Cooperatives faltering Shortcomings in policy dull performance While the cooperative model is fitting for especially Namibian conditions, policy shortcomings cause lacklustre performance. Several shortcomings have been identified during the review of Namibia''s current cooperative policy, which if addressed will unlock the potential within the cooperative business in the country. This was highlighted during a briefing on the 2016 Revised Cooperative Policy by the Ministry of Agriculture, Water and Forestry.
Agricultural minister, John Mutorwa said that the policy essentially updates and revises the 1992 Namibia National Cooperative Policy.
According to him the revised policy states that “in Namibia, there have been a few successful cooperatives, but the majority of them have either failed to graduate from provisional registration, to full registration, or did not attain economic vibrancy, after full registration.
There are currently around 146 cooperatives that are registered with the Registrar of Cooperatives under the Ministry of Agriculture Water and Forestry, with a total membership of about 11 183 people.
An agricultural cooperative, also known as a farmers'' co-op, is a cooperative where farmers pool their resources in certain areas of activity.
According to the chairperson of the Cooperatives'' Advisory Board, Ronnie Dempers, cooperatives provide the opportunity for Namibia to broaden the economic participation as it provides the platform for people to participate in the economic development process.
He said that the cooperative business model offers unique opportunities to the socioeconomic challenges that Namibia is faced with.
He however pointed out that there have been problems with cooperatives not reaching full registrations and that this is mainly because of the lack of compliance towards the cooperative act.
According to Dempers, one of the shortcomings observed in the current policy is that although it provides the needed environment for cooperatives to be formed, it has fallen short in providing the necessary language, clarity and direction that will enable the cooperative movement to excel in Namibia.
He said that for example the current policy states that the government will treat cooperatives no less than on equal terms as compared to other forms of enterprises.
“I believe that cooperatives cannot be equated on equal terms together with other enterprises and this is a disincentive in the current policy. Yes, cooperatives are not government institutions and are member-owned and controlled businesses. But government has the responsibility of creating the needed policy environment and other interventions such as for example through its procurement arrangement that favours cooperatives given the social economic role cooperatives fulfil.”
Dempers said the other issue that should be looked into by government is tax incentives.
According to him the review process has started in 2012 already and policy proposals have been made which if implemented can go a long way in unlocking the potential within the cooperative business.
“Cooperatives can serve as vehicles through which wealth redistribution can be achieved without promoting a culture of dependency,” said Dempers.
ELLANIE SMIT