adminBusiness Editor
ZIMBABWE should urgently review its co-operative development policy and align it with modern trends to unlock economic potential in the informal sector, an official has said.
In her address during a consultative workshop on the Co-operative Policy (2005) review in Bulawayo yesterday, the Permanent Secretary in the Ministry of Small to Medium Enterprises and Co-operative Development, Evelyn Ndlovu, said the current legislation had many loopholes that frustrate the growth of small businesses.
“The Co-operative Policy (2005) is chronologically outdated or has become archaic. It doesn’t have a vision and mission statements. It’s also not RBM complaint and needs to be aligned to the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset),” said Ndlovu.
She said the review of the policy should tally with ideals of Sustainable Development Goals (SDGs) and current global economic trends.
Ndlovu said the 2005 policy no longer provides for the institutional framework to support the policy hence the implementation and co-ordination challenges encountered by the co-operative movement today.
“The role of the government and the co-operative movement are in no uncertain terms categorically outlined hence there’s role conflict between the parties and some of the roles are not being pursued,” she explained.
Ndlovu said it was imperative that policies be revised after every five year to match the changing economic trends, a address institutional framework and curb role conflict, implementation and co-ordination challenges.
Under Zim-Asset, the government recognises the important role of co-operatives in sustainable employment creation, poverty eradication and economic recovery.
It is hoped that reviewing the cooperative development policy would facilitate attainment of the above and inherently contribute to improved livelihoods of our people.
Further, the Ministry of SMEs in partnership with PROBE Market Research and ZIMBISA are carrying out further field work in all the country’s 10 provinces to gather necessary data from participants on matters that need to be included in the revised policy.
The review process also dovetails the principles guiding government policy on co-operative development in light of the International Labour Organisation (ILO) Recommendation 193, which provides a framework for law and policies on cooperatives as well as campaign for co-operatives.
Due to the change in overall operational environment over the years, cooperatives have to contend with a myriad of challenges.
These include economic liberalization as a result of the economic structural adjustment programmes, globalisation which created new and different pressures, problems and opportunities for co-operatives, rising unemployment and poverty, multiple currency regime, people’s attitudes towards cooperatives, technology advancement and need for diversification of operations for sustainability of cooperatives.
As a result the co-operative movement has failed to adapt to these challenges due to among other reasons, rigid policies and legislative frameworks.
Online Reporter