17.3 C
Nairobi
Wednesday, December 18, 2024
17.3 C
Nairobi
Wednesday, December 18, 2024

Cooperatives Push for Better Policy and Market Access

Worker cooperatives across Africa took centre stage at the 2nd Cooperative Movement Stakeholders’ Annual Conference and the 2024 Platform Cooperativism Consortium Conference.

The cooperatives, which differ from traditional SACCOs by emphasizing worker control and participation, often serve as a crucial economic outlet for informal sector workers. Yet, despite their potential, these cooperatives face many challenges that prevent their full development.

At the conference, representatives from various African nations shared their experiences, highlighting the achievements and obstacles faced by worker cooperatives.

 

Tanzanian Cooperative Leader Calls for Autonomy

Tina Mfanga, a leader in the UWAMAMA Women Cooperative in Tanzania, described the organization’s journey since its 2020 founding. UWAMAMA, which translates to “Women Workers’ Cooperative of Manzese,” was created to combat the exploitation of local labour by financial institutions.

 Mfanga shared that the cooperative produces cleaning products and engages in political education, empowering members to understand the regulatory barriers hindering cooperatives. However, she pointed out that bureaucratic processes in Tanzania heavily restrict cooperative registration, leaving cooperatives under government control.

 “Registration officers have more power over our cooperatives than the members do,” she noted, adding that there is an urgent need for policy changes to foster cooperative independence and growth.

Zimbabwe’s Cooperative Resilience Model

In Zimbabwe, cooperatives were initially formed after the country gained independence, with many members being former freedom fighters.

Andrew Nyagi, a representative of one worker cooperative, recounted the struggles of his cooperative in securing land for poultry farming and marketing their produce. Nyagi believes cooperative institutions should be run by people with direct experience in cooperatives, which would better equip them to understand and address the challenges these groups face.

His cooperative’s resilience has enabled it to emerge as a vital hub for planning and development in Zimbabwe.

Kenyan Farmers’ Cooperative Breaks into Honey Value Addition

Esther Mutunga of the Kamaki Farmers Cooperative in Kenya highlighted how the cooperative’s entry into honey processing has transformed members’ livelihoods.

Previously, cartels would buy honey at unfairly low prices, leaving farmers with minimal returns. The cooperative, located in Kitui County, now supports collective honey production and value addition. However, they face barriers to market entry due to complex certification processes. “We need easier access to certification to reach both local and international markets,” Mutunga stressed, advocating for a supportive regulatory environment that allows cooperatives to compete effectively.

Developing the Cooperative Sector in Malawi

In Malawi, cooperative researcher Ulenu Maseku emphasized that most of the nation’s cooperatives are agriculture-based and often operate in rural regions. Maseku’s institution is working with international partners to improve digitalization and youth engagement within cooperatives. However, he added that the cooperative movement in Malawi still has much to develop compared to other countries. Maseku pointed out that education on cooperative values and practices is crucial for helping young members thrive in the sector.

Funding and Market Access: Kenyan Waste Recyclers Cooperative

Rodgers Rombe from Kenya’s Kigro Waste Recyclers Cooperative highlighted financing challenges for worker cooperatives. His cooperative, based in Nairobi, has been instrumental in waste recycling but faces financial hurdles. Rombe called for SACCOs to support worker cooperatives with low-interest loans, arguing that this would honour the cooperative movement’s principle of mutual support.

The conference underscored the shared vision and challenges faced by African worker cooperatives, with speakers calling for policy reform, regulatory streamlining, and better access to financing. By addressing these issues, the cooperative sector aims to empower its members and expand opportunities for informal workers across the continent.

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