Call For Tougher Regulation Of Co-operatives

Pauline Dikuelo | Monday March 7, 2016 14:53

According to Mosienyane, local co-operatives need proper regulation to ensure smooth running especially that a lot of them have closed shop because of incompetent management that lacked regulation.

“Co-operatives when properly regulated can contribute to the economy by creating jobs. They play an important role especially to the rural societies,” he said.

In addition, Mosienyane said Co-operatives, which currently contribute less to the economy, need to vigorously brand and market themselves in order to attract a huge clientele base.

Recently, the Ministry of Trade and Industry (MTI) has been implementing the Co-operative Transformation Strategy, which aims to revive and resuscitate Co-operatives in the country.

The current drought and outbreak of the Foot and Mouth Disease (FMD) has also affected the performance of the livestock marketing Co-operatives resulting in the reduction in livestock marketed to abattoirs.

Co-operatives are also facing stiff competition from local and multinational companies hence the need to diversify in order to be relevant in the industry that is also dominated by technological advancement. Currently, there are 236 registered Co-operative Societies throughout the country, with 137 of them being operational, 25 dormant, 42 as start-ups while 32 are under liquidation.

A total of 37 out of the 137 operational Co-operatives are leasing out their properties for different trading activities including butcheries, furniture shops and distribution centres.

Last year, Botswana signed a Memorandum of Understanding (MOU) with Republic of Kenya for Co-operation on capacity building, trade and promotion, exchange of information, tourism, agriculture, finance, livestock, food stuff, consultancy, research and development, investment and Co-operative colleges.

The Cooperative Movement in Kenya contributes significantly to their country’s GDP with an aim to empower citizens, realise their socio-cultural and economic capacities using locally available or generated resources.

Last year, the Selebi-Phikwe miners Savings and Credit Cooperative Society (SACCOS) and its Lobatse counterpart, Itsheseng Savings Credit Cooperative Society formed a joint venture in order to improve their economic standing.

Through the partnership, both societies agreed to be joint owners of a shopping complex bought at a cost of P4 million in Lobatse in which the overall management and control of the business will be vested upon the boards of both societies.