Question NW443 to the Minister of Small Business Development
16 March 2023 - NW443
Kruger, Mr HC to ask the Minister of Small Business Development
Whether she has found that the current co-operative business model used by her department has been successful in the creation of jobs; if so, what total number of jobs were created by co-operatives using the specified model in the 6th Parliament?”
Reply:
The co-operatives development support model that we use has been moderately successful in the creation of jobs. Through the Co-operatives Incentives Scheme (CIS) that was implemented with guidance and leadership of the sixth (6th) administration from July 2019 until end of 2021/22 financial year, the Department of Small Business Development (DSBD) supported 128 co-operatives to the tune of R123.1 million which resulted in the creation and/or retention of 686 jobs. It is important to note that this performance was anchored on the principles and pillars espoused in the government’s Integrated Strategy on the Development and Promotion of Co-operatives (the Co-operatives Strategy). The Co-operatives Strategy sets out an implementation framework for the Co-operatives Development Policy of 2004 and the Co-operatives Act, No. 14 of 2005, as amended. It also ensures that government, through the utilisation of various partnership models, engages in joint initiatives with all relevant stakeholders, to promote strong, viable, self-reliant, autonomous, and self-sustaining the co-operatives movement in the country.
Our two implementing agencies; namely, the Small Enterprise Finance Agency (sefa) and Small Enterprise Development Agency (Seda) played a pivotal role in the development of co-operatives in the country. The agencies’ interventions are also based on the pillars of the abovementioned Co-operatives Strategy.
During 2019/20 (July) – end of 2021/22 financial year, Seda has assisted 4 493 Co-operatives. Those cooperatives created 236 jobs and sustained 1 369 jobs.
Table 1: Seda support to co-operatives
|
Financial Year |
No of Co-ops assisted |
Jobs created by Co-ops assisted |
Jobs sustained by Co-ops assisted |
|
2019/20 (From July 2019) |
297 |
40 |
389 |
|
2020/21 |
1 758 |
113 |
519 |
|
2021/22 |
2 438 |
83 |
461 |
|
Total |
4 493 |
236 |
1 369 |
In respect of funding support, sefa supported 34 co-operatives to the value of R13 million, which resulted in the creation and retention of 268 jobs. This performance relates to the period 1 July 2019 to 31 March 2022.
While the Co-operatives Strategy has made a marked contribution to the growth and development of co-operatives in the country, it is apparent that additional measures must be taken to improve the aforesaid contribution. Key amongst these measures is the intensification of market access efforts for co-operatives products and services in both the public and private sectors. This will ensure that co-operatives are able to increase their assets base as well as have healthier income statements and balance sheets.
Table 2: Total value of CIS support for the period July 2019 to March 2022
STELLA NDABENI-ABRAHAMS
MINISTER: DEPARMENT OF SMALL BUSINESS DEVELOPMENT