Ministry does not fund cooperatives- Minister

The Minister of Small and Medium Enterprises and Cooperative Development Sithembiso Nyoni has said the government does not fund the cooperatives but encourages them to secure funds from the banks as legal entities.

Speaking in parliament Nyoni said the basic principle underpinning cooperatives as a business model is that members pull their resources together for the purpose of achieving a common goal.

"This nurtures a deep sense of ownership in the membership which in Zimbabwean context is in line with the policy of empowerment and indigenisation," she said.

"It is in this spirit that the Ministry does not fund cooperatives.  However, cooperatives themselves being legal entities can source funds from institutions such as banks and Small and Medium Enterprises Development Corporations."

The minister said the Ministry also sources funds for cooperatives in the specific areas especially in the fishing, savings and credit sectors from development partners.

"This funding is not obligatory and is disbursed as and when it is available," she said.