DTI
AGRICULTURE
Co-operatives
The promotion of co-operatives, a ?agship project of the
Department of Trade and Industry (the dti) for the year
2004/05, had the additional purpose of serving as an
initiative to address the needs of the so-called 'second
economy'. While South Africa has a highly-developed cooperative sector, operating in the '?rst economy', there are
also co-operatives operating in the mainly informal,
marginalised and unskilled economy, the latter of which is
populated by the unemployed and those unemployable in
the formal sector. Within this context, the Co-operatives Act
of 2005 and the Co-operative Banks Act of 2007 provide the
legislative framework for promoting and regulating cooperatives in the country.
In addressing the needs of this sector, government has
established agencies with the sole aim of supporting small
businesses and co-operative enterprises. The provision of
co-operative support services, such as education and
training, business advisory services and access to loans,
funding and linkages, is the collective responsibility of the
accredited institutions and organisations that provide these
sought-after services to co-operatives. Technical support
services are also extended via a cost-effective support
service system that makes use of existing support service
providers (e.g. the co-operative movement, non-
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governmental organisations (NGOs), trade unions,
employer organisations, private companies, government
o f? c e s , p a r a s t a t a l a g e n c i e s , a n d d e v e l o p m e n t
programmes and projects).
As per previous mention, the government has launched
various programmes to ensure that the 2004 - 2014
objectives for the co-operative sector are timeously and
effectively met. Among these are the dti's Co-operative
Incentive Scheme (CIS), which is a direct cash grant, as
well as the Export Marketing and Investment Assistance
(EMIA) scheme and other targeted incentives, such as the
Isivande Women's Fund. Funding is also channelled
through various funding vehicles established by provincial
agencies.
The development of co-operatives is critical to the effective
functioning of the South African economy. As such, the
government will continue to provide much-needed support
to co-operatives through public education and training, as
well as the promotion of co-operative development
initiatives in society at large. Further, the dti will remain
steadfast in its commitment to aid and grow this sector of the
economy.
CORPORATE SOCIAL REVIEW