South African Co-ops defend the Cooperatives Act

South African Co-ops defend the Cooperatives Act

Cooperative leaders marching to the Department of Small Business Development in Pretoria to hand over a memorandum of demands. Picture: Masonwabe Fuma

The South African Coops Association Retail Network (SACARN) is planning a march rallied by Cooperatives to hand in a memorandum to the Department of Small Business Development (DSBD) at their head offices in Pretoria. The march comes as a result of Cooperatives rejecting the DSBD’s second wave programme called Township and Rural Entrepreneurship programme (TREP) which was approved by the cabinet in February 2020.

The Department unveiled the TREP programme as the second wave of financial relief scheme that is expected to rescue townships and villages adversely affected by the covid-19 lockdown. Hon. Ms Khumbudzo Phophi Silence Ntshavheni, the Minister of Small Business Development said the scheme aims to benefit informal, micro, and small enterprises including cooperatives based in townships and villages and has become an intervention in addition to the spaza support scheme unveiled in March.

SACARN has in many times complained that the department has been ignorant towards cooperatives especially during covid-19 lockdown. It alleged there was lack of targeted support for coops by the department. “Off late, the TREP programme seeks to reverse the achievements made in improving communities through coops and in the process the South African Co-operatives act is overlooked” it said.

Africa Cooperatives Institute of South Africa (ACI-SA), a sister initiative of SACARN has played a key role in consulting with the Cooperatives and providing support to the march. Its Associate director and interim leader, Mr Sizwe Mkwanazi said that the department has been for the longest time ignoring the cooperatives call especially when it came to Personal Protective Equipment (PPE) tenders.” How can the department want to bundle the cooperatives with spaza shops, while there are so many outstanding issues with the department and the cooperatives,” said Sizwe.

He further said that out of all the cooperatives in the country, only about five of them were given the chance to procure PPEs.

On 5, November, the network will march to the department of Small Business Development along with 35 cooperatives who will be in attendance. Among the cooperatives will be the Bumbisizwe Design and Décor, Ekurhuleni Women's initiative hub and Imbokodo Tshilo Projects. They will hand over a memorandum of demands with main issues like the zero-public procurement from cooperatives and zero interventions directed at cooperatives affected by the economic slowdown and covid-19 lockdown.