Co-operatives driving growth in KZN

The promotion of co-operatives as alternative economic drivers to combating joblessness and poverty in KwaZulu-Natal has triggered positive-spin-offs that include the emergence of alliances between the provincial Department of Economic Development and other role players in the province’s economy. These include academic institutions that are contributing towards skills development for co-operatives practitioners with the aim of ensuring that these budding entrepreneurs are capable of running sustainable enterprises.

Co-operating partners
Amongst the partners that have joined the campaign to fast-track growth through co-operatives, is the University of Zululand on the north coast which has created a unit that trains government officials who are tasked with the responsibility of developing co-operatives in the province. These include employees of Department of Economic Development and its strategic partners such as Department of Education, Ithala Development Finance Corporation and other government agencies.  Training is also offered to emerging entrepreneurs on how to pursue profitable and sustainable co-operatives.

International assistance
This partnership has seen the recruitment of business experts in co-operatives sector from Kenya who arrived in the country to strengthen the capacity within the University by conducting lectures on officials and co-operatives – using their wealth of experience in this field of the economy. The east African country has an illustrious record of mobilising its citizens’ participation in the economy through co-operatives. When the Department started encouraging communities to consider co-operatives as viable vehicles to actively get involved in the economy, Kenya and India were used as case-studies – both with similar economic patterns with South Africa.

Now such initiative has resulted in these fast growing developing economies contributing expertise to ensure the entrenchment of entrepreneurial skills amongst the locals. Manager for co-operatives in the department Ms Simangele Manzi was excited about the arrival of two Kenyan co-operatives lectures and said, `Our people have a passion for business and to do things for themselves, but we have to empower them with appropriate skills to ensure the sustainability of their enterprises.'

Co-operative curriculum
The University of Zululand has developed a curriculum suitable to moulding potential entrepreneurs interested in co-operatives as alternatives to traditional small, medium and micro enterprises (SMMEs). The training involves business and financial management, marketing, people-management skills and project co-ordination. In an effort to stimulate public participation, the department has made financial support available to diverse sectoral co-operatives through its public entity, Ithala Development Finance Corporation. These include ventures in agriculture, services, manufacturing, craft and information technology – and hence around R760-million has since been invested in the development of co-operatives and other small scale enterprises in the province. 

Having satisfied the Department of Home Affairs that the two Kenyan nationals are bringing scarce skills that have to be reciprocated through systematic transfer, the department and the University of Zululand believe their practical experience will further strengthen academic understanding of co-operatives as an economic model to lift communities out of poverty. Like tourism, co-operatives teaching is still new terrain in this country, but the department is committed to bolstering it since co-operatives have proved to be an attractive option for finances as it encourages people with diverse socio-economic backgrounds to pool their skills – strengthening co-operatives’ chances of surviving market turbulences. Messrs Kiriyanki and Gilbert Okoye signed a two-year contractual agreement which will include the mentoring of some locals that would eventually become competent and academically sound co-operatives tutors – indicative of a systematic skills transfer. This was confirmed by University of Zululand’s Dr M Moloele, who said this would ensure, `Achievement of goals and objectives of both DED and UNIZULU.'

Setting the standard
Against the backdrop of the current economic woe, one of the co-operatives owned and managed by young people (Khanyanjalo Co-operative in Berea, Durban), has demonstrated an exceptional resilience. The co-operative assembles new computers, repairs and refurbish old computers. They also run an internet café, and do training on basic computer skills, as well as doing repairs and refurbishing computers. Its clientele includes schools, local municipalities, individuals and businesses and is currently clocking substantial gains, especially as most small-scale enterprises believe it makes economic sense to fix faulty computers, rather than purchase new equipment.

MEC mission
The co-operatives campaign has been one of the key government economic interventions initiated by KwaZulu-Natal MEC for Finance and Economic Development, Dr Zweli Mkhize with a primary objective of drawing more citizens to the mainstream economy. His vision has paid positive dividends with more communities now turning to co-operatives to claim their stake in the province’s economy instead of waiting on the sidelines for government’s social grants. Young and old are seizing the opportunities, thanks to the incorporation of business and technical skills training offered by government funded FETs, and now the University of Zululand, to help capacitate the participants to be able to cope with a competitive business environment.

KwaZulu-Natal Department of Economic Development

Contact: Boyce Mntambo, Manager for Information & Communication Technology
Tel.: +27 33 264 2500
Fax: +27 86 679 6404
Email: mntambob@kznded.gov.za

Website: www.kznded.gov.za