Cooperatives and Employment in Africa

This paper explores the role of cooperatives in employment, which according to the author, is a traditionally neglected area. The author states that:

• More than 40% of all households in Africa are members of a cooperative society;
• Cooperative movement is Africa's biggest non-governmental initiative;
• Cooperatives play a significant role in many national economies;
• Cooperatives have created a great number of salaried jobs and self-employment opportunities in Africa.

The paper proposes a three-pronged strategy to exploit the employment creation potential of cooperatives fully:

• Supporting macro reforms and capacity building within organizations that provide assistance to cooperatives;
• Including cooperative development aspects into relevant development projects;
• Promoting worker-owned cooperatives, social cooperatives and financial cooperatives.

The paper concludes that cooperative action has become even more important in the context of structural adjustment that has, in many countries, adversely affected the rural and urban poor.