EAC Cooperative Societies Bill seeks to stimulate trade

Kampala – Proponents of the co-operative movemnt in East Africa are optimistic that the East African Community (EAC) Co-operative Societies Bill 2014 could be approved at next month’s Heads of State Summit in Nairobi. The bill, being advanced by the regional members of Eastern Africa Farmers Federation (EAFF), seeks to realise and enhance the engagement of the co-operative movement in the EAC integration process. According to Uganda’s Trade, Industry and Cooperatives Minister Amelia Kyambadde, the country is optimistic that the envisaged law is timely as it is in the process of reviving and strengthening co-operatives to realise more benefits from cross-border trade. Co-operative movements were hit by challenges from the 1970s through to the mid-2000s, but the agenda is fast-gaining momentum and stimulating a lot of interest across the region. Key intentions of the bill The bill intends to harmonise national co-operative laws in the EAC partner states, and to provide a framework for co-operatives to exploit the EAC regional integration agenda. In a business sense, the bill considers boosting effort in helping members of co-operatives, especially farmers to get a clear understanding of the EAC Common Market protocols which will, at the end, ease regional trade for the benefit of members. Kyambadde explained that the piece of legislation comes with development-focused provisions like creating a framework for partnerships and joint ventures expected to operate beyond the confines of the EAC member states – this will boost collective marketing and realisation of large economies of scale. It proposes to permit co-operatives to draw their membership from any of the EAC partner states. This means that a coffee co-operative union in Uganda can have members that are coffee primary co-operative societies from Rwanda, Burundi, Kenya, or Tanzania. Similarly, a Sacco in Uganda can get members from any of the countries. “Different cooperatives in our countries have varying degrees in terms of competitive advantage in production, trade and advocacy; therefore, merging regional capabilities will make them emerge stronger,” said the minister. Mike Sebalu, a member representing Uganda in the East African Legislative Assembly (EALA), noted that the Assembly overwhelmingly supports the bill and they expect it will be signed into law after all the second and third readings in the House are done. Sebalu, the prime mover of the bill, said EALA, in close collaboration with EAFF, held public hearings across the EAC region in September. Sebalu sounded optimistic that the bill would expectedly be signed into law by the heads of the partner states during the EAC Heads of State Summit due in Nairobi, Kenya next month. “In this bill, we are exploring possibilities of involving the bulk of East Africans indulged in primary production to partake in the regional integration agenda and tap into its benefits,” he said. Sebalu explained that the regional law will be supreme over the respective national laws operating in the countries, without any form contradiction because the provisions were tabled before the stakeholders and debated accordingly. The state of coops in EAC As of 2013, Kenya is reported to have the highest number of registered co-operatives in East Africa, at about 15,000; the co-operative movement in Kenya is the most advanced in Africa. According to the International Co-operative Alliance (ICA), 18 of the largest 20 Saccos in Africa are from Kenya. In addition, according to the World Co-operative Monitor Report of 2014, Co-operative Bank of Kenya is the 70th largest co-operative in the world (and largest in Africa) in terms of turnover over GDP per capita. Rwanda has over 6,000 registered co-operatives. Tanzania and Uganda each reported at least 9,000 registered co-operative societies in their respective countries, most of which are agriculture-related co-operatives. In Uganda, agriculture co-operatives account for over 50 per cent of co-operatives in the country.

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EAC Cooperative Societies Bill seeks to stimulate trade