East African Cooperation member states have pledged to strengthen the cooperative movement in the region by enacting laws that will help the societies to access more funds.

At a recent African Ministerial Conference on cooperatives in Kigali, the EAC joined 23 other African states in underscoring the role played by cooperatives in national and socio-economic development.

Trade ministers at the meeting noted that cooperative societies are registering growth and have the potential to drive development in the region, adding that there was a need to establish a strong financial system both at the country and regional level to promote the cooperative movement.

According to Francois Kanimba, the Rwandan Minister for Trade, who is also the chairman of the African Ministerial Conference on cooperatives, policy makers should enact laws and regulations that will empower existing cooperative societies.

“We need more number Saccos (savings and credit cooperatives), cooperative banks and insurance companies on board if we are to roll out this vision,” said Mr Kanimba.

Cornerstone of policies

He said that in Africa there is a need to develop professionals who would spur the growth of cooperative societies.

“Our governments should develop policies to facilitate these processes; we need to set benchmarks and clear verifiable indicators to fast-track a viable and sustainable access to finance,” he said.

The ministers resolved that cooperative values and principles should be the cornerstone of all cooperative policies and legislations.
Keletso Rakhudu, Botswana’s Trade assistant minister, said empowering cooperative financially will increase their chances of competition and recognition in the competitive financial sector.

“We recommended wide consultations at country level to be held with different stakeholders within the cooperative movement, and make sure members of these cooperative movements are helped,” Mr Rakhudu said.

He added that countries should focus on complete formulation of policies and review of their laws before the next conference in 2014 in Bamako, Mali.

The ministers urged governments to set up friendly, tax regimes that recognises important roles being played by cooperative movements, to ensure their growth.

Yaranga Coulibaly, Mali’s Minister for Agriculture, called for involvement of youth in the cooperative movement, saying: “There has been continuous under-representation of youth within the cooperative movement in some countries despite their demographic strength in the region.

“We, therefore, proposed that policies be enacted that involve youth in the running of cooperatives.”

Damien Mugabo, director-general of Rwanda Cooperative Agency, said cooperatives in Rwanda are viewed as a potential vehicle through which their members can create employment and expand access to income-generating activities.

“We regard them as business potential enablers and in Rwanda they have provided platforms for entrepreneurial and managerial capacities through education and training; and increased savings and investment culture within the country,” Mugabo said.

Reports state that last year Rwandan cooperatives share capitals has grown to $12,6million (Rwf12billion) and are estimated to be having 2 million members hence positioning Rwanda to create a middle-class economy.

He added that in some countries there are special youth programs and funds designed to assist youth cooperatives. In Mali, for example, these organised cooperatives are linked into different programs and supported to access opportunities provided by these programs and funds.

In Rwanda, according to Damien Mugabo, the director general of Rwanda Cooperative Agency (RCA), Cooperatives are viewed as a potential vehicle through which the Cooperatives members could create employment and expand access to income-generating activities.