Department of Trade and Industry (the dti) working on legislation to enhance support for cooperatives

The Department of Trade and Industry (the dti) is in the process of developing new legislation aimed at creating a conducive environment for the growth and sustainability of cooperatives in South Africa.

This was said by the Minister of Trade and Industry, Dr Rob Davies at the celebration of the International Day of Cooperatives hosted by the dti in partnership with the Eastern Cape Department of Economic Development and Environmental Affairs, the National Youth Development Agency (NYDA), and the South African National Apex Cooperative (SANACO) at the Jan Smuts Stadium in East London yesterday.

“There has been a serious need for us as government to recognise the specific nature of cooperatives and to design programmes geared towards addressing the unique needs of cooperatives. Consequently, the department embarked on a process of consultation with all stakeholders who include cooperatives themselves, SANACO, and the National Economic Development and Labour Council.

These consultations resulted in us developing a new legislation that we will be taking to Parliament soon. The legislation provides for the creation of a new cooperative development agency, cooperative academy to provide training, a cooperative tribunal which will deal with disputes, as well the new co-operative advisory council,” said Davies.

Davies added that the institutions which would be established through the new legislation would enable the dti to inject more support and resources to cooperatives to ensure that they are able to achieve their objectives of job creation, poverty alleviation and economic growth.

Davies also said there was a number of new areas of growth and development that have been identified in the Industrial Policy Action Plan (IPAP2) which would create opportunities for cooperatives. These include agro-processing, aquaculture and organic farming.

He announced that the dti was closed to finalising a youth enterprise development strategy as it had realised that there was a serious need for youth focussed programmes in order to address the challenge of unemployment among young people.

“We are going to ensure that our cooperative and youth development programmes speak to each to each. We will also make sure there is synergy between the efforts and initiatives of the dti and those of the NYDA in such a way that each of us brings our particular focuses and products on the table to assist young people,” said Davies.

The Deputy Chairperson of the National Youth Development Agency Mr Yershen Pillay said the Agency was part of the International Day of Cooperatives celebrations in order to create awareness amongst the young people about the role of cooperatives in facilitating economic development in South Africa.

This year the day was celebrated under the theme “Youth, The Future of Cooperative Enterprise”.

Pillay encouraged young people to establish or join cooperatives in their numbers and create employment for themselves as unemployment among the youth is high.

Five cooperatives who exhibited at the celebration won themselves training and support services vouchers to the value of R50 000 each from the NYDA in the best exhibitor competition. The overall winner, Dipeung Cooperative from Pretoria romped home with an additional cash prize of R20 000.

The International Day of Cooperatives is celebrated worldwide on the first Saturday of July every year.

For more information contact:

Charles Mnisi
Tel: 012 394 1721
Cell: 072 523 4886
E-mail: Cmnisi@thedti.gov.za

Refilwe Mphane
National Youth Development Agency (NYDA)
Tel: 011 651 7175/ 084 308 5860
E-mail: rmphane@nyda.gov.za

Sixolile Makaula
Eastern Cape Department of Economic Development and
Environmental Affairs (DEDEA)
Cell: 072 751 5001
E-mail: sixolile.makaula@deaet.ecape.gov.za

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