STATUS REPORT ON ECONOMIC AND EMPOWERMENT AGENDA: COOPERATIVES

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STATUS REPORT ON ECONOMIC AND EMPOWERMENT AGENDA
COOPERATIVES 2007-2008 PRESENTATION TO THE
PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY - 07
NOVEMBER 2007 JEFFREY NDUMO CHIEF DIRECTOR
COOPERATIVES
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(No Transcript)
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Background Information

• On 05 December 2001, cabinet approved the new
  mandate for cooperatives development to be
  transferred from the Department of Agriculture
  (DoA) to the Department of Trade and Industry
  (the dti)
• Government seeks to promote cooperatives to all
  the sectors of the South African economy and not
  only in the agriculture sector, which used to be
  the case during the apartheid government
• Governments perspective is that all spheres of
  government should actively be involved in the
  promotion and development of co-operatives. This
  view is embedded within the Cooperatives Act No.
  14 of 2005 and policy and
• Co-operatives Act No. 14 of 2005, prescribes that
  the dti should facilitate effective coordination
  and reporting mechanism across all spheres of
  government with respect to promotion of
  cooperatives in the whole economy.

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Status on the Cooperatives Act, National Policy
and Strategy

• During 2004, the Co-operatives Policy that formed
  the basis for the development of the amended
  Cooperatives Act was finalised and approved
• The Cooperatives Act, No.14 of 2005 was
  promulgated into law on the 14 August 2005,
  repealing the 1981 Cooperatives Act.
• The Cooperatives Regulations that ensured the
  proclamation of the Cooperatives Act on the 02
  May 2007, were finalised, allowing for the
  effective implementation of the Act.
• New systems were launched by CIPRO for
  registration of cooperatives. CIPRO is now
  working on the decentralisation of cooperatives
  registration.
• The National Cooperatives Development Strategy is
  a major policy instrument currently being
  finalised by the dti.

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Status on the Cooperatives Act, National Policy
and Strategy, cont.

• Among others, the purpose of the Act is to
• Promote the development of sustainable
  co-operatives that comply with co-operative
  principles, thereby increasing the number and
  variety of economic enterprises
• Encourage persons who subscribe to values of self
  reliance and self help to register in terms of
  this Act
• Encourages simpler registration process and
  management of cooperatives
• Promote equity and greater participation by black
  persons, especially those in rural areas, women,
  persons with disability and youth
• Facilitate the effective co-ordination and
  reporting mechanism across all spheres of
  government through the dti and
• Ensure development of support programmes by all
  spheres of government.

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(No Transcript)
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Coordination with other National Departments

• The dti, as the custodian of the cooperatives
  programme, established the Interdepartmental
  Committee to coordinate cooperatives development
  activities and programmes with key national
  departments.
• 20 national departments were invited to
  participate in the committee
• 18 departments responded to the call and are
  attending meetings on a quarterly basis.
  Environmental Affairs and Forestry and Statistics
  SA never responded.
• The coordination is aimed at ensuring that
  compliance with the requirements of the Act takes
  place from all the departments in terms of
  formulating strategies and programmes design to
  support cooperatives. The departments share
  experiences as well as report progress in this
  regard.

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Status on Provincial Cooperative Strategies
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on the formulation of Provincial
Cooperative Strategies, cont.
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Financial Support for Cooperatives
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Status on Financial Support for Cooperatives,
cont.

Cooperative Incentive Scheme (CIS)

• 2006 to 2007 THE ENTERPRISE ORGANISATION (TEO)
• 9010 matching grant for start-up
• Investment disbursed R4 million to 16
  cooperatives
• 303 members of cooperatives received jobs and
  
• CIS has been transferred to TEO to administer and
  rollout.

Cooperative Special Project Fund (CSPF)

• 2006 to 2007 COOPERATIVES DEVELOPMENT UNIT
• Grant and loan mixed facility
• Provide start up and expansion capital assistance
• Investment disbursed R8 million to 4 small to
  medium cooperatives
• Substantial jobs created and
• CIS has been transferred to Khula to administer
  and rollout.

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Status on Access to Markets support

SMME Cooperatives Targeted Procurement Progra
mme (set asides)

• Designated 10 products approved by cabinet to be
  rolled out to other departments and provinces.

30 days payment For SMMEs and Cooperatives

• Measures for 30 day compliance approved by
  cabinet to be rolled out to other departments and
  provinces.

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Status on Non-Financial Support for Cooperatives,
cont.
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Status on Non-Financial Support for Cooperatives,
cont.
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Status on Support for Cooperatives from other
National Departments
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Support for Cooperatives from other
National Departments
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Support for Cooperatives from other
National Departments
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Support for Cooperatives from other
National Departments
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Support for Cooperatives from other
National Departments
The Cooperatives Act, No.14 of 2005 legislates
that all spheres of government design and
implement support measures for cooperatives.
Coordination with the respective departments rest
with the dti to ensure fulfillment of these
requirements
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Status on Support for Cooperatives in Provinces


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Status on Support for Cooperatives in Provinces

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Status on Support for Cooperatives in Provinces

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CHALLENGES

• Some provinces, national departments and
  institutions do not have budget dedicated or
  ring-fenced for cooperatives.
• Some provinces, national departments and
  institutions do not have programmes dedicated for
  cooperatives
• Some national departments e.g. Labour do not
  participate in the intergovernmental committee
  and report on progress has not been received.
  This will be corrected in the future.
• Leadership challenge coordination committees
  sometimes are effected by poor attendance.
• Leadership challenge Economic Development
  departments in provinces have not yet assumed
  leadership roles in coordinating for support for
  cooperatives in those respective provinces. To be
  corrected in the future.

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WAYFORWARD

• Strengthening of the existing coordination
  committees (i.e. interdepartmental provincial
  committees).
• Establishment of coordination committee with all
  development institutions (financial and
  non-financial).
• Assistance of provinces in establishing their
  coordination committees with other departments
  and provincial institutions.
• Clear reporting of progress to be emphasised in
  committees.
• Finalisation of the national cooperatives
  strategy and implementation of proposed
  programmes.
• Technical assistance to provinces in finalisation
  of their strategies.
• Technical assistance to national departments in
  development of cooperatives sector
  policies/strategies/programmes.

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THANK YOU