The Cooperatives Amendment Bill would result in the establishment of a Cooperatives Development Agency, which would offer financial and nonfinancial support tailored for cooperatives, Trade and Industry Minister Dr Rob Davies said at the weekend.

Support would be in the form of administration of government incentives, provision of training and improvement of working conditions in the cooperatives sector.

Davies noted that the bill, which was currently going through the Parliamentary process, would go a long way in improving the sustainability of cooperatives and their contribution to the country’s economy.

It also provided for the setting up of a Cooperatives Tribunal and Cooperatives Advisory Council.

He emphasised that the proposed institutions were aimed at assisting the government to reduce the mortality rate among cooperatives and ensuring that they contributed effectively to the country’s economy.

The Minister appealed to the private sector and government to seriously consider procuring goods and services from cooperatives to form a strong symbiotic relationship.

South African Chapter of the United Nations International Year of Cooperatives Coordination Committee chairperson Wellings Maseko also bemoaned the high mortality rate of cooperatives in South Africa. He urged all spheres of government to initiate programmes that were aimed at assisting cooperatives to survive.

“The committee has come with numerous proposals that must be implemented to reduce the mortality rate of cooperatives from 80% to 20%. These include providing them with skills development and training, designating more products and services that the government and private sector can procure only from them and working closely with international institutions such as the International Cooperatives Alliance and International Labour Organisation,” said Maseko.

International Labour Organisation director Vic van Vuuren stated that cooperatives were currently providing employment to more than 100-million people worldwide.