Sbizundlombane Youth Co–operative
Date of Incorporation
The co-operative is in the process of being registered. All the necessary documentation has been submitted to the office of the Registrar of Co-operatives and it is anticipated that it will be formally registered in early 2005.
Membership of the Co – operative
The co-operative has 10 female and 5 male members, ranging in age from 23 to 34 years.
Economic Activity
The core business of the co-operative is broiler production, vegetable production and flower cutting.
Organisational Form
The group is organized into a worker/producer co-operative in the agricultural sector.
Areas Served
The co-operative is located in Durban and is serving the whole area of Durban as well as surrounding townships and villages.
Story of the Co-operative
The group started out as a non-governmental organisation (NGO) in order to facilitate job creation for young people around Durban, Umlazi, and its surrounding areas. It later converted to a co-operative. The group who initiated the development of the co-operative had a variety of skills, which assisted them in getting support from the Durban Metro Council, as well as from other stakeholders in the community. This also encouraged the group to encourage other youth to join the organisation, which is now called Sibizundlombane. Members of the co-operative have achieved the following educational levels:
- Diploma in Agriculture;
- Broiler Production Experience
- Electrical Engineering; and
- Diploma in Marketing.
We began with a series of meetings to discuss the best business model for what we wanted to do. We chose the co-operative model because it best met the youth’s aspirations. After these discussions, we organized a number of workshops to discuss and learn more about the co-operative concept. At the founding meeting, the co-operative statute was adopted, the first Board of Directors was elected, and memberships were confirmed. We then submitted our registration document to the Registrar of Co-operatives.
The co-operative is located in Durban, one of the major harbours of South Africa, which therefore provides a market opportunity for the co-operative. The location also has the potential to expose the co-operative to international markets in the long term.
Vision/Purpose/Goals
To contribute meaningfully to poverty reduction and job creation whilst supporting the formation of other youth enterprises in Durban, Umlazi and surrounding areas.
Mission Statement
The primary purpose of the co-operative is to eradicate poverty and to reverse the trend of youth unemployment through creating self-employment opportunities. The co-operative will achieve its vision through the production of broilers, eggs and vegetables.
The co-operative has sought to utilize the rich skills base of young people in the area in order to reverse the unemployment situation around Umlazi.
The benefits of organizing as a co-operative have been that we have been able to create a business for youth that is receiving adequate support, and to produce high quality products through harnessing the skills possessed by the young people.
The co-operative intends to measure its success in the following manner:
- Providing high quality standards of production;
- Securing markets with government institutions, such as hospitals and prisons;
- Securing dependable markets in the private sector;
- Training highly skilled co-operative members able to produce in an effective and efficient manner; and
- Replicating the co-operative model in the Umlazi community and surrounding areas.
Starting the Co–operative
As indicated above, the group was initially organized as a Non Government Organisation by four young people skilled in agriculture. The co-operative emerged when we decided to convert the existing NGO into a co-operative.
From the beginning, the group was supported by Durban Metro Council in terms of funding and land allocation. The Umsobomvu Youth Fund assisted the co-operative to procure equipment and to build poultry production units. The support from UYF included a loan as well as skills development and mentorship support for a period of one year.
Organisational Structure
The members own a broiler production unit and a marketing agency through their co-operative. They democratically elect their Board of Directors. The board develops the co-operative’s policies and procedures. The co-operative has not yet appointed a management unit to manage the day-to-day affairs of the co-operative, which are currently carried out by members of the board.
At the founding meeting, it was agreed that each member would be required to hold a share valued at R300.00, to be deducted from the member’s earnings until the full amount is recovered.
Future plans
In the long term, the co-operative intends to expand its activities to include upholstery services and waste recycling.
Lessons Learned
The following lessons have been learned by the co-operative:
- The importance of an integrated approach to co-operative support and development;
- The value of a sound feasibility study and well-researched business plan;
- The importance of skills development as a basis of the co-operative’s success and viability; and
- The importance of electing the correct leadership in the co-operative, people who understand the co-operative concept and who allow members to contribute to the organisation’s decision-making processes.
Umsobomvu is a Nguni word for "a rising dawn". The Umsobomvu Youth Fund (www.youthportal.org.za), created in 1998 with a fund of one billion Rand, exists to encourage youth employment, to help young people organize and secure the training to enter into the labour force. Unemployment is a major issue in South Africa, where 7.8 million of the 19 million young people are unemployed - and the numbers of unemployed grow by 400,000 a year. The Fund has helped many young people in South Africa to start new co-operatives.
