Cooperatives face a strange life in the Namibian economy.
They are mentioned in all major policy documents.
There is an act from 1996 and a Namibia cooperative policy from 2017.
The latter acknowledges the “slow start since independence, mainly due to low entrepreneurial skills”.
Only about 140 cooperatives exist as a going concern.
Cooperatives are of the utmost importance to social development. They currently experience a revival in the communal green energy sector.
To develop its full potential, a cooperative may not be seen as quasi-business.
In ethical terms, its most important feature is the sharing of responsibility among its members.
This responsibility has to be limited to its scope of operations and the capacity of its members. In economic terms, a cooperative is not profit-, but purpose-driven.
The establishment of a cooperative should not be compared to a small or medium enterprise. Its members and purpose need to be protected.
A chamber of cooperatives with obligatory membership should be established to monitor founding and the going concern.
This chamber should advise its members and protect creditors. A cooperative bank should serve the special needs of its clients who are members at the same time.
The bank can be insured against cumulative risks.
The Cooperative Act should be revised to establish a true pillar of a social economy.
Informal traders, small-scale farmers, vocational centres, cash loan and energy or healthcare initiatives, as well as digital initiatives may come under the roof of a protecting cooperative.
Private (financial) issues no longer affect the ongoing business operation. The community receives a continuous service from its cooperatives.
Being part of a national network prevents insolvency to levels below the rate normal in the business world.
From an ethical point of view, cooperatives address one of the most pressing issues of economic activity: They guarantee personal involvement and responsibility.
In socio-ethical terms, they are most valuable as they link subsidiarity and solidarity independent from the state.
Cooperatives can be successful independently if they are part of a big family with simple but strong rules.
In 10 years, half of the adult population in Namibia could be members of a service cooperative active within their local environment!
Andreas Peltzer
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