14 March 2007
Co-operatives are an organised formation which is indeed the answer to our
challenge of poverty.
This was expressed by KwaZulu-Natal (KZN) Premier Sibusiso Ndebele at the
signing of a Memorandum of Understanding between the Co-operatives College of
Kenya, Insika Rural Development Trust and the provincial government of
KwaZulu-Natal in Pietermaritzburg earlier today (14 March 2007).
We envisage that secondary co-ops will be incorporated in poultry
production, beef production, vegetable production, beans production and
mechanisation programme in every district in our province. A combination of
grant funding and loan capital will be used to drive the programme.
Government remains committed to offering a market for co-operatives to
trade. We commend the Department of Health for leading the way in the
procurement of linen, fresh produce and meat for public health institutions. We
urge more departments to do the same.
South Africa, as a small to medium-sized economic power with an open economy
which is dependant on international trade, will have to play a role in the
constructive advancement of the new "economic" world order towards a more
equitable set of practices.
KZN supports the concept of a developmental state and the promotion of an
African Renaissance and the New Partnership for Africa's Development,
particularly through trans-frontier relations. Provincial international
relations strategies will directly target international alliances that address
national and provincial needs and priorities, for example Accelerated and
Shared Growth Initiative for South Africa and the Provincial Growth and
Development Strategy.
We need to understand where the desperately poor people are concentrated,
and develop social safety net interventions and employment creating programmes
aimed at lifting these communities out of extreme poverty and perpetual
dependence on welfare assistance. It is precisely this objective which has
driven the integrated basket of government social development and upliftment
programmes in extremely poor localities such as Nkandla and Msinga within the
framework of Operation Mbo.
Perhaps the most common type of consumer co-operatives in South Africa today
are stokvels (buying clubs), which are generally small and not integrated into
any national network.
As the name suggests, a 'co-operative' is all about working together towards
a common goal. This goal could be anything from saving money, building houses
or starting a business.
Worldwide, some 800 million people are members of co-operatives, and it is
estimated that co-operatives employ about 100 million people.
In August 2005 the Co-operatives Development Act was passed in South Africa,
laying the foundation for a more active and supportive environment for
co-operatives. The registration procedure is simple, it re-defines government's
role as a facilitator in promoting co-operatives, it provides for different
types of co-operatives in all sectors of the economy and ensures co-operative
principles are observed.
The culture of co-operatives is here to stay and is growing. We need to make
it clear that co-operatives are not entities established and run by government
but are a community movement created for the benefit of the members while
government creates a supportive environment for co-operatives to survive. We
look forward to members of co-operatives reaching several millions in the
not-so-distant future in this province.
Enquiries:
Logan Maistry
Spokesperson to Premier Ndebele
Cell: 083 644 4050
E-mail: maistryl@premier.kzntl.gov.za
Issued by: Office of the Premier, KwaZulu Natal Provincial Government
14 March 2007
