09 Feb 2015

Cooperative societies play an important role in uplifting people’s living standards thus contributing to the country’s economy, Assistant Minister of Trade and Industry, Mr Sadique Kebonang has said.

He said this at the signing ceremony of a Memorandum of Understanding (MoU) between Selebi Phikwe Mining Savings Credit Cooperative Society (SPMSACCOS) and Itshetseng Lobatse Town Council Savings Credit Cooperative Society.

Mr Kebonang said, the worldover, cooperative societies had proven to be business entities with the ability to make profits, citing Kenya whose cooperatives contributed 54 per cent of its Gross Domestic Product.

The assistant minister said the most important thing to successfully run cooperatives was to identify the right people with proper business acumen, adding that lack of proper management of those entities could result in their collapse.

He said cooperatives had collapsed in the past, due to improper management and called on members of surviving cooperatives to ensure their standing survival.

Mr Kebonang assured the two cooperatives of government’s support in terms of capacity building and training to ensure that the cooperatives solve all the challenges that had been impeding on their successes.

 He applauded the two societies for working towards a joint venture and going into property development as this had proven to be a thriving business venture.

 “It is significant to take pride in the marriage of the two cooperatives from two towns which have been labeled as ghost towns as this will prove that out of these two towns can come viable businesses,” he said.

The survival of the two cooperative societies, he said would contribute to employment creation in Lobatse and improve the town’s aesthetics. For her part, director of cooperatives, Ms Kopano Mukoni said the joint venture by the two cooperatives was a sign of growth in cooperatives.

Ms Mukoni said this came as a turnaround in the history of cooperatives as they ventured into million pula businesses. She encouraged all other cooperative societies to go into linkages through business ventures and empower each other towards growth.

“This is an evolution of cooperatives giving birth to a relevant idea as it ventures into property investment,” she said. She said she was glad to be a part of the community that was witnessing growth and economic empowerment among citizens.

Lobatse Town Council clerk, Ms Gabatlotlane Sekwakwa said the two councils were living the Botswana Excellence Strategy that advocates for pursuance of excellence through hard work and discipline.

She said through the upcoming project the two cooperatives were working towards creating a viable economy that meets the 21^st century demands.

This, she said was also a mileage in showing that cooperatives were now looking at a bigger picture of taking the country far in terms of economic booming.

The SPMSACCOS purchased a P3 million business plot in Lobatse. It formed a 50- 50 joint venture with Itshetseng Lobatse Town Council SACCOS where the two cooperatives will run the business and share profits equally.

The plot comprises shopping complex and a petrol filling station and is envisaged to start operating before the end of this year. The complex is expected to operate close to 50 businesses and employ about 200 people. ENDS