THE ROLE OF COOPERATIVES AS ENGINES OF ECONOMIC DEVELOPMENT IN THE SOUTH AFRICAN COMMUNITIES . BY

1. THE ROLE OF COOPERATIVES AS ENGINES OF ECONOMIC DEVELOPMENT IN THE SOUTH AFRICAN COMMUNITIES. BY SANACO

2. OUTLINE • SANACO • POLICY FRAMEWORK • OBJECTIVES • SUCCESS AND IMPACT • CONCLUSION

3. South African National Apex Tertiary Co-operative • SANACO is an autonomous association of secondary and tertiary cooperatives united voluntarily to serve the socio-economic interest and aspirations of all cooperatives in the country. • It is the embodiment of the cooperative movement in the country. • It is a full member of the International Cooperative Alliance, a global representative body of cooperative. • Participate in NEDLAC • Currently the law makes provisions for three levels of cooperatives starting with the primary, secondary and the tertiary. • SANACO is currently registered as the tertiary cooperative until the amended law is operationalised. • Annually, working closely with the department relevant Cooperatives under the stewardship of SANACO celebrate the international day of cooperatives and in the recent celebration attended by more than 600 cooperative structure SANACO was reaffirmed by the cooperatives across the country as the single apex body as envisaged by the amendment Act of 2005. • This year SANACO was formed in 2009, 01st October. Convenes annual compliance conference

4. Our Common Agenda • The majority of the communities are facing hardships, unemployment, poverty and inequality and hence the government’s decision to make ‘coops’ as agents of social economic development. • The South African government decided during the Presidential Growth and Development Summit held to endorse special measures to support cooperatives as part of strategies for job creation in the economy. • In order to address the high rate of unemployment and poverty, the government came up with the concept of “Vukuzenzele” which implies that people must be initiative and do things for themselves instead of waiting for “hand outs”.

5. Policy Framework • In 2004 the new democratic government launched the Cooperatives Development Policy and later in 2005 promulgated the cooperatives Act, No. 14 of 2005 as amended. • In 2010, the Department of Trade and Industry launched the Integrated Strategy on the Development and Promotion of Cooperatives which sets out an implementation framework of the policy and the Act.

6. OBJECTIVES OF SANACO • To advance and empower all member cooperatives and their business • To engage and lobby all organs of state, private sector and stakeholders on behalf of cooperatives • To play any other deemed to be the role of an Apex Cooperative Movement of South Africa to advance the development of cooperatives • As an apex it shall act as a mouthpiece of the cooperatives in connection with any other matter of mutual interest to the cooperative movement in general • To organize and represent the interest of cooperatives existing within the different sectors and regions of their functionality • To facilitate education and training for cooperatives • Strive to establish and maintain an audit fund to assist cooperatives to comply with the law • To represent the cooperative movement of South Africa in the Continent and Worldwide • Strive to advance the definition and principles of cooperatives as outline in the Coop Act of the country • To cooperate and/or collaborate with other formations in building the South African economy through cooperatives • To establish a cooperative development trust to mobilize support for the cooperative movement development.

7. SANACO OPERATIONS The strategic pillars for the support programmes for cooperatives • To increase non-financial support services to cooperatives i.e working with various department and other stakeholders • To increase a demand for cooperatives products and services i.e procurement dedicated to cooperatives • To improve sustainability of cooperatives i.e mentoring and monitoring of the cooperatives • To increase financial support services to cooperatives i.e grants and loans

8. 5 KEY OPERATIONAL ACTIVITIES • Representation of Cooperative interest (advocacy and lobbying • Compliance focusing on Auditing • Cooperative Education and Training • Consulting services • Support for Cooperatives

9. ACTIVITY 1 On Representation • Communication: Information on current developments within the cooperatives movement as well as on current political issues our members • Politics: Development of positions in the interest of cooperatives; by having regular meetings with government • Committees: Positioning cooperatives interests in Executive Committees

10. ACTIVITY 2 On Compliance • Mandatory: Auditing of annual financial statements as required by the legislation • Additional Service: Comprehensive audit of all areas of the business with the aim to support the cooperatives • New members: Audit for cooperatives in the foundation phase • High quality standard: Engage on regular peer reviews for cooperatives development

11. ACTIVITY 3 Cooperative Education and Training • Cooperative Academy: Ensure that proper cooperative training and education institution are accredited • Human Resource: Ensure proper and qualitative employee training for cooperatives development • Seminars and Workshop: Ensure that personal and professional training, tailormade programs are developed

12. ACTIVITY 4 On Consulting Services • Business: Provide individual consulting with cooperatives • Human Resource: Recruiting and employee satisfaction for cooperatives development • Legal: Ensure that proper legal advice is provided to cooperatives in line with their sectors • Tax: Ensure that cooperatives are Tax Compliant • Networking: Create a platform for cooperatives to maintain constant interaction and cooperation

13. ACTIVITY 5 Our Support • Information: To provide regular briefings on new regulations that affect cooperatives development • Exchange: Allow cooperatives to exchange views and ideas on strategic challenges that are facing each sector of the cooperative • Advice: In special cases the mergers that will have a qualitative contribution in the cooperative • Foundation: Provide the necessary support for cooperatives at the initial stages

14. ACHIEVEMENTS • Increased awareness about the cooperatives concept • A comprehensive support policy framework in place i.e ILO Recommendation • Hosted the cooperative international events i.e ICA General Assembly, BRICS Cooperatives leaders meeting and SADCCF • Established women and youth cooperatives structures • Provincial cooperative structures for coordination and interaction with provincial as well as local government have been establised • International and national expos for cooperatives i.e exhibitions • Availability of training programmes for cooperatives i.e 2011 National Cooperative Conference • Availability of funding to cooperatives with access challenges • Signed partnership agreements with government departments as well international organisations

15. ACHIEVEMENTS IMPACT • Increase cooperative registration • Development of women cooperatives • Employment for cooperative members • Skills development for members of cooperatives • Unity amongst cooperatives

16. CONCLUSION • The communities must be developed in various ways: inter-alia Housing and Construction, agriculture and agro-processing, manufacturing, mining, arts and culture, tourism, retail services, financial services, etc. • It is clear that if all cooperatives in South Africa can plan strategically and back their plans with business and operational details, they will transform the country tremendously.

17. CONCLUSION THANK YOU www.sanaco.coop info@sanaco.coop diteko@sanaco.coop