Parliament Shines Light on Cooperatives Development Act

Portfolio Committee on Small Business Development

The portfolio committee on small business development has called for a review of the Cooperatives Development Act.

The call follows a recent study tour to the Basque country and Madrid in Spain.

In a statement, the committee chairperson, Ruth Bhengu, indicated that one of the biggest lessons learnt on the study tour is the “fact that the Basque country applies the bottom-up approach with regard to the policy formulation process in so far as cooperatives are concerned”.

The chairperson added that the small business development department needs to base its support programmes and policies on the needs of cooperatives on the ground rather that providing services based on the “perceived needs by the officials in the department”.

The committee wants a review of the act “in order to redraft clauses of the Act which created bottlenecks and hindered bottom-up development of cooperatives”.

“It also recommended that the role of the Cooperative Banks Development Agency should be revisited, in order to make the agency more developmental than regulatory”.

Sabinet Cape Town Office