Today, the National Youth Development Agency and the Limpopo Department of Agriculture (LDA) signed a Memorandum of Understanding (MOU) aimed at supporting youth-owned cooperatives in the agricultural sector.
According to NYDA Executive Deputy Chairperson, Kenny Morolong, agricultural cooperatives play a crucial role in economic development, job creation and in effectively promoting sustainable livelihoods. “Cooperatives are the main focus of the agreement because the co-operative model can generate sustainable employment in massive scales and promotes the utilisation of local resources,” says Morolong.
The NYDA recently announced the R10 million Mabhida Youth Cooperatives Grant Fund that offers grants ranging from R1000 to R100 000 to youth-owned cooperatives across the country. With this agreement, the NYDA and LDA will jointly identify Limpopo-based young aspiring and established cooperatives between the ages of 18 to 35 years who require the grant for business start-up or growth.
The grant funding will be complemented by non-financial business support services that include training, mentorship and market linkages. The application process will officially open on 1 August 2013.
Every year the first Saturday of July is used to celebrate International Cooperatives Day and the entire month of July is also used to create awareness about the cooperative model and its benefits. This year’s theme for Cooperatives Month is Cooperative enterprises remain strong in times of crisis. The theme links to the global economic crisis and how cooperatives have proved to be resilient to the effects of the crisis compared to other forms of enterprises.
Limpopo Agriculture MEC Jacob Marule says, “the signing of the MOU could not have come at a better time than now as it is also important to draw young people into farming and retain those who are already in the business. I believe that the MOU that has been concluded will later be translated into a project cooperation agreement that will go a long way in capacitating young farmers to participate in the mainstream of our economy. This partnership will help to stimulate a positive environment for organised agriculture and agribusiness through cooperatives in the Limpopo province.”
The MEC further emphasised that rural economic development and infrastructure are also key to attracting and retaining young people in the farming business. “Rural communities and small businesses that support the agricultural sector require additional investment, including expansion of physical and technological infrastructure,” he says.
In conclusion Morolong says, “tackling young people’s challenges and reducing the unemployment rate is not something that one institution can achieve. The enormity of the unemployment challenge and the destructive effect it has on our society means public, private and civil society organisations and all South Africans have a key role to play. We are therefore pleased to work with the Limpopo Department of Agriculture and urge other partners to come on board.”
For media enquires please contact:
Refilwe Mphane, National Youth Development Agency
E-mail: refilwe.mphane@nyda.gov.za
Tel: 011 651 7175
Cell: 071 037 6559
Nhlonipho Chabangu, Limpopo Department of Agriculture
E-mail: ChabanguNRA@agric.limpopo.gov.za
Tel: 015 294 3187
Cell: 082 219 5516
