Unfavourable Government Policies and Laws, political interference, stiff competition from other players in the financial sector, limited adoption of technology and poor visibility to available partners and donors, are some of the challenges facing the growth and development of Co-operative Societies in Africa.
This is according to a report by the International Cooperatives Alliance(ICA) Africa released in October this year.
Other weaknesses cited include limited financial resources, low co-operative education among members, poor member retention, lack of aggression in the competitive financial market, weak governance structures, ageing members and the low participation of women and the youth in the co-operative movement.
The AFRICA CO-OPERATIVE DEVELOPMENT STRATEGY 2023- 2033, released by ICA Africa titled “ONE CO-OPERATIVE – ONE AFRICA”, also cites several strengths of the co-operative movement in Africa including its strong network, availability of partners, Qualified and experienced staff, Large area of operation with very lean secretariat, Access to shared resources, members support and the movement’s extensive geographical coverage.
This Africa Co-operative Development Strategy 2023-2033 presents the path forward for co-operative enterprise development over the next ten years. It is the result of a thorough review of relevant documents, consultations, and refinement process that considers the changing socio-economic context as well as the lessons learnt during the implementation of the 2017-2020 Strategy and previous other strategies
This Strategy paper warns that if co-operatives in Africa do not come up with strategies to increase and retain active membership, low participation of overtime may threaten the competitiveness, growth, development and sustainability of the co-operative movement in Africa.
If the issue of reputation and visibility is not addressed, membership will continue to dwindle and the growth of the cooperative movement at local, national and regional levels will be adversely affected. In addition, visibility may also affect the image and financial viability of the co-operative movement in Africa.
The Strategy document warns that failure to address this will translate into missed opportunities for increased funding, sharing resources and sustaining the image of the co-operative movement in Africa.
The 2023-2033 Africa Co-operative Development Strategy sets out the vision and mission for the sector, with recommended objectives and strategies for both the movement and the African States.
The ICA-Africa is expected to implement this Strategy within the three strategic areas namely promotion of cooperative identity, cooperation among co-operatives, and institutional capacity for effective service delivery.
“The major focus is to promote and strengthen the cooperative movement in the region and provide demand-driven services and products,” said Chief Ayeola Tajudeen Oriyomi, ICA Africa Chairperson.
ICA Africa has identified four elements critical to future success of the African cooperative enterprise.
These are shared resources and services, visibility, data, as well as research and innovation.
“With these, we can make more visible co-operatives and raise awareness of the African cooperative movement in general, and cooperative enterprises in particular,” said Oriyomi.
As matters stand, the African co-operative enterprise best practices are less visible to the world. ICA Africa’s strategy thus seeks to have a comprehensive, globally comparable and consistent data set that adequately reflects the socio-economic activities of the sector and respective contribution to the economy of each African country.
During the 2023-53 Strategy period, ICA Africa mentions that the co-operative movement in Africa shall gather, disseminate and portray information on their operations.
Co-operatives will be required to mainstream research in their socio-economic activities; and promote the integration of cooperative agenda. This will nurture and develop an ecosystem that rebrands the co-operative movement and brings together the diverse favourable cultural practices and operations of co-operatives.
“By 2033, ICA Africa intends to see a dynamic and inclusive cooperative movement based on shared resources with high productivity and competitive advantage. The ICA-Africa will join forces with International Co-operative Alliances, global and regional and other initiatives, for co-operative development as part of the implementation of the Strategy,” said Dr. Chiyoge B. Sifa, Regional Director- ICA Africa.
The ICA is the oldest non-government organization uniting, representing and serving cooperatives worldwide. The ICA serves through its regional offices which are positioned in Africa, Americas, Asia Pacific and Europe.
The ICA-Africa is one of the four regional offices.
It was established in 1968 and formally headquartered in Nairobi, Kenya since 2004. The ICA-Africa, serves, unites and represents 44 member organizations which are spread out in 24 countries and supranational member representing multiple countries in the Africa region.
In its efforts to enhance the operational effectiveness, the ICA-Africa has recently opened a North- Africa sub-regional office in Cairo, Egypt.
Generally, ICA-Africa promotes and strengthens autonomous and viable co-operatives in the continent through capacity building and policy advocacy for the socio-economic benefit of its members.
