PROMOTING COOPERATIVES
IN MALAWI
PRESENTED BY : JOHN MULANGENI NKOSI
FROM SUPPORTING COOPERATIVES IN
MALAWI PROJECT
Presentation Outline
• Malawi Brief Country Profile
• Development of Cooperatives & Current statistics
• Supporting Cooperatives in Malawi Project Activities
• Project Challenges and Movement Challenges
• Proposed way forward
Map of Malawi
Malawi Brief Profile,
• A land-locked country in the southern part of Africa
• Shares boarders with Zambia, Tanzania and
Mozambique.
• Its total area is 118,480 sq km of which 24,400 sq
km is water(lake Malawi).
• Climate: sub-tropical; rainy season (November to
May); dry season (May to November)
• Terrain: narrow elongated plateau with rolling
plains, rounded hills and some mountains
Malawi Brief Profile
• Are of bantu origin and comprise many
different ethnic groups, plus Asians and
Europeans.
• Based on diversity of tribes there are also
diverse cultures.
• Very friendly and peace loving people. It is their
friendliness that makes the country known as
the Warm Heart of Africa
• Maize is the main staple food
Malawi Brief Profile……
History of the Country
• Established in 1891 as a British protectorate known as Nyasaland
• Got independent in 1964 and was renamed to Malawi.
• For three decades it was under one-party rule with its first
President Dr. Hastings Kamuzu Banda.
• From 1994 Malawi has been under multiparty era.
• Current President is Professor Peter Mutharika
Malawi Brief Profile…..
The Economy
• Agriculture based, maize is grown mainly for
consumption while tobacco, tea, sugar cane,
coffee and cotton are produced for exports,
with tobacco being the main export earner
followed by tea, sugar, coffee and cotton.
• Except for sugar and tea the rest is grown by
smallholder farmers.
• Other crops which are exported include rice,
macadamia, soybean and g/nuts.
Development of the Cooperative
Movement in Malawi
• First cooperative got registered in 1947- Lingadzi
Mbazi Mutual Cooperative Society and was in Lilongwe
District.
Development of the Cooperative
Movement in Malawi
The cooperative history in Malawi can be
divided in three eras:
Colonial era
from 1946 to 1964
Used Cooperative Ordinance from Britain
In 1962 there was cooperative college
Post independence era
from 1964 to 1994 era
Still used the inherited Cooperative Law from Britain
Government took over assets of the movement including
the college
Development of the Cooperative
Movement in Malawi Cont..
post multiparty era
from 1994 to Date.
There was a cooperative policy put in June 1997 and new
Cooperative law was put in place in 1998
There was now a considerable renewed growth of
cooperatives in all sectors
but
there was limited
education by the government
There was support for the financial cooperatives sector
but there was no education support for non financial
cooperatives
Development of the Cooperative
Movement in Malawi……contd
• First Cooperative policy developed in June 1997 and this was
followed by new cooperative law in 1998. These two documents
are the ones in use to date.
• Ministry of Industry & Trade is responsible
development of cooperatives.
for promotion and
• It is the custodian of the Cooperative Development Policy and the
Cooperative Societies Act.
• New Finance Cooperative Act enacted in 2012 to cater for growing
number of financial cooperatives. This falls under the supervision
of the Reserve Bank of Malawi.
Development of Cooperatives
Contd……Current Statistics
1. Financial Cooperatives
i.
Savings and Credit Cooperatives
-192 registered
2. Non-financial Cooperatives
i.
Producer and Marketing Cooperatives
-382 registered
ii. Multi-purpose Cooperatives
-Community Savings and Investment Promotion (COMSIP)
-107 registered
*There are currently 681registered cooperatives
Current statistics
DISTRIBUTION OF COOPERATIVES BY TYPE OF ACTIVITY IN
MALAWI (As in July 2014)
SACCOS
Tomato
Tobacco
Timber
Rice
Producer & Marketing
Other
Multipurpose
Macademia
Livestock
Legumes
Irish potato
Horticulture
Honey
Fisheries
Cotton
Coffee
Cassava
0
50
100
150
200
250
Genesis of the project Supporting
Cooperatives in Malawi
• UK College fact finding visit 2010 to gather
information for project (UK Co-operative Group
supported)
• Main gap identified was capacity building
• Work with African Development Bank –
transformation of water user groups to
cooperatives through training
• Application to Scottish government
Supporting Cooperatives in
Malawi Project Activities
• Project started in 2012 and will run up to 2015
• Covers all of Malawi
• Objective of Project is to:
provide capacity building trainings
provide tailor-made support, mentorship and advice to
start-up and established co-operatives
Assist selected co-operatives to identify markets
Support in the establishment of a national
Cooperative body
Project Achievements
• Provided support to cooperative trainings to 300 groups
in:
 Cooperative formation
 Record keeping and Financial Management
 Marketing and Sales Promotion
• Target was 2,700 learners. So far, 6,031 of which 4,108
women
• Provided financial support for 10 groups’ participation in
international trade fairs.
• Facilitating establishment of national cooperative body
One of the group that was assisted to attend an
international trade fair aimed achieving market
linkages for
Members of Nkhongono ku Banthu COMSIP Cooperative Society
Limited in Karonga District pose for a photo after receiving RecordKeeping and Financial Management training aimed at achieving
objective one for provision of large scale trainings to new and
existing cooperatives
Members contribute in the raising of capital after business
management trainings.
Members of Kapacha Dairy Farmers Cooperative in Mzuzu have
diversified their activities after being trained in Business
Management.
Members of Nagoneka COMSIP Cooperative Society Limited in
Blantyre District showcase some of their produce during Dr. Sara
Alldred visit. The Cooperative also helps them to procure farm
Inputs (seeds, fertiliser) which increases yields. More for families to
eat, and they can sell the surplus!
After training, members of Nagoneka Cooperative developed
weaving skills as part of a diversification strategy. Their desire is
able to find reliable markets abroad.
Project Challenges
1. Majority of group members are illiterate
2. Demand for training outstrips supply.
3. 200 groups waiting for training, average membership
100
4. 6,000 have been trained, 20,000 waiting
5. Remote locations, poor infrastructure (lack of project
vehicles)
6. How to embed a cooperative education tradition
Challenges Cooperative
Movement
1. Cooperative Policy and Law not aligned
with ILO recommendation 193 of 2002
2. In adequate Human and Financial resource
for Cooperative in the Department.
3. The country does not a cooperative
development strategy that would guide
promotion and development of cooperatives
Way forward
1. Training of lead people who can provide the training
to others
2. Project extension to reach out to many groups
3. Increase project funds
4. Procure project vehicles and recruit more staff
Way forward for cooperative Movement
1. Seek assistance technical as well as
financial for review of the cooperative policy
and cooperative legislation
2. Engage the Government to increase budget
allocation and expand staff in cooperative
department which currently has only 9
officers
3. Seek assistance technical as well as financial
for development cooperative development
strategy for the country.
End of Presentation
Thank you Very Much for your
attention !!
• Zikomo Kwambiri pomvetsera!!
•