01 Aug 2013

Government has found it necessary to resuscitate, revamp and re-direct the development of co-operatives, as they have the potential to diversify the economic, create employment and eradicate poverty.

Presenting the Co-operatives Societies Bill of 2013 in Parliament on Thursday, the Minister of Trade and Industry, Ms Dorcas Makgatho-Malesu said there are about 160 co-operative societies registered countrywide. She noted that both the trading and savings and credit co-operative societies are not operating to their full potential due to stiff competition and lack of business acumen among others.

She said in an endeavour to resuscitate the ailing co-operative movement, the ministry has initiated the review of the Co-operatives Societies Act to align it with modern times. “The tremendous socio-economic transformation that Botswana has experienced over the years such as technological advancements and fast changing business environment have rendered some portions of the Co-operative Societies Act outdated and inadequate,” she said.

Ms Makgatho-Malesu explained that the co-operative movement was previously regulated through the Co-operative Act of 1962, which was later replaced by the Co-operative Societies Act of 1989. She said it was used together with National Development Plans to guide the development of co-operatives. She further explained that the national policy for co-operatives development was developed in 2007 to further give direction to the co-operative movement.

The minister pointed out that the act no longer enables the government to successfully facilitate the sustainable development, growth and diversification of the co-operative movement in Botswana. “In order to make sure that the review was comprehensive and effective in turning around the co-operative movement, the ministry embarked on a benchmarking exercise to countries like Lesotho, Kenya and Tanzania where co-operatives are performing optimally well,” she said.

She said the major object of the bill was to repeal and re-enact the Co-operatives Societies Act with substantive amendments for the purpose of creating an enabling environment for the development and growth of various types of co-operative business enterprises as well as strengthening the institutional framework for advising on the governance of such societies.

She said the bill would also provide guidelines for the effective and proper management of societies in accordance with acceptable business operational standards as well as ensure the development of skill, competencies and capacity in societies through training. ENDS