E Thabethe on co-operatives funded by Trade and Industry

2 February 2009

The Deputy Minister of Trade and Industry (thedti), Elizabeth Thabethe,
expressed satisfaction at the progress made by a co-operative funded by
department’s Co-operative Incentive Scheme (CIS). Thabethe today visited the
Melokuhle Co-operative, situated in the Pretoria central business district. The
co-operative, which specialises in interior and exterior design, is highly
operational and has already completed work with the Department of Public Works,
Tshwane University of Technology and the Delmas Clinic.

The purpose of the site visit was to acquire first hand information on
progress that the co-operative has made and challenges that it may have
experienced since it received funding from the dti three years ago.

“I am really happy that we supported this co-operative, with an amount of
R300 000 in 2006. Today, they have not only survived, but have made good
progress. To me, this shows that we did not make a mistake when we gave them
the money. They have been a good risk for the department to take. The purpose
of the scheme is to assist co-operatives like this one, which have potential to
grow and create job opportunities for other people,” said Thabethe.

She added that the dti would ensure that more co-operatives are benefiting
from the scheme in order to combat poverty and underdevelopment, and boost
employment creation. Thabethe noted that the co-operatives model has worked
well in other countries like India, and expressed her confidence that the model
would go a long way in bridging the gap between the first and second economies
in South Africa.

The CIS was created to reinforce the initiatives of government towards the
development and promotion of co-operatives as a viable form of enterprise in
South Africa. The CIS is one of government’s support measures towards realising
the 2004 to 2014 objectives presented in the Government’s Co-operatives
Development Strategy. The incentive scheme targets registered co-operatives
operating in the emerging economies, which are eligible for a total grant not
exceeding R300 000.

The Chairperson of the CIS adjudication board, Ruth Masoakane, said the
scheme had disbursed R3,8 million to 18 co-operatives in its first year. From
2007 to date, 77 applications to the value of R13 million have been approved
and R1,2 million has already been dispersed to those co-operatives that have
been approved.

The Chairperson of the Melokuhle Co-operative, Thandi Lekhuleni,
acknowledged that financial assistance provided by the dti has greatly assisted
her in establishing and growing her co-operative.

“We used the money we received from the Department of Trade and Industry to
buy machines and the building we are operating from in the city centre. We also
managed to employ four people who are helping the five members of the
co-operative. We are now planning to expand the business and look for bigger
premises,” enthused Lekhuleni.

Thabethe will also visit the Fundani Kusile Co-operative, in Mpumalanga, on
16 February 2009, and will attend an exhibition and conference, with the
prospective participation of about two hundred co-operatives in the North West.
It will be hosted by the Wolmaranstad based Phalaneng Co-operative.

For more information, contact:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: msmedupe@thedti.gov.za

Issued by: Department of Trade and Industry
2 February 2009