06 Jun 2017

Changes in the business environment in terms of technological advancement and trade liberalisation, means that co-operative business can no longer be run as socially-oriented business detached from modern business practices.

This was said by the Assistant Minister of Investment, Trade and Industry, Mr Biggie Butale at Thuto SACCOS fund raising dinner and brand launch.

Mr Butale said co-operative societies like Thuto SACCOS needed to change their business approach to embrace modern business practices, diversify their products, markets, meet customer needs and at the same time uphold entrepreneurship culture.

He said co-operative societies had taken some steps in the implementation of the transformation strategy for co-operative development, which the ministry developed to resuscitate, revamp and re-direct the development of co-operatives into globally competitive businesses.

The assistant minister noted that the event was in line with the Transformation Pillar 1 of co-operative branding, which focuses on developing a positive public image about co-operatives and ensuring that they were run and viewed as autonomous, vibrant, competitive and profitable business enterprises.

“Thuto SACCOS has invited strategic partners such as the government, parastatal, private sector, media and other development partners to plead for their support in this collaborative approach in building New Generation Co-operatives,” he said.

In addition, he said co-operatives faced challenges such as mismanagement and fraud which led to the dwindling image of the co-operatives and the collapse of once successful co-operatives.

The other challenge, he said was lack of swift intervention and installation of preventative control measures which crippled the commercial viability and self-sustenance of these co-operatives.

Further, the assistant minister said attraction and retention of skilled employees was one change needed to be addressed, particularly that small and medium scale co-operatives are not in a position to competitively attract and retain skilled and experienced employees at management level.

Mr Butale stated that inadequate member commitment was also one challenge that co-operatives faced countrywide, adding that has resulted in poor attendance of co-operative meetings by members and inadequate patronage.

He said that it was crucial for co-operators to devise a holistic approach for an indiscriminate inclusion of all in the Co-operative Movement for the attainment of the AU Agenda 2063 - “The Africa we want.” This was an endogenous plan of transformation meant to harness the African continent’s comparative advantages that would lead to eradication of poverty, employment creation, peace, social cohesion and environmental management, he said.

Thuto SACCOS chairperson, Mr Charles Keikotlhae said Thuto SACCOS which stands for Thuto Savings and Credit Co-operative Society has been in existence since 2005, but became fully operational in 2007.

He said the Society was formerly made up of employees of the then Ministry of Education and Skills Development and later included employees of parastatals under the same ministry.

Mr Keikotlhae said that the main purpose of the brand launch was to educate the public on the importance of SACCOS’ model and how it could be an effective tool for economic diversification and job creation.

He said the way to economically empower Batswana was to get them involved in the co-operative movements especially the SACCOS model, adding that in a turbulent financial era where to save money was hard to come by, SACCOS could play a meaningful role and thus save Batswana from financial sharks and bankruptcy. ENDS