No relief for Grassroot CSOs & Co-operatives in South Africa

No relief for Grassroot CSOs & Co-operatives in South Africa

By Sizwe Mkwanazi, Africa Cooperatives Institute of SA | 20 April 2020

Cooperatives and charity organisations play a key role in the livelihoods of most vulnerable South Africans. These organisations make up the progressive organisations sector. They stand up for human rights, fight against gender based violence, run feeding schemes and are at the forefront of fighting the virus in a number of ways. 

Women, youth and the unemployed people of our country have worked hard organising themselves into cooperatives in different sectors. Their fledgling cooperatives are at the risk of complete collapse and not only because they cannot meet the criteria for most of the relief funds, but because they are not confident in the system since it does not recognise the sector in its own right. The lack of support intended specifically for cooperatives and charities in South Africa is nothing but another disaster waiting to happen.

Most of these NGOs, NPOs and CBOs are distributing information in different communities during this time through whatsapp, facebook and other methods. Their facilities are used as distribution centres for the food parcels and other administrations relating to the different relief programmes. Even though there is not an established way by which these organisations can apply for permits to operate during this time. Orphanages are having to take care of many children and old age facilities are working around the clock to ensure that the elderly are not exposed to the virus. These charities are responsible for most girl children in South Africa and provide them with sanitary towels, toiletries and other needs. It is true that some charity organisations are more privileged and well supported during this time especially the bigger ones. 

However, grassroot charity organisations are sidelined and have been stripped off the opportunity to impact positively on their communities during this time. It cannot be correct that community based organisations and home-based care centres remain sidelined in funding allocations and financial relief. Donations have dried up during this time and private corporations are unable to donate, therefore the relief efforts of the state should be extended to charities. 

Cooperatives are the last hope for most unemployed South Africans and millions of people around the world. In 2012 there were over 22 000 registered cooperatives in South Africa. The continued development of cooperatives and initial funding prompted communities to organise themselves under the banner of solidarity based economic activity. In the nine provinces of South Africa women were encouraged to lead the formation of agricultural, sewing, clothing production and retail cooperatives. In KwaZulu Natal for example, about 50% of registered cooperatives are led by women. They depend on their cooperatives to sustain their livelihoods, families, they use their income to send children to school. These cooperatives provide access to affordable goods and services in their communities. If they collapse during this time, communities will suffer greatly and this will mean a loss of a real opportunity to create jobs and shared wealth.

My plea to the President is that funds should be allocated to specifically address the needs of community enterprises such as cooperatives and charitable grass-root organisations. There has to be an established way of obtaining permits to operate like there is for the private sector. If the interest of President Cyril Ramaphosa is to protect and sustain livelihoods, then progressive organisation must be given funding relief. As people are being put out of jobs, community based enterprises will be the ones running programmes responding to job creation, feeding the children of those who cannot work, helping the victims of domestic violence, people living with disabilities and the educational needs of society. Cooperatives, since they are member based organisations, are under pressure to take care of their members’ needs and to provide employment. Therefore, funding instruments targeted to cooperatives will boost the sector and provide for some opportunities in various communities.

Although the leadership that the government has been able to provide during this time is commended elsewhere. I still feel that an important sector has been sidelined from most if not in all of the funding

relief efforts under the directives of the Covid-19 Command Council. The National Development Agency (NDA) as a custodian for cooperatives and other community based enterprises has failed to develop initiatives to address the needs of the sector during this time. The National Lottery Commission has also failed the charity sector with its silence on disbursing of funds to those approved funding recipients who applied last year. While some opportunities have been made available for cooperatives to bid for government contracts in terms of supplying face-masks and other goods; the sector remains uncertain about the prospects of success in this regard. 

The tendency of the government to pay suppliers late is a major concern for most cooperatives and the lack of transparency in the bidding processes. Transparent systems are necessary in government bidding and a 15 days turn-around time on bidding applications and payments should be implemented. We ask that targeted funding relief for cooperatives and charitable organisations be set up by the Department of Small Business Development, NDA, National Lotteries Commission and other key stakeholders. Without a successful community enterprise sector the government runs a risk impoverishing millions of vulnerable South Africans that are beneficiaries of charity work and loss of earnings for cooperative worker-members.