Cooperatives urged to diversify source of income

Lebogang Mosikare | Tuesday December 2, 2014 14:49

Speaking at the annual general meeting of Francistown Cooperative Society Limited on Saturday, Otlhabanye said that cooperatives are facing stiff competition from local and multinational companies, so they should diversify their sources of income in order to withstand competition or risk closing.

Said Otlhabanye: “Cooperatives should find a niche in the market and should strive hard to survive in today’s business environment that is dominated by a lot of technological advancement.

He further said: “The youth are also free to join cooperatives. You should encourage them to join cooperatives in large numbers because they have requisite skills that can advance the mandate of cooperatives and bring positive results,” said Otlhabanye.

He said over the past two years, he has toured the country with former minister of Trade and Industry Dorcas Makgatho teaching about the new Cooperative Transformation Strategy of Botswana.

The strategy, he said, emphasises on members’ participation, economic empowerment, youth participation in cooperatives, cooperative identity and branding among other priorities.

The director implored cooperative members to work hand in hand with their management committee in order to reach their dreams.

The guest speaker, former Francistown West member of parliament Dr Habaudi Hobona, said that cooperatives should vigorously brand and market themselves in order to attract a huge clientele base.

Dr Hobona added: “You should recruit skilled personnel to professionally run your businesses. People that you recruit should be abreast of the dynamics of the local and international markets because you are competing with local and international businesses for the same customers,” said Hobona.

Giving a comparative analysis of the cooperative movement in Botswana and Kenya, Hobona said that the cooperative movement in Kenya contributes to about 45 % of the country’s gross domestic products (GDP). “The cooperative movement in `Kenya is one of the nationally organised institutions available to all cadres of persons.

“Its agenda is usually based on locally determined proposals whose aims are to empower citizens to realise their socio-cultural and economic capacities using locally available or generated resources, while in Botswana cooperatives contribute very little to the local economy,” said Hobona.

She added: “Cooperatives in Botswana should aim to contribute in the diversification of the economy. They should strive hard to compete favourably with cheap goods from Asia, which are making the fortunes of local cooperatives to dwindle.”

The Vice Chairperson of Botswana Cooperatives Association (BOCA) Mavis Abotseng expressed concern about some cooperative movements that are not doing well.

She said that cooperatives should educate their members in various business skills that are needed in today’s competitive business environment.