MSUNDUZI MUNICIPALITY __________________________________________ CO-OPERATIVE DEVELOPMENT STRATEGY Final Development Strategy Issue Date: September 2017 Revision No.: 02 Project No.: 14511 Date: September 2017 Document Title: Final Co-operative Development Strategy Author: Leon Katambwe Revision Number: 02 Checked by: Kavi Soni Approved by: Kavi Soni Signature: For: SiVEST SA (PTY) LTD MSUNDUZI MUNICIPALITY CO-OPERATIVE DEVELOPMENT STRATEGY TABLE OF CONTENTS 2. INTRODUCTION ........................................................................................................................... 1 2.1. BACKGROUND ....................................................................................................................... 1 2.2. OVERALL OBJECTIVE OF THE STUDY .................................................................................................. 2 2.3. SCOPE OF THE STUDY .................................................................................................................... 2 2.4. URBAN-ECON’S APPROACH: THE THEORY OF CHANGE OR OUTCOMES APPROACH .................. 3 2.5. METHODOLOGY ........................................................................................................................... 5 2.6. ACTION STEPS ............................................................................................................................. 6 2.7. REPORT OUTLINE .......................................................................................................................... 8 3. CO-OPERATIVE MACRO-ECONOMIC OUTLOOK ..................................................................... 9 3.1. BACKGROUND ............................................................................................................................ 9 3.2. DEFINITION OF A CO-OPERATIVE................................................................................................... 9 3.3. VALUES OF A CO-OPERATIVE ..................................................................................................... 10 3.4. PRINCIPLES OF A CO-OPERATIVE ................................................................................................ 11 3.5. DIFFERENCE BETWEEN CO-OPERATIVES AND OTHER BUSINESSES ....................................................... 13 3.6. FORMS OF CO-OPERATIVES ........................................................................................................ 14 3.7. TYPES OF CO-OPERATIVES ........................................................................................................... 14 3.8. CO-OPERATIVES’ CONSTRAINTS ......................................................................................... 16 3.9. BEST CASE EXAMPLES OF COOPERATIVES ................................................................................ 18 3.9.1 Canada .............................................................................................................................. 18 3.9.2 Dairy Cooperatives in Bangladesh ................................................................................. 19 3.9.3 Kenya .................................................................................................................................. 22 3.9.4 Maletswai Waste & Recycling Co-operative ................................................................ 22 3.9.5 Nqabayensimbi Poultry Co-op ........................................................................................ 23 3.10. SYNOPSIS .................................................................................................................................. 24 4. CO-OPERATIVES POLICY FRAMEWORK ................................................................................... 26 4.1. INTERNATIONAL CO-OPERATIVE ALLIANCE BLUEPRINT FOR A CO-OPERATIVE DECADE JANUARY 2013 26 4.2. NATIONAL COOPERATIVE DEVELOPMENT STRATEGY 2012-2022 ................................................... 27 4.3. NEW GROWTH PATH (NGP) ................................................................................................. 28 4.4. NATIONAL DEVELOPMENT PLAN (NDP) ............................................................................. 29 4.5. NATIONAL INDUSTRIAL POLICY FRAMEWORK ................................................................................. 30 4.6. INDUSTRIAL POLICY ACTION PLAN (IPAP 2)................................................................................. 30 4.7. REGIONAL INDUSTRIAL DEVELOPMENT STRATEGY (RIDS) ............................................................... 31 4.8. INTEGRATED STRATEGY ON THE PROMOTION OF ENTREPRENEURSHIP AND SMALL ENTERPRISES ............ 31 4.9. BROAD-BASED BLACK ECONOMIC EMPOWERMENT STRATEGY (B-BBEE) ....................................... 31 4.10. NATIONAL YOUTH ENTERPRISE STRATEGY (NYES) .......................................................................... 32 4.11. STRATEGIC FRAMEWORK ON GENDER AND WOMEN’S ECONOMIC EMPOWERMENT ........................ 32 4.12. THE COOPERATIVE AMENDMENT ACT 2013 .................................................................................. 32 4.13. THE CO-OPERATIVE POLICY OF 2004 ......................................................................................... 34 4.14. THE NATIONAL CO-OPERATIVE DEVELOPMENT STRATEGY (2004-2014) ......................................... 35 4.15. CO-OPERATIVE BANKS ACT, NO 40 OF 2007 .............................................................................. 35 4.16. NATIONAL FRAMEWORK FOR LOCAL ECONOMIC DEVELOPMENT (2006) ...................................... 36 4.17. INTEGRATED AND SUSTAINABLE RURAL DEVELOPMENT (ISRD) STRATEGY (2000) ............................. 36 4.18. KZN CO-OPERATIVE DEVELOPMENT STRATEGY (2010) .................................................................. 37 4.19. SYNOPSIS .................................................................................................................................. 37 5. CO-OPERATIVE SUPPORT SERVICE PROVIDERS ....................................................................... 38 5.1. NATIONAL AND PROVINCIAL SERVICE PROVIDERS .......................................................................... 38 5.2. MSUNDUZI CO-OPERATIVE SERVICE PROVIDERS ............................................................................ 38 6. MSUNDUZI MUNICIPALITY - SNAPSHOT ................................................................................... 40 6.1. DEMOGRAPHIC OVERVIEW ........................................................................................................ 40 6.2. ECONOMIC OVERVIEW .............................................................................................................. 42 7. MSUNDUZI CO-OPS TRENDS ..................................................................................................... 47 7.1. AGE OF BUSINESS ....................................................................................................................... 47 7.2. BUSINESS ACTIVITIES/SECTOR ....................................................................................................... 47 7.3. LEVEL OF EDUCATION ................................................................................................................. 48 7.4. CO-OPERATIVES’ SOURCE OF WORKS (MARKETS) ................................................................... 49 7.5. UNDERSTANDING OF TENDER PROCESS ......................................................................................... 50 7.6. CO-OPERATIVE NEEDS FOR TRAINING ON HOW THE GOVERNMENT TENDERS WORK ............................ 51 7.7. GROWTH STATUS OF THE CO-OPERATIVES ..................................................................................... 51 7.8. MAJOR BUSINESS OBSTACLES ....................................................................................................... 52 7.9. KEY NEEDS OF CO-OPERATIVES .............................................................................................. 55 8. SWOT ANALYSIS ........................................................................................................................ 56 9. STRATEGIC FRAMEWORK .......................................................................................................... 58 9.1. VISION ...................................................................................................................................... 58 9.2. POLICY PRINCIPLES .............................................................................................................. 58 9.3. STRATEGIES ............................................................................................................................. 60 9.3.1 A creation of a conducive policy and legal environment .......................................... 60 9.3.2 Building of a supportive institutional system ................................................................... 60 9.3.3 Provision of capacity building and skills development for co-operatives ................. 61 9.3.4 Provision of support services to co-operatives and addressing poverty ................... 61 10. IMPLEMENTATION FRAMEWORK .............................................................................................. 63 10.1. IMPLEMENTATION PLAN ............................................................................................................... 64 10.2. FINANCIAL PLAN ..................................................................................................................