COOPERATIVES WITHIN COMPREHENSIVE
RURAL DEVELOPMENT FRAMEWORK
Presentation to the Portfolio Committee on Rural
Development and Land Reform
23 April 2013
COOPERATIVES WITHIN COMPREHENSIVE
RURAL DEVELOPMENT FRAMEWORK
• STRATEGIC OBJECTIVE: Integrated service
delivery facilitated through the coordination of
government and development stakeholders by
2014.
• There are 658 cooperatives that were registered
by the Chief Directorate Institution Building and
Mentoring.
Audit of Cooperatives
A PROCESS TO AUDIT COOPERATIVES
INITIATED:
• to form part of the enterprise development
programme and
• towards attending to in the Chief Directorates
for Primary and Secondary and Tertiary
Cooperatives. (as per plans)
AUDIT PLAN
Objectives
Activities
Estimated Regularity
Initiation activities
Co-operative desktop analysis (658 cooperatives)

Classification in terms of production areas and geographical
distribution

Membership verification

Verification of registration

Verify management systems and capacities

Determination of functionality
Apr-Jun 2013
Provincial site visits, interaction and due diligence exercise with the
existing co-operatives that can benefit most for final recommendation
to the steering.
April-June 2013
Identify and list probable construction cooperatives that will flow
from the NARYSEC Programme
April-June 2013
Business Plans for the functional cooperatives selected in
collaboration with the client
April – June 2013
Business Plan development for small
scale enterprises
Rural Cooperatives within the
23 Districts and CRDP Sites
RURAL COOPERATIVES
Vision
Towards a growing, sustainable and integrated cooperative sector,
supported by all stakeholders, contributing to economic growth,
poverty reduction and employment creation, as well as bringing
about
economic
transformation
and
Cooperatives Development Policy (2004).
equitable
society.
PURPOSE & LEGISLATIVE FRAMEWORK
Purpose: To facilitate rural cooperatives as vehicles that can
contribute to job creation, poverty reduction through
income generation as well as contribute to economic
growth
Legislative Framework: The legislative framework sets out
the parameters for the registration and management of
cooperatives in South Africa. The following instruments
form the basis for all the work relating to cooperatives and
the Cooperative Development Strategy:
Cooperatives Development Policy of 2004
Cooperatives Development Act, No. 14 of 2005
Cooperatives Regulations 2007
Cooperatives Bank Act, No. 40 of 2007
Status of Cooperatives in SA
Dates
Registered Cooperatives as per CIPRO (CIPC) Data
2007 - 2009
Total of 22030 registered cooperatives in the CIPRO data. More
than 50% of these coops are in rural areas
2007 – 2009:Current Data
The Dept of Trade and Industry baseline confirmed only
approximately 2644 to be economically operating
During 2010 only 132 cooperatives complied with the
requirements of submitting their financial statements to CIPRO
Source
DTI Base Line Study
Provincial Breakdown Status of Cooperatives
No of
surviving
Coops
No of dead
Coops
Survival
Rate
Mortality Rate
Province
Data from
CIPRO
Register
KZN
8697
1044
7653
12%
88%
EC
4124
287
3957
7%
93%
WC
1003
69
934
7%
93%
NC
798
20
934
2.5%%
97.5%
Limpopo
1779
405
1474
22%
78%
Mpumalanga
1396
187
1309
12.5%
87.5%
Gauteng
2265
394
1971
17%
83%
FS
850
71
829
8%
92%
NW
1208
167
1090
13%
87%
2644
19386
12%
88%
National Total 22030
Overview of the Tasks in Rural Cooperative Development
Inception
phase
Organization
Education and
training
Operational
Economic
Enterprise
• Scoping
• Auditing of compliance with the Cooperatives Act
• Development of database
• Awareness raising
• Needs Assessment
• Households and Commodity /Sector Cooperatives
• Training ( Cooperative governance, marketing , ICT, business skills)
• Financial
• Infrastructure needs
• Market access
• Mentoring
• Monitoring and evaluation
•Job creation
•Contribute to economic growth
•Food security
Key Activities : Primary Cooperatives
• Receive referrals from knowledge unit
• Identifies, establishes and registers
• Facilitation of social cooperatives (burial societies, consumer and
savings coops )
• Provide start-up support
• Facilitate internal/coop governance, compliance, constitution
• Facilitate Compliance with Cooperative legislation and policy and
liaison with relevant departments national and provincial
• Facilitate internal planning (feasibility studies and business plans)
• Facilitate access to Coop Incentive Scheme ( CIS) at DTI
• Facilitate access to sector-specific training and other skills
• Support agricultural and non-agricultural cooperatives(inputs,
production management, harvesting and storage
• Ongoing support to primary cooperatives
Key Activities: Secondary and Tertiary
Cooperatives
• Mobilise and facilitate the establishment of secondary cooperatives
• Provide support to secondary cooperatives(registration,
constitution, build administrative capacity ( compliance), facilitate
training and mentoring
• Facilitate the dissemination of market information and market
linkages
• Facilitate training to capacitate secondary cooperatives to engage in
bargaining at bulk buying practice
• Facilitate training in marketing and market development
• Mobilise and facilitate the establishment of tertiary cooperatives
• Build capacity to tertiary cooperatives to support the secondary and
primary cooperatives
Guide to Rural and Economic
Development
1. An enabling
Environment that
provides for an attractive
10. Ongoing learning
climate
2. Adequate mechanism,
from
processes and structures
success and failures by all
that address local needs
stakeholders
9. Active participation and
ownership of development
processes by well-linked
stakeholders
8. Local organisation,
groups
and associations
(representing
Fostering
Rural
Economic and
Enterprise
Development
the poor) as building.
blocks
7. Adaptive management
capacity and
entrepreneurial
competence within
business
and enterprises
6. Access to effective
and efficient support
services and resources
3. Active private
partnerships and linkages
4. Functioning and
effective infrastructure
(hard & soft)
5. Access to integrated
and local markets
Value Chain Approach
Primary coop 1
processing/industries
Primary coop 2
Secondary
/tertiary coop
Local and
external
markets
Coordination and Partnerships
RID(opportunities for the youth and infrastructure
requirements of cooperatives)
INTERNAL
EXTERNAL
NARYSEC(opportunities for participation in economic
activities)
LAND REFORM ( Coop for land reform projects)
Government departments e.g DTI, DAFF, Provincial & Local
government
Public entities and agencies e.g Seda, DBSA, ARC
Tertiary institutions, NGOs and Private Sector
NARYSEC
(NATIONAL RURAL YOUTH SERVICE CORPS)
•Current enrolment?
•How many youth have been trained, where and on what?
•Are there youth that are trained but currently not involved in any
activity while receiving a stipend?
•Are there any youth that have been recruited, receiving stipend t
sitting at home and doing nothing and why?
•An age analyses of the current intake i.e. how many are in the
programme from its inception, when will they exit, same
information for each of the groups.
•How many per province and provincial distribution?
•What projects are those that have been trained currently involved
in and where?
• What is the Departments long term plan with the programme?
• What are the challenges and what will be done to overcome the
16
BACKGROUND TO NARYSEC
• Job creation and skills development of youth are national
priorities.
• Unemployment of youth in rural areas even more serious.
• The Comprehensive Rural Development Programme (CRDP)
was developed in 2009.
• In response to the plight of youth in rural areas the National
Rural Youth Service Corps (NARYSEC) was established on 1
September 2010.
• Emphasis of NARYSEC is the development of the skills of rural
youth.
17
NATIONAL RURAL YOUTH
SERVICE CORPS (NARYSEC)
Know Your People!
Know Your Village!
Live Up To Your Responsibility!
THE OBJECTIVES OF THE NARYSEC
PROGRAMME
• Nation building and community service through the initiation
of district life skills hubs that serve as rural youth
empowerment centres.
• Enabling rural youth to play a strategic and significant role in
the transformation of rural communities by participating in
the roll out and implementation of the CRDP.
• Creating a major countryside revolution for socio-economic
freedom with special emphasis on rural areas.
19
THE OBJECTIVES OF THE NARYSEC
PROGRAMME
• Enhancing the spirit of ubuntu through whole-person selfdevelopment, economic participation, community values and
personal empowerment among young people.
• Promoting a result oriented national rural youth service and
thereby build patriotism, social cohesion and stable rural
communities with viable institutions, sustainable economies
and access to social amenities able to attract and retain skilled
and knowledgeable people who will contribute to growth and
development of the rural communities.
• Investing in the future by investing in the youth today.
20
CLARIFICATION OF NARYSEC ROLES
• DRDLR play role of Initiator and Coordinator.
• Project is nationally led by the Minister of Rural Development
and Land Reform and led provincially by MEC with Rural
Development function.
• Included in the delivery agreement with President.
• Implementation at municipal level by synchronizing
community needs with the objectives of the municipalities.
• Establish provincial project team to manage implementation.
• Ward councilors, representatives council of stakeholders at
CRDP sites and community leaders form part of
implementation structures at municipal level.
21
PRESENT TARGET GROUP AND PERIOD
•
•
•
•
•
Rural ward focused.
Age group 18 to 35 – (working age).
Completed grade 10 (std. 8) or higher (completed school).
Stipend of R1 320 per month.
Gender balance of 50/50 even though distribution in
provinces may be different.
• Four years – can migrate to better employment or business
opportunities earlier.
22
FINANCIAL EXPENDITURE
DESCRIPTION
Persal (stipends)
FET Colleges
Construction Tools
Uniforms
Logistic (venues & facilities,
accommodation, catering and transport)
Practical training (Transport,
accommodation and meals for participants)
Induction for new intake in Limpopo, North
West and Western Cape in January 2013
Project management (DBSA NTSU)
Department of Defence (Character building
training - NYS)
Total
2011/2012
114 300 000
115 600 000
640 684
6 996 102
2012/2013
155 549 418
74 617 343
1 530 440
10 108 725
41 402 931
55 909 374
40 000 000
10 500 000
6 000 000
278 939 717
56 367 444
410 582 744
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GROWTH IN NARYSEC AND EXIT INFO
START DATE
NUMBER OF YOUTH
EXIT DATE
1 September 2010
7 956
31 August 2014
30 April 2012
8 041
29 April 2016
31 May 2012
9 371
30 May 2016
30 June 2012
10 478
29 June 2016
31 August 2012
11 140
30 August 2016
30 September 2012
11 540
29 September 2016
31 March 2013
12 881
30 March 2017
24
CURRENT ENROLMENT:
NARYSEC PARTICIPANTS PER PROVINCE
PROVINCE
FEMALE
MALE
TOTAL
EASTERN CAPE
1 388
1 021
2 400
232
148
380
1 171
673
1 844
931
530
1 461
1 166
793
1 959
MPUMALANGA
572
389
961
NORTH WEST
735
545
1 280
NORTHERN CAPE
582
343
925
WESTERN CAPE
990
681
1 671
7 757
5 124
12 881
FREE-STATE
GAUTENG
KWAZULU-NATAL
LIMPOPO
Grand Total
YOUTH TRAINED WHERE AND ON WHAT
• Agriculture Fort Cox: 69 youth trained on Animal Production:
NQF Level 2.
• 38 FETC nationally: 5057 youth were trained in the various
fields of construction:
–
–
–
–
–
Building & Civil Construction: NQF Level 3.
Plumbing: NQF Level 2.
Welding: NQF Level 2.
Electrical Engineering for construction: NQF Level 2.
Community House Building: NQF Level 2.
26
CONT,
• FETC: Business Administration Services: Level 2 & Level 4.
• South African Wildlife College and Wilderness Foundation
trained 300 youth on Farm Management: NC Level 1.
• StatsSA and Social Dev trained 4000 youth on HouseHold
Profilling.
• SANDF trained 4700 youth in Character Building.
• Bytes Technology trained 300 youth on Computer data
capturing.
27
CONT,
• Chief Directorate Rural Disaster trained 88 youth on various
courses:
– Community based disaster risk management.
– Disaster risks.
– Handling of dangerous goods.
– Basic Computer skills.
– Communication.
– Office Administration
– First Aid course I and II.
These youth are based at various Thusong Centres.
28
NEW SKILLS PROGRAMMES 2013 AND BEYOND
•
•
•
•
•
•
•
•
•
•
•
NC: Animal Production: NQF Level 2
NC: Automotive Repair & Maintenance: NQF Level 2
NC: Building & Civil construction: NQF Level 3
FETC: Plumbing: NQF Level 4
FETC: Welding: NQF Level 4
NC: Business Administration Services: Level 2 & Level 4
Renewable Energy: NQF Level 3
Agri-business: NQF Level 3
Solid Waste Management: NQF Level 3
Waste Water Management: NQF Level 3
Hospitality: NQF Level 3
29
YOUTH TRAINED BUT NOT INVOLVED IN ANY
ACTIVITY WHILE ON STIPENT
• Learnership and other skills programs require that after 30%
training in theory at the College, a learner must undergo
practical work training at a host employer to complete 70%
work practical experience part.
• DRDLR does not have facilities to host learners as per their
area of training.
• Initially this was a huge challenge to persuade relevant host
employers to do the 70% practical training.
• This is a problem even outside the NARYSEC programme.
• To date 80% of the participants who completed construction
training have been placed with host employers.
• Sites for the remaining 20% are still sought.
30
YOUTH RECRUITED, RECEIVING STIPEND BUT
SITTING AT HOME, WHY?
• Although host employers are carefully selected conditions
are not always conducive for youth to get practical
experience. Such youth would be removed to avoid putting
them at risk.
• FETC start programmes at set dates. Youth waiting to enroll
would not necessarily be kept busy.
• Youth are linked to local municipalities to work in community
projects of Municipality as Community Development
Volunteers.
• Not all municipalities utilise youth actively.
31
AGE ANALYSIS OF THE CURRENT INTAKE AND
EXIT INFORMATION?
• Intake into the NARYSEC Programme is of a rolling nature.
• Provinces recruit at dates when different skills programmes
can resume.
• The NARYSEC youth is contracted for four years from the date
he or she is enrolled into the programme.
• The first intake of youth will exit from the programme at the
end of August 2014.
32
CHALLENGES AND STRATEGIES TO MITIGATE
• The challenge remains in linking skilled young people to
relevant job opportunities. Various institutions are in place to
address this. The most significant intervention is the NARYSEC
Technical Support Unit (DBSA). Their purpose is to oversee
activities at colleges and at the various workplaces where
youth are trained. The NTSU has now become fully
operational.
• Municipalities not utilising youth lead to youth not being
engaged. Although several engagements at especially
Ministerial level took place progress is slow. These
engagements continue.
33
NARYSEC PROJECTS
•
•
•
•
•
•
•
•
Ablution facilities Limpopo school.
Pack house Madzivandila.
Houses Malamulele.
Children's ward Addington Hospital.
Renovate nurses residences Addington Hospital.
Low cost housing Paarl.
Paving Beaufort West.
Household profiling.
34
EARLY SUCESSES
35
COLBERT MABASA LIMPOPO
• Colbert Mabasa completed his workplace training at the
Malamulele construction site.
• Colbert did not think that the NARYSEC training would impact
his life and that of the entire community. The local chief
witnessed Colbert's contribution in job creation for some of
his villagers and decided to offer him 5ha piece of land as a
token of appreciation for community service.
• Colbert bought himself a brick making machine and started
manufacturing bricks and selling them in his village. NARYSEC
encouraged him to register his own business. He sells bricks in
and around Malamulele area. He has currently completed
building works for a clergy man in his community.
36
MOEKETSI DEANE NORTH WEST
• Moeketsi Deane, a NARYSEC participant, formed a business
with other participants in North West. They were awarded a
sub-contract to build a Health Centre in Moretele in Bojanala
District.
• 20 other community youth has been employed by the
participants in the project.
• Low cost housing in Randfontein Johannesburg has been
earmark to be built by the same NARYSEC participants.
37
WENDY TSOTETSI GAUTENG
• Wendy Tsotetsi, is a NARYSEC participant who have formed an
agriculture cooperative in piggery, vegetable production and
cropping.
• These youth are based in Kaalfontein where they operate
under Emfuleni Local Municipality.
• They also train members of the community on climate change
and adaptation especially for agricultural purposes.
• They have planted maize for the first time this year and
should harvest in May/June 2013.
38
IMPACT
• Direct economic impact to unemployed youth through the
stipend.
• Youth support between three to five people with the stipend,
impacting on between 35 000 to 50 000 people.
• Youth who left the schooling system early is provided with a
SAQA/ NQF accredited qualification.
• Community service is performed throughout the NARYSEC
programme of action.
• Household profiling provides a national database of rural
people with a rich potential of research to guide future
activities.
39
IMPACT
• The training programme by the Department of Defence instils
discipline, patriotism, life skills, communication skills,
leadership skills, etc.
• Enterprize development skills will assist the entrepreneurs to
get a start in business.
• A well rounded young person will exit from NARYSEC with a
qualification as well as a member of a cooperative.
• NARYSEC is still a young programme (two and a half years
old) and the real impact will become evident over time.
40
SALIENT POINTS
•
•
•
•
The programme will evolve over time.
Community service is a key objective.
Household profiling will guide future direction of this project.
Skills development will include discipline, patriotism, life skills,
rights awareness and specific skills areas empowering youth
to change rural areas.
• Current area of focus is construction in rural areas.
41
LONG TERM PLAN WITH THE PROGRAMME
• In the short term the programme management is being
strengthened by adding more staff and obtaining facilities.
• The concept of a pipeline has been developed meaning that
youth is only recruited once the programme they will undergo
is known.
• The utilisation of youth presently in the programme will be
improved.
• Intergovernmental relations with local municipalities will be
strengthened.
• During January 2014, 4 600 additional youth will be recruited.
42