An evaluation of impact of co-operative societies on poverty alleviation among the urban poor in Harare, Zimbabwe during the period 2008-2010

The main purpose of this study was to evaluate the impact of co-operative societies on poverty alleviation among the urban poor in Zimbabwe with particular reference to consumer co-operative societies in areas of agriculture, housing and micro- finance. The co-operative sector plays an important role in poverty alleviation since many unemployed people have turned to co-operative activities as a way of earning a lawful and decent living during a period in which Zimbabwe generally suffered immense impoverishment in the midst of the national economic meltdown that was characterised by hyper-inflation, de-industrialisation and mass unemployment. The period of study was as from January 2008 to August 2010. This period is significant in that many co-operative societies were formed with the following broad objectives: (a) economic power and through this power; (b) control of socio-economic institution, to eliminate exploitation of man by man to make the people of Zimbabwe self reliant; (c) skills management, goods and services and establish in themselves a sense of confidence, initiative and high development aspirations; (d) to provide an opportunity to develop the community; and a (e) collective way of living that provides a sound base for socialism and national solidarity ix In this study, two hundred and seventy four respondents were used as research subjects. This consisted of one hundred and sixty respondents from housing, twenty four from micro- finance, and eighty eight from agricultural co-operative societies which covered dairy, poultry and fishing co-operative societies. This also included the Registrar of Co-operatives and the Harare City Council Co-operative officer. The research instruments that were used for the purpose of this research study were questionnaires, field visits, interviews and observations. Use was also made of secondary data that was obtained from the offices of Registrar of Co-operatives and the Town clerk of the Harare City Council as well as from the various co-operative societies that constitute the research study’s sample. The key factors that account for the failure of co-operative societies included the lack of adequate funding, lack of relevant knowledge and experience about co-operative activities, conflict among co-operative society members, failure to follow co-operative principles, mixing politics with co-operative activities and lack of education and training. The study also found out that the key to the success of any co-operative venture includes some of the following factors: Proper application of co-operative principles, the provision of co-operative education to both the membership and management of co-operative societies and proper keeping of institutional records. Most important of which include membership, financial and asset registers. x The study recommends that the government should give adequate administrative and financial support to co-operative societies since they have a potential of alleviating poverty if properly managed. It is also further recommended that research be done in order to enhance the strategic management of co-operative societies since empirical evidence tends to suggest that they are a viable tool for broad –based participatory and democratic sustainable livelihoods development. The study also recommended further studies to be carried out on the applicability of cooperative principles in all environments since some co-operative societies that have followed these principles especially in the developed countries have proved to be suitable instruments for poverty alleviation