NATIONAL COOPERATIVE POLICY - UGANDA

NATIONAL COOPERATIVE POLICY - UGANDA AS AT 10th JANUARY 2011 BY THE MINISTRY OF TRADE, INDUSTRY AND COOPERATIVES 1.0 INTRODUCTION 1.1 BACKGROUND A Cooperative is defined as: “An association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise”. Cooperatives are based on the principles of voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives and concern for the community. In Uganda, cooperatives are organized in a four tier vertical structure of primary societies that consist of at least 30 persons aged above 12 years. A minimum of two primary societies form a secondary while two or more secondary societies form a tertiary which provides specialized services. Secondary and tertiary societies form the apex. Ugandans started organizing themselves into cooperatives in 1913 which operated informally until 1946 when the first cooperative ordinance was enacted. This also marked the birth of the Cooperative Department and the present cooperative movement. By the end of 1946 there were 75 organizations of a cooperative nature. 50 of these were agriculture marketing societies, 8 were shop keepers (supply) societies, 6 were consumer stores and the remainder were miscellaneous societies such as fishermen (mainly for supply of nets), cattle and dairy societies and one thrift society. The period 1946 to 1970 saw a significant growth of the Cooperative Movement especially in the cotton and coffee sectors. In 1951, cooperatives handled 14,300 tons of cotton and coffee. Following the acquisition of two coffee curing works and ten ginneries in 1956, the total tonnage rose to 89,308 tons by 1960. In 1965, out of 437,923 bales of cotton produced in the country, cooperatives handled 267,420 bales (61%) in addition to 40% of the Robusta coffee; valued at 60 million shillings and 90% of Arabic coffee valued at 30 million shillings. Beginning with the 1970s, the cooperatives were greatly mismanaged, interfered with, and alienated from membership. The Cooperative Movement was misunderstood and its economic and social impact greatly underrated by both the membership and public. This marked the beginning of a steady decline in the performance of cooperatives. The period through 2006 exhibited a continuous decline of cooperative commodity marketing, for instance, of the total coffee exports (130,068) tons in 1992/93, cooperatives accounted for 22% (28,585) tons. This dropped to only 2% (3,868) tons out of the total of 180,164 tons in 2001/02 and further to a merger 1% (2,104) tons out of 162,254 tons in 2006/07. While the performance of cooperatives declined, that of multinational companies increased from 14% (18,459) tons to a massive 83% (134,589) tons over the same period. On the other hand, as cooperatives commodity marketing declined other cooperative enterprises emerged; for instance, 2,351 SACCOs were registered between 2004 and 2008 with savings of over 100 billion shillings, total shareholding of over 23 billion shillings and loans of 77 billion shillings. 1.2 Rationale and Justification The Cooperative Movement’s aspirations are in line with the Rural Development Strategy for poverty eradication through commercialization of agriculture, provision of rural finance, improved market access, employment creation and industrialization. These are in line with existing programs being implemented by NAADS, UIRI and PFA. Cooperatives are grassroots organizations, multi-sectoral and pervade every aspect of human endeavour, be it in rural or urban areas. They have demonstrated the capacity to group together primary producers. This provides an opportunity for organizing small individual producers to solve the problems of financing, production, processing and marketing. Consequently, they are able to compete favourably in the national, regional and international markets. In addition, cooperatives provide a relatively more permanent institutional framework through which problems of basic human needs can be met on a voluntary basis. Cooperatives empower people by enabling even the poorest segments of the population to participate in economic progress; they create job opportunities for those who have skills but little or no capital; and they provide protection by organizing mutual help in communities. They also generate and equitably distribute wealth, raise the level of awareness, education and management skills. However, the effective realization of the cooperative advantage depends on the policy which guides the conduct of cooperatives and their integration in the development process. Moreover, the absence of the policy also undermines the current cooperative law and efforts towards the development of the Cooperative Movement. This policy is meant to set guidelines to facilitate the conduct and transformation of the Cooperative Movement into a more effective vehicle for poverty eradication and wealth creation. 1.3 Vision A self driven, vibrant, prosperous and gender responsive Cooperative Movement. 1.4 Mission To facilitate an organized, self reliant, democratically controlled and member centered Cooperative Movement through effective regulation, continuous technical support and resource mobilization. 1.5 Objectives The general objective of the National Cooperative Policy is to develop and strengthen the Cooperative Movement in order to play a leading role in poverty eradication, employment creation and socio-economic transformation of the country. The Specific Objectives are to: 1.5.1 Strengthen the Cooperative Movement to efficiently and effectively respond to member needs. 1.5.2 Improve the Cooperative Legal and Regulatory Framework. 1.5.3 Promote and enhance good governance in the Cooperative Movement. 1.5.4 Strengthen technical capacity of the Cooperative Development Department and the Local Governments. 1.5.5 Build an efficient and modern Cooperative Management Information System. 1.5.6 Develop the capacity of Cooperatives to compete in the domestic, regional and international markets. 1.5.7 Provide a framework for improving capitalization and diversification of financing tools appropriate for the Cooperative Movement. 1.5.8 Facilitate improved supply chain efficiencies and marketing infrastructure. 1.5.9 Diversify the type and range of enterprises that cooperatives undertake. 1.5.10 Address the cross cutting issues of gender mainstreaming and fair representation of marginalized groups, sustainable natural resource use, HIV/AIDS and Malaria. 2.0 SITUATION ANALYSIS The Cooperative Movement in Uganda is composed of 10,746 Cooperative Societies with a membership of 3.9 million people. There are 10,621 Primary Societies, 121 Secondary Societies including 80 Area Cooperative Enterprises, 4 Tertiary Societies and 1 Apex; the Uganda Cooperative Alliance Ltd. Of the total registered Cooperative Societies, 83% are on permanent registration while 17% are registered on probation. The Cooperatives are generally categorized as follows: i. Production and Agricultural Marketing – 55% ii. Savings & Credit - 23% iii. Multi-purpose – 6% iv. Services – 16% THE COOPERATIVE MOVEMENT IS CHARACTERIZED BY THE FOLLOWING 2.1 Strengths 2.1.1 User Responsiveness In Uganda, the majority of farmers are engaged in small scale agricultural production. However, they lack organization at the farm and marketing levels to exploit their land and labour resources, engage in collective marketing and enhance their bargaining power. The main strength of the Cooperative Movement lies in the fact that it is grassroots based, multi-sectoral and pervades every aspect of society, both rural and urban. It is also user friendly, managed and is based on a strong spirit of voluntarism. Cooperatives have demonstrated the capacity to provide a versatile organizational framework to facilitate Primary Producers’ involvement in domestic and international trade and provide a relatively permanent institutional framework through which problems of basic human needs can be addressed. In addition, the Cooperative Movement responds to the Members’ needs for education and management skills and facilitates their integration into the development process. 2.1.2 Income Generation, Distribution and Redistribution The adverse nature of the cooperative business offers a great potential to create employment, generate wealth and equitably distribute it. 2.1.3 A Wide Network of Cooperatives and their Infrastructure The current 10,746 Cooperative Societies are spread throughout the country which makes the Movement the most accessible institution in Uganda. These societies own stores, land and other assets. It is therefore possible to deliver relevant services to a wider population segment through the Cooperative Movement more than any other institution in the country. 2.1.4 Savings Culture within Cooperatives Cooperatives emphasize savings in their operations thereby mobilizing the communities to save as individuals or groups to enhance production, investment and capital accumulation. The drive to establish at least a SACCO per Sub- County will consolidate the role of the Cooperative Movement in savings mobilization and increased household incomes. 2.2 Weaknesses 2.2.1 Governance and Leadership gaps Most of the problems faced by Cooperatives arise due to bad Governance and poor leadership. Good Corporate Governance Principles demand that leaders act in the best interest of the organizations they lead in order to achieve their objectives. Good Corporate Governance practices are built on five pillars namely: i. Accountability; ii. Efficiency and effectiveness; iii. Probity; iv. Integrity; v. Responsibility. Although Cooperatives are democratic in nature, most of the membership has not taken advantage of this democracy to elect able leaders and appoint competent manages to ensure that the cooperative ideals and aspirations are realized and conformity to the Cooperative laws. The Uganda experience shows that cooperative leaders are not necessarily a reflection of the required leadership competencies, patronage and commitment to the cooperative business. Some of the consequences of this practice are the dominance of the cooperatives by a few members, the lack of the will to practice democracy and accountability which undermines sustainability of the cooperatives. 2.2.2 Inadequate Knowledge on Cooperatives Most of the current cooperative membership is not adequately educated and trained in cooperative matters; this leads to member exploitation; patronage and poor accountability negatively impact on cooperative business. Generally there is inadequate knowledge on the formation of cooperatives, leadership and governance, markets, supply sources and cost analysis, capitalizing the cooperative, member investment, sources of debt capital, conduct of member meetings. This continues to hamper proper planning for the benefit of members of the Cooperative Movement and the development of the cooperatives. 2.2.3 Inadequate Human Resource Inadequate human resources, in terms of numerical strength, skills and experience, is one of the major weaknesses facing the Cooperative Movement. This is in part attributed to the restructuring of Government departments which left cooperatives with very few staff especially at local government level. The remaining structures were not adequately facilitated and equipped to effectively service the entire Cooperative Movement. Due to various constraints within cooperative societies and competition in the labour market, many cooperatives can not attract and retain highly qualified personnel which results into hiring less qualified ones or none at all. 2.2.4 Inadequate Formal Cooperative Education Uganda’s current education curriculum provides inadequate cooperative knowledge. The Uganda Cooperative College Kigumba offers only certificates and diplomas which do not match the ever changing global business environment. 2.2.5 Dented Image and Weak Advocacy The Cooperative Movement has suffered a real and perceived negative image. This is attributed to various disadvantages suffered by the Cooperative Movement such as crop failure, market and price fluctuations, political instability, loss of assets and weak advocacy by the Cooperative Movement itself. Other internal weaknesses amongst particular societies and the failure of some has so seriously dented the public perception that it is often difficult to attract new and energetic members to the Cooperative Movement. 2.2.6 Low Capitalization Insufficient Working Capital is another problem facing the Cooperative Movement in Uganda. This is attributed to the limited sources of Cooperative Financing which include: Entrance fees, Share Capital, annual Subscription Fees and Retained earnings. The failure of members to raise meaningful capital compels societies to take loans, at interest rates of as high as 29% per annum, to run Cooperative Business. Besides the lack of acceptable collateral, most financial institutions are not willing to give loans for agricultural purposes. This problem is worsened by poor budgetary controls in many cooperatives. Limited financial resources have other knock – on effects on Cooperative Business, such as constrained acquisition of modern equipment and tools as well as attracting and, retaining qualified professionals. As a consequence, cooperatives have not achieved the desired growth and effectiveness in service delivery to the members. 2.2.7 Poor Storage facilities and Other Infrastructure Uganda is faced with an acute shortage of modern agricultural commodity warehouses, processing machinery, transport and other equipment. For instance, the National Warehouse Survey of 2007 by the Ministry of Trade, Industry and Cooperatives shows that there are 866 warehouses with a total storage capacity of 450,733 metric tones. Of these, only 3% meet the standards for agricultural marketing while 8% require minor repairs. The majority of processing machinery is obsolete. This contributes to high post harvest losses, estimated between 40 – 50%, and compromises quality as well as commodity prices. This poses a great challenge to the Cooperative participation in the commodity value chain thus limiting the competitiveness of their commodities. 2.2.8 Weak management Information System The existing Cooperative Management Information System is characterized by paper based files, low number of ICT equipment, high degree of ICT illiteracy and poor data management practices. This results into the scarcity of reliable and accurate data for cooperative planning, monitoring and decision making at all levels. 2.2.9 Inadequate Legal and Regulatory Framework The current Cooperative Law does not adequately address wome of the emerging issues within the Cooperative Movement. The law is inadequate on such issues as governance, education fund, dispute settlement, offences and penalties, ethics and code of conduct. 2.3 Opportunities 2.3.1 Strong Political Will and Stability The National Strategy for Poverty Eradication through Agricultural Modernization, Employment Creation, Deepening and Widening of Financial Services Outreach, Industrialization and Infrastructural Development, is an opportunity for the development of the Cooperative Movement. Uganda’s economic reforms have achieved a lot in terms of economic growth averaging 6% of GDP and poverty reduction from 56% in 1992 to 31% I 2007. Government recognizes the potential of the Cooperative Movement to generate wealth, contribute to further poverty reduction and foster wealth redistribution especially in rural areas. The political leadership not only advocates for the formation of cooperatives, but is also committed to the creation of a favourable environment for Cooperative Development. Political stability and security in most parts of the country is conducive for Cooperative Development. 2.3.2 Labour Abundance and Flexibility One of Uganda’s major strengths is the flexibility of its labour market where the country is ranked 8th in the world and 1st in Sub-saharan Africa on the “Doing Business database” in terms of the ‘ease of employing workers.’ While labour markets in Uganda are flexible, this does not seem to flow through to productivity where the country is ranked just 109 out of 125 countries in terms of relationship between pay and productivity. Uganda also ranks relatively high on the private sector employment of women (8th in the world), indicating that business provides women with almost the same opportunities as men to rise to positions of leadership. The country’s labour force increased from 9.8 million in 2002/03 to 10.9 million persons in 2005/06 representing an annual growth rate of 3.6% and may by now be well over 12 million. More than 65% of these people are employed in agriculture; 25% in the service sector; and 10% in the industrial sector. It’s inevitable that more people will move from agriculture to the industrial and services sector as the structural transformation of the economy takes root. It is therefore important that cooperative businesses are strategically positioned to exploit economic and labour market shifts in the country as well as other global trends. 2.3.3 Abundant Natural Resources Uganda has a rich diversity of natural resources such as the numerous water bodies for irrigation, electricity generation, transport and a habitat for several aquatic species. Others include favourable climatic conditions, wild life, minerals including Gold, Zinc, Diamonds, Vermiculite, Silica, Petroleum and Fertile soils. These provide an opportunity for the diversification of Cooperative Enterprises. 2.3.4 Existence of Trained Cooperative personnel within the Community There is a pool of trained cooperative personnel within the community. These include all the unemployed graduates from various cooperative training institutions and the former cooperative extension staff. These have the requisite technical know how, qualifications and experience to manage the cooperatives. In addition, Uganda produces over 20,000 University graduates per year who can be retooled to serve the Cooperative Movement. 2.3.5 Existence of a Pool of Potential Cooperators within the Society Uganda has a population of 29.6 million people of which 3.9 million are cooperative members. This leaves an untapped potential of approximately 9 million people from which the Cooperative Movement can recruit. Some of these are already organized into formal and informal non cooperative associations which include the NAADS farmer groups, UNFFE groups, ROSCAS, Burial groups, Village Savings and Loan Association and Employee Associations which can be mobilized into formal Cooperatives with relative ease. 2.3.6 Literate Community The national Household Survey 2005 – 06, puts the nation’s literacy rate at 69%. This is attributed to among others UPE, USE, FAL and COPE programmes. These programmes are important for the facilitation of Cooperative Education and strengthening of the Cooperative Management. In addition, Uganda produces over 20,000 University graduates per year who can be retooled to serve the Cooperative Movement. 2.3.7 Wide Scope of Cooperative Enterprises Cooperatives exist in virtually all sectors of the economy. However, in Uganda they are predominantly engaged in the production, processing and marketing of agricultural products like: Coffee, Milk, tea, Cotton, beans, maize and Honey. There is limited involvement in other areas such as housing, transport, insurance, finance, health, environment and tourism. Unfortunate incidences of crop failure due to pests and diseases, and other vagaries of nature, leave the cooperators with no alternative choices to rely on which, limits wealth creation. This narrow scope therefore presents the opportunity for further diversification of the cooperative enterprises. 2.3.8 Market Expansion Uganda’s internal market has increased due to sustained population growth, increased school enrolment, urbanization, industrialization and improvement in the per capita income. In addition, Uganda’s strategic location within the great lakes region presents a huge export market potential for Cooperative products to Sudan, the Democratic Republic of Congo, Kenya, Burundi, Rwanda and Tanzania. Uganda being a member of regional and international trading blocks presents a good opportunity for market expansion. The development of cooperative business should therefore be strategically tailored to maximize the benefits from the expanded markets. 2.4 Threats 2.4.1 Inadequate Infrastructure According to the World Competitive Report 2006, infrastructure is the second factor of Uganda’s Competitive Disadvantage. The country ranks poorly on the quality of electricity supply, roads, port and railroad development. The investment in Bujagali Hydropower and the anticipated Karuma will add significantly to the current installed power capacity. In the meantime, the country’s electricity generation capacity will be expanded further through a combination of thermal, mini hydro – electricity plants and solar voltaic systems. The real challenge, however, is that economic growth is highly correlated with power consumption. The current power generation expansion plans will barely meet anticipated demand from current growth, let alone a surge from a revitalized and faster growing industrial sector. The challenge is to accommodate the extra demand from a faster growing industrial sector and this may require increased use of independent power plants and diverse sources of supply. This poses a threat to the diversification of cooperatives as well as the efficiency in the running of the existing cooperative business. Other infrastructural deficiencies that are closely related though not entirely attributed to power inadequacy are low Internet and telephone connectivity, and high tariffs. Given the global trends, the ensuing ineffective communication is bound to constrain the development of the Cooperative Movement and as such, matching interventions are vital to uplift the overall competitiveness of the country in the medium to long term. 2.4.2 Entry of Multinational Corporations The onset of economic liberalization triggered off greater participation of multinational corporations in the local businesses previously dominated by cooperatives and other local players. The entry of regional and global players with higher skills and organizational quality inevitably relegates Cooperative Societies to the lower business side. Moreover the participation of these players in the Ugandan economy is likely to intensify, hence the possibility of more sustained competition and increased marginalization of the cooperative societies particularly at the primary level. The faster regional markets grow, the more the likelihood to attract the interest of low – cost global competitors. Stiff competition extends throughout the value chain from innovation, R & D, design, production and processing to services and management. This presents a challenge to the locally focused firms. There is also the proliferation of substandard and counterfeit goods; particularly agricultural and industrial inputs on the domestic economy. This has adverse effects on the production and productivity of cooperatives which ultimately impedes access to foreign markets. 2.4.3 Unfair Business Practices The operations of some individual business people and firms (middlemen) engaged in the processing, marketing and service provision in the domestic market offer stiff competition to the cooperative business. These persons have a competitive edge over cooperatives because they offer instant and sometimes advance payments. This practice tends to be exploitative as it not only ties producers to the middlemen but often compromises quality standards, compliance to cooperative behavior and eventually the international market for the products. 2.4.4 HIV/AIDS and Malaria The 2005 HIV/AIDS National Status Reports indicates prevalence rates of 6.4% and 0.7% for persons aged 15 – 49 years and children less than 5 years respectively. Although the Health Surveillance Reports indicate very high levels of awareness, increased levels of knowledge about protection from HIV/AIDS and increased condom use in non – regular partnerships, the pandemic continues to affect the population in various ways. Like HIV/AIDS, Malaria continues to claim lives of the productive members of society, reducing the working time and energy of the people. The effects of these diseases pervade nearly all aspects of society; the Cooperative Movement inclusive. 2.4.5 Environmental Degradation From 1971 to 1997 Uganda lost 50% of its forests including virtually all natural ones. Between 1998 and 2005 the country lost a further 26% of the remaining forest cover and deforestation continues at a rate of 2.2% per annum; mostly due to subsistence farming, cutting wood for fuel and colonization by the burgeoning human population. Furthermore, water bodies and wetlands have been so degraded that the water level of lake Victoria has dropped by more than a metre. The net effect of environmental degradation has been frequent and severe occurrences of drought, floods, landslides and hailstorms. These negatively affect cooperative activities hence the need for mainstreaming environmental concerns in cooperative business. 2.4.6 Lack of Gender Awareness among the Population The lack of gender awareness among the population causes people to ignore different situations and needs of women and men throughout the process of decision making, planning, implementation, monitoring and evaluation. This disadvantages women and other vulnerable groups in issues of access to and control of resources and benefits as well as equal participation in the Cooperative Movement. 3.0 GUIDING PRINCIPLES The success of the Cooperative Movement will depend on the way it adapts to the environment created by the Government’s macro – economic variables, other public policies as well as international trends. The national Cooperative Policy is therefore guided by the following principles: i. Statement on Cooperative Identity The Policy Shall Conform to the universally accepted Cooperative principles of: Voluntary and Open membership, autonomy and independence, education, training and information, cooperation among cooperatives and concern for the community. Cooperatives are also based on the values of self – help, self responsibility, democracy, equality, equity, solidarity, honesty, openness, social responsibility and caring for others. ii. Public – Private Partnership The Government shall partner with the private sector in the implementation of the National Cooperative Policy. Government shall put in place the necessary supportive infrastructure, regulate and provide technical support for cooperatives’ activities while the core cooperatives’ businesses shall remain in the domain of the Cooperative Movement. The Government shall also promote synergies between the Cooperative Movement and other private sector in the implementation of this policy. iii. Gender Responsiveness and Equal Opportunities for All Creating equal opportunities for participation in Cooperatives through entrepreneurship development, promoting involvement of disadvantaged groups, gender mainstreaming and sensitivity to gender specific concerns in the conduct of cooperative business is a key consideration for this policy. iv. Environmental Sustainability Cooperative Business shall be conducted in a manner that harnesses environmental sustainability. v. Recommendation 193 on the Promotion of Cooperatives This policy is cognizant of the ILO Recommendation 193 which emphasizes promotion and strengthening of the identity of cooperatives. vi. Quality Assurance, Standards and Competitiveness. The National Cooperative Policy provides mechanisms and systems for the standardization of the operations and service delivery geared towards promoting competitiveness and quality assurance. vii. Integrated Cooperative Business The National Cooperative Policy seeks to strengthen the linkage between finance, production and marketing as outlined in the Essential Triangle of Cooperative Production. 4.0 POLICY ACTIONS 4.1 Strengthening the Cooperative Movement The Government Shall: 1. Review the status and operations of the existing Cooperative Societies countrywide to make them more responsive to member needs and implement the necessary revitalization interventions. 2. Mobilize people to form Cooperative Societies that suit their common interests. 3. Facilitate the establishment of Tertiary Cooperatives to provide specialized services such as Cooperative Insurance and Commercial banking. 4. Re-build the Cooperative image through improved governance, better service delivery and publicity campaigns among other measures. 5. Support the development of all types of cooperatives into strong and sustainable institutions. 6. Promote close collaboration between Regional and International Cooperative Movement. 4.2 Compliance with Relevant Laws The Government Shall: 1) Review, amend and where appropriate establish relevant laws and regulations. 2) Review the structure and operations of the Cooperative Development Department both at the central and local government levels to make it more effective in regulating the Cooperative Movement. 3) Review the structure of the Cooperative Movement. 4.3 Compliance with Relevant Laws The Government Shall: I. Develop, disseminate and enforce compliance to the cooperative code of best practice. II. Deregister and liquidate non-compliant cooperatives. III. Supervise, monitor and evaluate cooperative societies’ activities. 4.4 Quality assurance, Standards and Competitiveness. The Government Shall: i. Facilitate, disseminate and promote application of standards to cooperative products and services. ii. Support Warehouse Receipt System, Commodity Exchange and collective marketing through unions and primary societies. iii. Work with public and private training institutions to provide business and entrepreneurial skills that promote the competitiveness of the Cooperative Movement. 4.5 Diversification of Cooperative Enterprises Government Shall: 1. Facilitate feasibility studies to establish other viable cooperative enterprises. 2. Generate and disseminate information on viable cooperatives through magazines, publications, seminars and workshops. 3. Mobilize and sensitize communities about the different types of cooperatives. 4. Promote knowledge and skill transfer through study visits to facilitate learning from cooperatives’ best successes. 5. Promote new cooperatives enterprises based on existing Industrial and Agricultural Zones among other considerations. 6. Promote, undertake and facilitate research and development in the Cooperative Movement. 4.6 Human Resource Development The Government Shall: 1. Undertake a Comprehensive Cooperative Training Needs Assessment. 2. Conduct a Comprehensive Member Education and Training Program. 3. Develop Training Materials to facilitate the delivery of effective member education. 4. Monitor and evaluate education and training programs. 5. Translate and disseminate cooperative education materials and information into Swahili and local languages. 6. Strengthen the Cooperatives Development Department through recruitment of staff and provision of continuous staff training. 7. Facilitate cooperatives to participate in the national, regional and international cooperatives trade fairs. 4.7 Management Information Systems (MIS) Government Shall: I. Upgrade and automate the existing Management Information System of the Cooperative Movement. II. Network with relevant private and Government agencies to provide timely and relevant market information to cooperators and other key players in the sector. III. Disseminate relevant information for advancing the objectives of the Cooperative Movement. IV. Establish and manage a Cooperative satellite Account. V. Carry out Cooperative Societies Mapping to ease interventions by the various stakeholders. 4.8 Promoting Cooperative Activities at the Regional Level Government shall: 1) Ensure that the Cooperative Policy and Movement does not introduce barriers that may be a hindrance to the EAC regional integration. 2) Monitor and evaluate the implementation of the EAC Council decisions an Cooperatives. 3) Establish collaborations between the regional and international Cooperative Movement and other agencies. 4.9 Cross – Cutting Issues 4.9.1 Gender Mainstreaming and Fair Represetation of Marginalized Groups Specifically it shall promote: a) Gender equality. b) Awareness and transformation through sensitization on gender issues. 4.9.2 Cooperatives and Sustainable Natural Resource Use The Cooperative Movement shall: i. Conduct awareness campaigns on environmentally friendly practices in Cooperative enterprises. ii. Mainstream environmental concerns in the conduct of Cooperative Business. iii. Develop and promote adherence to environmental standards through eco-labels. 4.9.3 HIV/AIDS and Malaria The Cooperative Movement Shall: 1. Conduct Cooperative Members’ Awareness of HIV/AIDS and Malaria. 2. Mainstream HIV/AIDS issues in the conduct of cooperative business. 5.0 IMPLEMENTATION, INSTITUTIONAL FRAMEWORK AND MONITORING In order to successfully implement the National Cooperative Policy, a Public – Private Partnership Approach shall be adopted. The Ministry of Trade, Industry and Cooperatives shall provide policy guidance, set standards and lead the implementation of the policy in collaboration with the Office of the Prime Minister and other relevant Government Ministries. These include the Ministry of: 1. Finance, Planning and Economic Development. 2. Local Government. 3. Agriculture, Animal Industry and Fisheries. 4. Gender, Labour and Social Development. 5. Education and Sports. 6. Justice and Constitutional Affairs 7. Lands, Housing and Urban Development. 8. Works and Transport. 9. Energy and Mineral Development. 10. Water and Environment. 11. Health. 12. Public Service. 13. East African Affairs. 14. Defense. In addition, the Ministry of Trade, Industry and Cooperatives shall collaborate with the relevant Government Departments and Agencies, the private sector organizations including the Cooperative Movement and CSOs. The Ministry shall work closely with the Ministry of Finance Planning and Economic Development, Local Government, Information and Communication Technology, the Department of Ethics and Integrity and the National Planning Authority to ensure the integration of cooperatives and other cooperatives related issues in the national development framework and Development Plans. The Ministry will also regularly interact with the academia and relevant civil society organizations. A National Cooperative Development Forum shall be established to facilitate regular interaction and information sharing. A National Cooperative Development Plan will be developed to guide implementation of this policy. Monitoring and impact assessment shall be carried out on a regular basis using appropriate sets of indicators and shall involve full participation of the key stakeholders. The Policy Analysis Unit of the Ministry shall coordinate the overall monitoring, evaluation and review of the policy. 5.1 Roles of Key Players The roles of each of the key players are defined below: 5.1.1 Ministry of Trade, Industry and Cooperatives i. Disseminating the policy. ii. Mobilizing resources for policy implementation; iii. Coordinating all MDAs involved in implementation of the policy; iv. De-registering and liquidating non compliant cooperative societies; v. Supporting functionality of District Commercial/ Cooperative Offices in the implementation of the policy; vi. Developing and adopting measures to facilitate cooperatives access investment finance and credit; vii. Mainstreaming and strengthening gender equality in cooperatives; viii. Promoting best practices on corporate governance in cooperatives; ix. Supervising operations of cooperative training institutions; x. Promoting the important role of cooperatives in transforming informal economy into legally protected work, fully integrated into mainstream economic life. 5.1.2 District/Municipal Commercial/ Cooperative Offices i. Implementing the national Cooperative Policy in their areas of jurisdiction; ii. Integrating the National Cooperative Policy issues in district development plans; iii. Providing technical support services to cooperative societies; iv. Supervising and monitoring cooperative activities; v. Collecting and disseminating cooperative management and market information; vi. Settling of disputes in cooperatives within areas of jurisdiction; 5.1.3 Apex Body i. Lobbying and advocacy for the Cooperative Movement ii. Promoting relationships and alliances between national and international bodies and institutions involved in the development of cooperatives iii. Image building of the Cooperative Movement. iv. Providing Capacity building and advisory services to the Cooperative Movement v. Mobilizing resources for the Cooperative Movement vi. Producing and disseminating IEC materials vii. Carrying out research on cooperatives viii. Investing in human resource development. 5.1.4 Tertiary Cooperative Societies i. Providing specialized services to cooperatives ii. Advocating for the members iii. Providing capacity building to the members iv. Representing the members at the Apex Body v. Providing linkages to national, regional and international market and networks vi. Investing on behalf of the members to generate wealth; vii. Investing in human resource development. 5.1.5 Secondary Cooperative Societies i. Bulking, processing and marketing members’ commodities ii. Procuring inputs in bulk for the members iii. Negotiating for better prices on behalf of the members iv. Establishing TDS v. Securing funding for Cooperative Business vi. Trading through the Warehouse Receipt System and the Uganda Commodity Exchange. vii. Investing in human resource development viii. Investing on behalf of the members to generate wealth. 5.1.6 Primary Cooperative Societies i. Marketing of agricultural products; ii. Disseminating information on standards and enforcing compliance iii. Providing the needed services to the members iv. Mobilizing savings v. Providing financial services vi. Investing on behalf of the members to generate wealth vii. Processing and adding value to primary commodities viii. Educating and training members ix. Investing in human resource development. 5.1.7 Development Partners i. Providing technical support for policy implementation; ii. Mobilizing resources iii. Facilitating access to regional and international data iv. Facilitating human resource development of the Cooperative Movement. v. Promoting programmes for cooperatives aimed at enhancing productivity. 6.0 CONCLUSION In order to build a strong, vibrant and prosperous Cooperative Movement, this policy shall promote a saving culture, high productivity, value addition and collective marketing that contribute to increased household incomes, economic transformation and development of the country. This shall be realized through; i. Instituting the necessary legal reforms to promote good governance that will facilitate rebuilding and revitalizing the Cooperative Movement; ii. Strengthening the Ministry of Trade, Industry and Cooperatives ad Local Government Cooperative offices for effective service delivery; iii. Diversification of Cooperative Enterprises; iv. Enhancing Productivity and Competitiveness; v. Cooperative training and education; vi. Promoting gender balance, fair representation of marginalized groups and good environmental practices within cooperatives; vii. Mitigating the spread and effects of HIv/AIDS and Malaria using the Cooperative Network; viii. Improving coordination within Ministries, Departments and Agencies, and private – public partnerships. The Consultative process that has been followed in developing this policy has helped to identify the priority areas for cooperative development and relate it to national development policies. Strategic actions to help achieve these priorities have also been arrived at through a consultative process mechanism. An effective and efficient public – private partnership arrangement is envisaged for the implementation of the policy.