A new cooperative law in Madagascar is generating awareness of the co-op business model and improving the conducive environment needed for the country’s growing cooperative movement to thrive. The law, passed in late 2023, is the outcome of a partnership between NCBA CLUSA and Madagascar’s Ministry of Industrialization and Trade, aimed at enhancing cooperatives’ legal and regulatory framework.
This law, developed over seven years, is part of NCBA CLUSA’s broader efforts to ensure that co-ops can operate within an environment that supports their growth and does not discriminate against them compared to other business models. It was developed under NCBA CLUSA’s Creating an Environment for Cooperative Expansion project, funded by the U.S. Agency for International Development (USAID) ‘s Cooperative Development Program (CDP).
The new law in Madagascar recognizes cooperative businesses as autonomous enterprises, underscoring their potential to significantly impact the country’s economy. Since its passage, co-op advocates in Madagascar have noticed a change in how officials at both the central level and regional branches of the ministry view cooperatives. The ministry is also actively promoting the cooperative business model to young people in the public high school system who are curious about cooperatives and interested in learning more.
Irène Andriamaneho, Director of Entrepreneurship Promotion at the Ministry of Industrialization and Trade in the country, stated, “By instilling an entrepreneurial spirit among high school students in the capital and its outskirts, we are also advocating for the cooperative model as a viable option for their future entrepreneurial endeavors. It’s intriguing to note that these youth are surprised to discover that cooperatives can be tailored to suit various entrepreneurial ventures, beyond the public transportation sector with which they are familiar.”
