25 Mar 2013

The Assistant Minister of Trade and Industry, Mr Keletso Rakhudu has challenged Ngamiland District residents to look for alternative projects that are profitable in order to revive their co-operatives. 

 

Mr Rakhudu noted that co-operatives were business enterprises that have to make profits in order to sustain themselves. 

 

Briefing North West District councillors (NWDC) about his ministry’s role in the revival of co-operatives, Mr Rakhudu said co-operatives could assist in the economic diversification of the country.

 

He said while residents of Ngamiland are known for cattle farming, the Foot and Mouth Disease has ensured that cattle farming remained insignificant. Mr Rakhudu urged residents to venture into other commercial activities.  

 

He said co-operatives were better placed to generate funds than cattle farming, adding that cattle farming was no longer attractive because of the persistent FMD outbreak.

 

“It is amazing that you are still interested in rearing cattle yet you have been hard hit by cattle diseases,” Mr Rakhudu said.

 

He suggested that residents could venture in projects such as bee farming. He noted that the Maun Consumer Co-operative had not been doing well because of poor management and lack of skills. 

 

Mr Rakhudu noted that there was no training or development of staff or board members, adding that the co-operative had no sustainable survival plans besides the P21 000 monthly rentals.

 

The assistant minister said the co-operative was in debts of staff salaries and that it also owed suppliers. He explained that government was concerned about the poor management of co-operatives and was doing everything in its power to revive them as their philosophy was based on member economic empowerment. 

 

The assistant minister noted that co-operatives were performing well in other countries and were considered as a third pillar of economic growth after state and private enterprises.

 

Mr Rakhudu noted that co-operatives kept economic benefits within a community, adding that they intend to turn basket weavers in Shorobe into a viable commercial enterprise.

 

He said they visited countries such as Lesotho, Rwanda, Tanzania and Kenya to benchmark on how co-operatives were managed and operated. 

 

He said they were impressed by Lesotho’s youth co-operatives, and that in Kenya co-operatives accounted for 43 per cent of the Gross Domestic Product. “If we could do the same thing our economy could end up depending on co-operatives,” said Mr Rakhudu.

 

The assistant minister noted that in Kenya they have a co-operative bank which supports co-operatives and other businesses. He said they were impressed by the Kenya model, hence the initiative to revive co-operatives in the country.

 

Mr Rakhudu said people should change their mindset and appreciate the importance of operating co-operatives. He also encouraged the branding of products, saying co-operatives should have their own brands to be more competitive. ENDS