Agricultural cooperatives as a means of promoting local economic development in a township in South Africa

Abstract

ABSTRACT Cooperatives have long been recognized as a collaborative effort by a group of individuals to address their social and economic needs. In South Africa, cooperatives have been adopted to address the triple challenge of poverty, inequality, and unemployment. Drawing on 15 face-to-face interviews with members of agricultural cooperatives in a township in South Africa, this study interrogates the extent to which agricultural cooperative can enhance local economic development and sustain livelihoods. Agricultural cooperatives have been widely supported and promoted as a vehicle for smallholder farmers to directly participate in the mainstream economy of South Africa. The interviews suggest that some cooperatives were found to efficiently sustain livelihoods, and create limited job opportunities in the community. However, challenges like lack of resources, inadequate training, unregulated management, as well as other underlying internal and external shocks are hindering the contribution of the cooperatives to the local economy.