24 Jun 2013

The Ministry of Trade and Industry has come up with a co-operatives transformation strategy to revamp and resuscitate co-operatives.

Briefing members of Ntlo ya Dikgosi about the strategy on June 20, deputy permanent secretary, Ms Peggy Serame said through the strategy, the ministry would “develop new generation co-operatives.”

She said the performance of co-operatives declined due to increased competition from other trading sectors. The first co-operative, she said, was registered in 1964 at Swaneng. To date, she said, there were about 180 registered co-operatives, mostly operating as trading co-operatives in rural areas.  

“Most of these co-operatives declined because they ran their businesses the very same way that they used to run them back in 1964 and did not adapt to keep up with the forever changing business environment,” she added.

In order to embrace modern business practices, Ms Serame said co-operatives had to change their business approach, diversify their products and markets, meet customer needs and expectations, uphold entrepreneurship culture and be run by people with a business mindset.

In realising the potential that co-operatives had in contributing towards economic diversification, employment creation and poverty eradication, Ms Serame said cabinet approved the transformation strategy in 2012.

The strategy has eight pillars namely; co-operative branding, co-operative growth pillars and linkages, co-operatives environment for doing business, co-operatives financing and insurance, youth participation, co-operatives mindset change, co-operatives corporative governance and member participation and commitment. ENDS