage and operate, saying this might be one problem that contribute to the downfall of the cooperatives.

Mr Thomas noted that due to the on-going stock taking in all the five branches since January this year, the financial report was not ready to be released due to the missing stock.

“ We are taking stock for all our branches until March this year,  but we have found out that only one shop is making profit but the other four are not” he noted.

He said they were not sure when the report would be ready, although he admitted that they are some delays from the branches.

The closure of the shops would see many employees losing their jobs, which he said was not good for the people as cooperatives had been a source of income.

Regarding competition from established and upcoming retailers, Mr Thomas explained that there was competition but it was not a threat to the business.

He added that this was due to infrastructure development in the area as compared back in the years where Etsha Coop was the only one stop shop. ENDS