Lobatse, Selebi-Phikwe cooperatives form partnership

Onalenna Kelebeile | Wednesday February 4, 2015 11:31

Both societies have engaged their legal advisors to draft the agreement that will govern this partnership.

Outgoing Selebi-Phikwe SACCOS chairman Western Ebepile said both societies have agreed to be joint owners of a shopping complex bought at a cost of P4 million in Lobatse. He said the overall management and control of the business of the joint venture would be vested upon the management board of both societies.

He further said Selebi-Phikwe SACCOS should contribute the property with all the developments, and Itshetseng SACCOS upon signature of the agreement shall pay Selebi-Phikwe SACCOS half of the total expenses incurred in acquiring the property.

“Upon payment Itshetseng SACCOS would then be a joint owner of the property. The net profits and losses of the joint venture shall be allocated equally between the two societies,” said Ebepile.

The annual general meeting also heard that both societies are currently in the process of sourcing funds from the bank to start the construction and a lease agreement with anchor tenant (Choppies Stores) has been secured. “Pep Store and Pula Energy have also shown interest by submitting their letters of intent.

We are very optimistic that this shall be an income generating investment,” he said. Selebi-Phikwe SACCOS also announced that the last financial review shows a significant growth in the society’s assets, and the financial position of the society also appear to be stable. “We allocated some of the profits generated to the general membership as bonuses. This was done to create a sense of ownership and motivate members to remain loyal to the society,” said Ebepile.

The director of Cooperative Development, Motse Otlhabanye said he is pleased that Selebi-Phikwe SACCOS has engaged Itshetseng SACCOS in an effort to facilitate a win-win relationship with all cooperative strategic partners. He expressed optimism that the contract consultations were running smoothly and would be completed soon.  The signing ceremony of the joint venture agreement is scheduled to take place this Friday in Lobatse.