The challenges faced by the Masizame bakery as a co-operative in Steynsburg aimed at alleviating poverty

This study investigated the challenges faced by the Masizame Bakery as a cooperative in Steynsburg. The co-operative sector, tracing back to the 1800s, has become recognised as a key vehicle for community development and poverty alleviation. According to the Department of Trade and Industry (2012), international practices show that countries which have achieved economic development also have a vibrant and a dynamic co-operative sector, contributing substantially to the growth of their economies. The sector’s international success and foundations in agriculture have found resonance with the post-apartheid government in achieving social transformation and alleviating poverty in South Africa. The co-operative model in South Africa proved a success during the apartheid era in the agricultural sector with a turnover of about R22.5 billion. Post-1994 the government hopes to achieve the same level of success through the sector to transform the country’s socio-economic landscape. The co-operative sector’s principles of self-help and self-reliance have become synonymous with democratic South Africa’s government plea to active citizenry in development – Vuku’zenzele. Some South Africans have responded to this call to change their economic conditions through co-operatives. However, investment in the co-operative sector has found varying degrees of success and failure across South Africa’s provinces, with the Northern Cape, the Eastern Cape, and Free State experiencing the highest mortality rates. The areas’ rural hinterland has been attributed to this high failure rate, thus posing the need to investigate the challenges faced by co-ops in small towns such as Steynsburg. The study provides an overview of the sector’s history, including its growth in countries across the world. The role of co-ops in poverty alleviation has also been discussed. This role was interrogated in discussions held through interviews and focus groups with both members of the Masizame Bakery and other projects in the area, including public officials involved in both communit