Speech delivered by the Hounourable Minister of Small Business Development, Ms Lindiwe Zulu on The occasion of The International Co-operative Day, Mmabana, Taung
Programme Director
Honourable Premier, Mr Supra Mahumapelo,
MEC for Finance, Economy and Enterprise Development,
Kgosi ya Batlhaping ba Phuduhucwane, Kgosi Tshepo Mankuroane,
Executive Mayor of Ruth Segomotsi Mompati District Municipality, Mr Tladinyane
Mayor of Greater Taung Local Municipality, Mr Kaone Lobelo, Mayors and Councillors,
The President of SANACO, Mr Lawrence Bale, and the entire leadership of SANACO,
Senior Government Officials across all spheres; Distinguished guests
Ladies and gentlemen
I am honoured to be part of this momentous occasion. International Co-operative Day challenges all of us to intensify public awareness around the crucial role that co-operatives play in the development of our communities.
On this day and beyond, we mobilise the entire society to appreciate the critical importance of co-operatives in fostering sustainable livelihoods and pushing back the frontiers of poverty, unemployment and inequality.
International Day of Cooperatives recognises and acknowledges the role that cooperatives do to improve the world's economic and social development and assist in bringing about equality.
International context
The establishment and development of the co-operative movement is a universal global trend. Co-operatives have historically existed in all civilisations in different forms and structures.
Most co-operatives in the world have developed from people’s needs for self-reliance through mutual self-help.
The celebration of International Cooperative Day dates back as far as 1923, wherein the International Cooperative Alliance (ICA) celebrated for the first time this historic day to highlight the importance and increasing awareness on cooperatives, as well as; strengthening and extending partnerships between government and international cooperative movement and other relevant stakeholders.
In 1995 the United Nations also resolved to celebrate the international day of cooperatives; wherein all states signatories to the ILO Recommendation 193 committed themselves through the UN system not only to celebrate and recognised the role that cooperatives play in the social and economic development; cooperatives also create conducive environment for the development of this form of business.
The International Co-operative Alliance (ICA) estimate that the co- operative movement brings together over 800 million people around the world. Furthermore, it is estimated that the livelihood of nearly 3 billion people, or half of the world's population, is generated by co-operative enterprises. These enterprises continue to play significant economic and social roles in their communities. Co-operatives provide over 100 million jobs around the world, 20% more than multinational enterprises.
South African context
In South Africa, this will be our 10th year celebration; which marks a decade. We have chosen specifically to celebrate this very important day through reflection and self-introspection;
Emerging from these two days must be concrete programmes that will enhance the development of cooperatives and ensure that this form of business finds its place in the mainstream of the economy. I am confident that we will emerge with concrete plans and ideas that will empower cooperatives to participate meaningfully in the mainstream economy.
Together, we must ensure that cooperatives have access to markets and that they benefit from the state and private sectorprocurement opportunities. In this area, government has chosen to prioritise providing access to markets to co-operatives and small businesses by allocating 30% set aside for cooperatives.
We must also insist that cooperatives seize opportunities provided by the industrialization programme rollout.
On this important day, let us send a loud and unequivocal message that co-operatives hold some of the answers to the pressing socio-economic challenges that confront us. The triple challenges of poverty, unemployment and inequality that stubbornly stare all of us in the face, require that we change our game plan.
International Cooperative Day offers us a unique opportunity to strengthen and extend partnerships between government and the international co-operative movement, as well as other stakeholders.
This year’s theme, “Choose cooperative, choose equality”, government wants to emphasise the strategic importance cooperatives play in enhancing equality and promoting inclusive economic development. Together, we must give concrete expression to the theme and slogan of this year.
Indeed, inequality has serious negative socio-economic and security consequences. History has shown that co-operatives help to reduce inequality by empowering people through dignified and sustainable ways of making a living.
Co-operatives are a proven force for economic and social inclusion. In other words, if we are serious about reducing inequalities in our country, we must invest in cooperatives.
As Roberto Rodriguez reminds us: “The greatest enemies of peace are social exclusion and concentration of wealth worldwide. Co-operatives not only prevent this, but they empower a billion of people economically both directly and indirectly and as result should be regarded as defenders of peace”.
Cooperatives as a resilient form of business enables ordinary people to easily access business and work opportunities raise savings and extend education and training not only to them, but also to the local communities in which they are operating.
Ladies and gentlemen, one of the most striking things about South Africans that continue to confound critic and admirer alike continues to be our incredible capacity as a nation to rise every day to defeat despair and steadfastly refuse to be passive participants in the process of rebuilding our country. And the co- operatives are an example of this spirit of vuk’uzenzele. Cooperatives by their very nature are about initiative and self- reliance.
Our people have liberated themselves from a culture of passive submission to a culture of vuk’uzenzele. Many of our successful co-operatives are an example of how much we can achieve if we seize the opportunities brought by our democracy and freedom to create a better life for themselves and their fellow citizens. Cooperatives are a passport for our people to take control over their lives and responsibility for their destiny.
The co-operatives whose work we are also celebrating this weekend have refused to be passive spectators in the ongoing reconstruction and development of our country. Instead, they consciously chose to dirty their hands, rather than pontificate from the pulpit; to contribute rather to complain and criticize from the sidelines; to make mistakes and rise up again in the course of creating a better life for themselves and their fellow citizens.
Co-operatives are at the centre of the much-needed village and township economic revival. With the support of government, we must ensure that the services and goods consumed in townships and villages are produced by men and women from those townships and villages.
We are also here to celebrate the cooperatives spirit. In the true spirit of letsema and vukúzenzele, these co-operatives never started with the question: “What will our government do for us?” Instead, they posed the most fundamental question: “What can we do to create a better life for ourselves and our fellow compatriots?” As we mark International Co-operative Day, we are also celebrating this spirit of taking initiative as well as the contribution that co-operatives continue to make in the upliftment of our communities. This year, we have chosen to invite our corporate partners to exhibit and showcase their products, services and opportunities that our cooperatives can seize.
Programme Director, cooperatives are big businesses and are sustainable and resilient. Globally, co-operative enterprises constitute the 9th largest economy in the world and they operate in some of the most competitive industries such as banking, insurance, agriculture, retail, health, utilities and others. The cooperative enterprises are almost worth 1.6 trillion US dollars.
During the global financial crisis which was characterized by massive public bailouts of private, investor-owned banks worldwide, co-operative banks in the form of credit unions and building societies displayed prudence by the manner in which they have primarily focused on the needs of their members and avoiding excessive risk taking. Whilst commercial banks went through difficulty and in many instances had to rely on bailouts, co- operatives banks remained stable.
Cooperatives are by their very nature a means by which social businesses and enterprises are created. Cooperatives are catalysts for economic growth and sustainable development for disadvantaged, vulnerable, and marginalised groups as well as those with limited resource capabilities. Local and international experience shows that the sustainability of these enterprises contributes to poverty alleviation, giving poor people the opportunity to lift themselves out of poverty and its associated forms of deprivation. Cooperatives contribute to the empowerment of poor and marginalised people.
While a lot of progress has been made in the area of cooperatives development and growth, there are still challenges that need to be addressed. Among these challenges are: the lack of adequate economic and social impact statistics on co-operatives covering all sectors; and poor appreciation of the co-operatives business model by the public. Financial and non-financial support given to co-operatives still remains scattered thus making it difficult for co- operatives to effectively access such support easier and much quicker on a wider scale. We are determined to address these challenges.
As part of strengthening co-operatives, the Department of Small Business Development will focus on creating an enabling environment for the development and growth of cooperatives in South Africa. Government will enhance financial support given towards the cooperatives by streamlining financial products in the three spheres of government;
Government intends to also provide institutional support aimed at developing and growing cooperatives and these include: Cooperative Advisory Council, Cooperative Development Agency (CDA), and Cooperative Tribunal (CT).
Programme Director, it gives me pleasure to inform the regulations for the Cooperatives Amendment Act will be published in the Government Gazette for public comment. Once this process has been finalised the Co-operatives Amendment Act No. 6 of 2013 will be proclaimed by the President this year to bring it fully into operation.
Government recognizes that cooperative development cannot be fully achieved by government alone. All our national partners must play their part in promoting co-operative development.
I am pleased to note that our provincial and local government partners are actively supporting the development of cooperatives. Department stands ready to work with all stakeholders to take the cooperative movement forward. We will do this as part of the government’s commitment to set the country on a path of radical economic transformation in order to accelerate our onslaught on the triple challenge of poverty, inequality and unemployment.
I thank you.
