Cabinet last week approved the National Cooperatives Development Policy, which is premised on strengthening cooperatives’ growth and sustainability.
The policy, which would be implemented for the next five years to 2029, is structured to provide a conducive and enabling environment for the growth and sustainable development of cooperatives.
It replaces the Cooperative Development Policy of 1997 which, according to an analysis from the Ministry of Trade, had key shortcomings such as the lack of an implementation plan and weak monitoring and evaluation criteria.
While the number of cooperatives has significantly grown over the years to 2,041 in 2023, the sector’s input to gross domestic product has stagnated, with quality of their operations also remaining relatively poor.
The new policy is, therefore, built to foster coordination, strengthen linkages within the sector and enhance inclusiveness and resilience of cooperative societies for growth, according to Ministry of Trade Director of Small and Medium Enterprises Limbikani Kachiwaya.
He said the policy would assist in coming up with secondary cooperatives which will identify value chains for enhanced production and value addition for the export market.
“Once we satisfy the local market with products by the cooperatives, we can now talk about import substitution and ensure massive production, which will assist us target the export market.
“Our plan is to make sure that we identify secondary markets that will be able to supply to secondary markets,” he said.
Key on planned outcomes in the implementing period of the policy dictates include strengthened legal and institutional environment and improved capacity of cooperatives with viable business models contributing to social and economic growth.
It is structured to enhance the provision of quality products and services, increase member benefits contributing to individual and national wealth creation and enhance stakeholder collaboration and coordination.
