Programme Director, Vuyo Zitha
President of the ICA, Dame Pauline Green
Vice-President for ICA Africa, Mr Stanley Muchiri
Director General for ICA, Mr Charles Gould
Head of the Department of Economic Development and Tourism, Mr Solly Fourie
President of South African National Apex Cooperative, Mr Lawrence Bale
Honourable members of the ICA
Friends
Ladies and gentlemen
It gives me great pleasure to welcome you to the Southern shores of Africa on behalf of the Government of South Africa and its people, the African continent and the ICA Africa. After 18 years of its democracy, South Africa is honoured to be given this rare opportunity to host the ICA Board Meeting on behalf of the ICA Africa and the African continent.
This is indeed a watershed event and a strong statement of recognition by the ICA leadership of the African cooperative movement and the role and contribution it is making in the international cooperative movement.
What is more telling, is the fact that this event is taking place in Africa, during the 2012 United Nations International Year of Cooperatives, which is further a testimony to the recognition of the African continent as a partner player in the development of the global cooperative movement.
The seven principles of cooperatives, which taken as a whole, constitute the cornerstone of cooperative good governance that guarantees sustainability of cooperatives. We are starting to learn that there are proposed changes to Principle No. 7, Concern for Community, which will now include reference to the environment. We are pleased to learn of these new developments.
As the ICA Board Meeting convenes this week, you bring with you a long rich history wherein this organisation is this year celebrating its 117th year of its existence. This resilience of the organisation is a reflection of the resilience of the cooperative as a business model that has survived the test of time. I would like to congratulate the ICA as an organisation that has built cooperatives throughout the globe that have become formidable businesses that have a huge impact in the global economy.
Cooperatives constitute a significant part of the global economy. We have learnt that according to your Global 300 Mechanism, the top 300 cooperatives around the world had nearly US $1 trillion in revenues as far back as 2007. This I assume you might have surpassed. Overall cooperatives create over 100 million jobs in the whole world, more than all of the multinational corporations combined also as far back as 2007.
There is no denying that cooperative enterprises contribute to every sector of the world economy and are amongst the largest businesses in the world. During the global financial and the subsequent economic crisis cooperatives without doubt demonstrated as the most resilient enterprises compared with the investor owned enterprises; particularly where they have strictly adhered to the core seven principles in conducting their business transactions.
Cooperative development in the African continent has evolved from various stages. Here in the former Cape of Good Hope, the first bakery and retail cooperative was established during those early days of the founding fathers of the Cooperative movement in Britain, in the latter part of the 1800s.
In our historical archives, letters exist of these early pioneers within our country, where they were communicating with the Rochdale counterparts of the international cooperative movement in Britain on matters of mutual interest. However, we must admit that during these early days of the cooperatives within our continent, cooperatives were solely in the hands of European Settlers, wherein indigenous populations were either deliberately excluded or not encouraged to participate due to, amongst other things, policies of racial discrimination.
In the post-colonial era, in the most liberated African states, the relationship between cooperatives and government was intimately much closer to the extent that, by default or design, the cooperatives were an extension arm of the state. This meant that the key principles of cooperatives, as later espoused in the ILO Recommendation 193, were not adhered to.
The unintended consequences were the unsustainability of cooperatives due to their heavy dependence for their survival from the state. Once the support from the state was withdrawn most of these cooperatives collapsed.
A new dawn has emerged in the continent wherein most African States have adopted legislations and policies that are fully in line with the ILO Recommendation 193. Cooperatives that are established under such enabling legislative environments, wherein they fully adhere to these seven noble principles are placed on a sound and sustainable path.
For example, South Africa is currently in the last stages of finalising its Cooperative Amendment Bill with a greater emphasis being placed on adherence to these seven principles, as well as, enhancing the capacity of the state to provide support to cooperatives in line with Recommendation 193. By the way, South Africa became a signatory to the ILO Recommendation as far back as 2002.
We, in the South African government have no doubt that through such an approach, our cooperatives will develop and assist the country towards reducing social ills such as, high unemployment particularly among the youth and women, poverty and inequality. Africans are steadily coming to realise and see cooperation with one another through cooperatives as an effective means of securing goods and services that alone they would be unable to provide or afford for themselves.
The United Nations International Year Cooperatives, 2012
2012, the United Nations International Year of Cooperatives affords us all, as cooperators and cooperative partners an opportunity to intensify the focus and appreciation of cooperatives, as well as, the valuable contribution they are making towards the social and economic development of their members and the surrounding communities.
It also affords us the opportunity to seriously communicate the valuable and significant contribution cooperatives are making globally in the areas of concern for the environment, fight against the scourge of HIV, reduce youth and women unemployment, as well as, social and economic development.
In South Africa, as in many other African countries, we have welcomed and embraced this opportunity and we are making the most that 2012 has to offer. Concretely, we have taken a deliberate decision to use 2012 as a baseline against which we will measure our future awareness campaigns for cooperatives.
In coordinating the activities for the United Nations International Year of Cooperatives, a Coordination Committee, which consists of representatives from the cooperative movement, government, the business community and other key development partners, was established. This committee has been meeting regularly and has been coordinating the key activities we have planned for the year under the theme, "Cooperative enterprises build a better world".
This is the taste of some of the activities that we have planned for the year youth cooperative campaign, cooperative campaign focussing on women and people living with disabilities, a Cooperative Business Indaba to promote partnerships between emerging and established cooperatives and a campaign on cooperative businesses opportunities available within the green economy.
The youth campaign has already taken place during this month. In this regard, the National Youth Development Agency together with the Department of Trade and Industry have hosted the June 16 Commemoration with cooperatives invited to showcase their products and services to young people.
The next big event for the committee is the planning and hosting of the International Day of Cooperatives Celebrations that will be taking place in Kimberley in the Northern Cape province on 6 and 7 July 2012. We regret that the ICA Global Board Meeting could not coincide with the International Day’s Celebrations so as to allow you, our foreign dignitaries, a rare opportunity to witness how cooperatives in South Africa celebrate this prestigious international day.
Inter-Ministerial Cooperatives meetings
Development of cooperatives in the African continent is on the rise and a good enabling environment is being patiently and steadily constructed by the leaders of Africa, working in partnership with the cooperative movement.
The Inter-Ministerial Cooperative Conference for African Ministers has agreed on several resolutions to drive and strengthen cooperatives in the whole of Africa. There are 16 areas identified by African leaders supported by ICA Africa which are set to be rolled out to support cooperative development on the Continent. Most of these areas are in alignment with the agenda of the ICA and in compliance with Recommendation 193.
Allow me to pick a few of these, the development of policies and legislation in line with Recommendation 193, development of financing tools aimed at supporting cooperatives, focus on addressing gender imbalances within cooperatives, formulate strategies geared to improve youth and women participation in cooperatives, provide a much sharper focus on member empowerment and human resource development within cooperatives.
The Inter-Ministerial Cooperative Conference for African Ministers has also resolved to provide funding to the ICA Africa office to ensure its capacity and sustainability. Ministers are also committed, amongst other things, to bench-mark continental cooperative development with other regions of the world as well as, set new goals to ensure that we improve our performance year-in year-out in order to see a leap forward with regard to cooperative development. African leaders are convinced that cooperatives have a big stake in the development of the African continent.
Levels of cooperation
The South African Government, working in partnership with the cooperative movement, are committed to the growth of cooperatives and view cooperatives as a meaningful player in the drive to eradicate poverty and unemployment in our country. In turn, government is providing requisite support towards cooperatives to ensure their growth and success.
Through the 2005 Cooperative Act, South Africa has adopted a three-tier cooperative system. Guided by the full recognition that for the cooperative sector to grow all the tiers of the cooperative system must be developed, the RSA government has provided various support interventions towards the establishment and development of the National Apex Cooperative(s).
One of the major National Apex Bodies that has emerged in our country is The South African National Apex Cooperative (SANACO), which is already well known to this esteemed organisation, i.e. ICA, which is represented here tonight by its President, Mr Lawrence Bale.
We will continue to assist in strengthening primary cooperatives so that they can form the backbone of the upper level structures. We have seen over the last few years the resilience of the cooperative model in our economy as well.
Our cooperatives, particularly the large and strong ones within the agriculture sector have weathered the global economic and financial crisis. Cooperatives could as well be the answer to assist in turning around the fortunes of the European economy, which is currently strangling the global economic recovery.
The African continent is currently suffering high levels of poverty, unemployment and underdevelopment and in the mist of the attention of the world much more focus is on the concerns of the European economy. We are urging our global partners not to forget the African continent whose plight is far much worse. We can count on our global partners such as ICA to assist us and work with the continent in addressing the noted challenges.
International Cooperative Alliance (ICA)
South Africa is fully integrated into the ICA family and we will continue to strengthen this partnership in years to come. We recognise the role of organisations such as ICA in supporting and standing with the Continent in its efforts to free itself from the remnants of colonialism and apartheid.
We are holding hands with you, as we march to the future in addressing issues of underdevelopment, high levels of youth unemployment and marginalisation of poor people. We hope that our collaboration with the ICA, through ICA Africa will grow from strength to strength as we grow our cooperatives in the continent of Africa.
On behalf of the South African government, the continent and ICA Africa, I would like to thank the ICA leadership for selecting Africa as an ideal continent of choice for the hosting of the 2012 ICA Global Board meeting.
I hope you will enjoy the warmth of the South African climate and its beautiful scenery as well as the hospitality of its people. We have prepared a wonderful site-visit for you. We have taken the liberty to ensure that we expose you to the excellent taste of South African wine.
In conclusion, I wish you successful and fruitful deliberations in the coming days of your meetings and since I won’t be seeing you again, have a safe journey back home.
I thank you for listening.
