Encountering the Evidence: Cooperatives and Poverty Reduction in Africa
This paper demonstrates the contribution of cooperatives to poverty reduction in Africa since the liberalization of the sector in the mid 1990s. Cooperatives are increasingly being presented as a pre-condition for a successful drive against poverty and exclusion, more so in Africa. Discussion on the contribution of cooperatives to poverty reduction in Africa has often been based on their potential role rather than the actual impact, partly due to the dearth of empirical studies since the early 1990s. The study examines data from eleven African countries, collected in 2005. It demonstrates that cooperatives have:
- Contributed to the mobilization and distribution of financial capital;
- Created employment and income generating opportunities;
- Constituted a forum for education and training;
- Set up solidarity schemes to cater for unexpected expenses related to illness, social welfare, death and other socio-economic problems.
The paper illustrates that cooperatives in Africa have contributed to poverty reduction by mediating members' access to assets, which they have used to earn a living. They have also contributed to the reduction of exclusion and inequality, by integrating the poor and the relatively well-off in the same income generating opportunities.
