The National Development Agency (NDA) in South Africa has established a partnership with the German Cooperative Raiffeisen Confederation (DGRV) to promote sustainable livelihoods and economic participation of the impoverished through community-based cooperatives. The partnership aims to provide necessary support and training to the cooperatives for integrated community programs that boost financial and economic inclusivity.
DGRV to Provide Consultancy and Aid in Developing Cooperative Systems
The DGRV is an apex cooperative body in Germany and has connections with over 30 countries worldwide. It provides consultancy and aid in developing cooperative systems and structures to promote financial and economic inclusivity. Its mission within the Southern African Development Community (SADC) in South Africa is to increase the number of cooperatively organized groups across different sectors.
NDA and DGRV MoU to Support the Development of Community-Based Cooperatives
The MoU between the NDA and DGRV recognizes the distinct and complementary roles of both the organizations. They are committed to supporting and facilitating the development of community-based cooperatives at the local government level. Specific projects will be jointly determined on a case-by-case basis. The overall objective is to provide sustainable economic participation to those excluded from the economy within poor communities.
Cooperative Model as a Solution to High Unemployment Rate
The partnership is expected to play a crucial role in reaching poverty eradication goals by providing sustainable income sources for impoverished communities. The cooperative model is viewed as the only solution to address the high unemployment rate, as it allows the production of quality consumables at a lower cost to compete in markets. Empowering cooperatives will stimulate the economy and create sustainable income sources, reducing dependency on government assistance.
NDA’s Turnaround Strategy for Poverty Eradication
The NDA’s partnership with DGRV aligns with its turnaround strategy to create more jobs and promote active participation within the mainstream economy. The partnership will provide the NDA with vast experience to execute its mandate and make a significant impact in reaching poverty eradication goals. A steering committee will monitor, evaluate and compile impact assessment reports to measure the projects’ success, especially the percentage of cooperatives that grow due to the support received from the MoU’s implementation.