The Minister of Trade and Industry, Dr Rob Davies says the Cooperatives Amendment Bill that the department is taking through the Parliamentary process will go a long way in improving the sustainability of the cooperatives and their contribution to the country’s economy.
Davies was delivering a keynote address at the International Cooperatives Day celebrations hosted by the Department of Trade and Industry and the Northern Cape Department of Finance, Economic Development and Tourism at the Mittah Seperepere Convention Centre in Kimberly today. The celebration, which was held under the theme “Cooperative Enterprises Build a Better World”, is an annual event that is held throughout the world on the first Saturday of July.
The aim of the International Day of Cooperatives declared by the United Nations (UN) in 1995 is to increase awareness on cooperatives, highlight the goals and objectives of the UN and the international cooperative movement. The Day also aims to strengthen and extend partnerships between the international cooperative movement and other actors, including governments, at local, national and international levels.
“The new bill will result, amongst others, in the establishment of the Cooperatives Development Agency which will become a one-stop shop for both financial and non-financial support tailor-made for cooperatives, including administration of incentives, provision of training and improvement of working conditions in the cooperatives sector. The bill also provides for the setting up of a Cooperatives Tribunal and Cooperatives Advisory Council,” said Davies.
He emphasised that the proposed institutions were aimed at assisting the government to reduce the mortality rate amongst co-peratives and ensure their sustainability. These will ensure that cooperatives take their rightful place and contribute effectively to the country’s economy as they have the capacity to create jobs and eradicate poverty. Minister Davies also appealed to the private sector and government to seriously consider procuring goods and services from cooperatives, thereby forming a strong symbiotic relationship.
The Chairperson of the South African Chapter of the United Nations International Year of Cooperatives Coordination Committee, Mr Wellings Maseko also bemoaned the high mortality rate of cooperatives in South Africa. He appealed to all spheres of government to initiate programmes that are aimed at assisting cooperatives to survive.
“The committee has come with numerous proposals that must be implemented in order to reduce the mortality rate of cooperatives from 80% to 20%. These include providing them with skills development and training, designating more products and services that the government and private sector can only procure from them and working closely with international institutions such as the International Cooperatives Alliance and International Labour Organisation,” said Maseko.
The Director of the International Labour Organisation Mr Vic van Vuuren said cooperatives were currently providing employment to more than hundred million people worldwide.
The MEC for Finance, Economic Development and Tourism Northern Cape, Mr John Block expressed appreciation that the event was hosted in the province as it would assist to raise awareness about cooperatives in the Northern Cape.
Enquiries:
Sidwell Medupe
Departmental spokesperson
Cell: 079 492 1774
Tel: 012 394 1650
E-mail: MSMedupe@thedti.gov.za
Trade and Industry (the dti) to establish a cooperatives development agency
