Document: The DTI Cooperatives Handbook 2010

The promotion of co-operatives, a flagship 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. There is a highly developed co-operative sector, operating in the first economy. There are also co-operatives operating in the mainly informal, marginalised and unskilled economy, populated by the unemployed and those unemployable in the formal sector.

 

The government is committed to enhancing the co-operative sector, with due observance of the universally accepted definitions, principles and values central to co-operatives. To this end, it has established agencies with the sole aim of supporting small businesses and co-operative enterprises and provided the requisite funding, as well as guidance, training and other assistance.

 

The Co-operatives Act of 2005 and the Co-operative Banks Act of 2007 provide the legislative framework for promoting and regulating co-operatives.

 

The government has launched various programmes to ensure that it realises the 2004 – 2014 objectives set for the co-operatives sector. These include the Co-operative Incentive Scheme (CIS), which is a direct cash grant, as well as the Export Marketing and Investment Assistance scheme and the establishment of the Isivande Women’s Fund. Funding is also channelled through various funding vehicles set up by provincial agencies, such as the Free State Development Corporation’s (FDC’s) Co-operatives Fund, the Gauteng Enterprise Propeller (GEP) and Ithala Development Finance Corporation, among others. The Land Bank and the National Youth Development Agency (NYDA) also provide financial and other advisory support to co-operatives.