The establishment of cooperatives prevent social exclusion and directly and indirectly economically empower one-billion people worldwide, Small Business Development Minister Lindiwe Zulu said.

The top 300 cooperative enterprises, operating in some of the most competitive industries, such as banking, insurance, agriculture, retail, health and utilities, collectively constituted the ninth-largest economy in the world, valued at $1.6-trillion.

Cooperatives have emerged as the catalysts for economic growth, sustainable development and poverty alleviation, particularly for disadvantaged, vulnerable and marginalised groups, pushing back the frontiers of poverty, unemployment and inequality, the Minister stated.

Zulu’s statement comes as the Ministry moved to intensify public awareness around the “crucial role” that cooperatives play in the development of South Africa’s communities.

“Cooperatives hold some of the answers to the pressing socioeconomic challenges … that stubbornly stare all of us in the face,” she said, adding that they were at the centre of the much-needed village and township economic revival.

However, despite the progress made in catalysing the development of cooperatives, the lack of adequate economic and social impact statistics on cooperatives covering all sectors, as well as the “poor appreciation” of the cooperatives business model by the public, remained a challenge.

Further, financial and nonfinancial support given to cooperatives still remained “scattered”.

“We are determined to address these challenges. As part of strengthening cooperatives, the Ministry of Small Business Development will focus on creating an enabling environment for the development and growth of cooperatives in South Africa,” she averred.

The South African National Apex Cooperative (Sanaco) secretary-general Thulani Mabuza emphasised that a partnership between cooperatives and government was important and key in sustaining the cooperatives and enhancing their contribution to job creation.

Sanaco aimed to “push” the successful implementation by government of legislation meant to support small, medium-sized and microenterprises and cooperatives.

“The micro insurance legislation that has been in the pipeline for some time is on top of our list,” noted Mabuza.

He also urged Limpopo-based cooperative enterprises to take “full advantage” of the Limpopo provincial government’s decision, earlier this month, to procure 10% of its goods and services from cooperatives.