The sustainability of rural co-operatives within the Eastern Cape with reference to Mbhashe Local Municipality

Mbhashe Local Municipality is part of eight local municipalities that make up Amathole District Municipality. The study is conducted in Mbhashe local Municipality where two co-operatives have been sampled. The purpose of the study was to investigate the challenges faced by co-operatives in achieving its intended purpose (i.e. alleviating poverty, creating employment and generating income). It is the intention of the researcher to investigate the socio-economic role played by co-operatives in this afore mentioned local municipality. For the research to be able to examine and analyse the performance and challenges faced by co-operatives around Mbhashe certain key aspects were extensively taken into consideration. These aspects are co-operative leadership, management structures, external support from different stakeholders, like different government departments, communities where co-operatives are located, and the role of NGO’s. It was the intention of the researcher to analyse the type of support given by each of the above mentioned stakeholders. It was through the study that the research was able to deduce whether the support given by these various stakeholders was enough or not in ensuring viability and sustainability of co-operatives. In conducting the research a qualitative approach was used whereby various instruments were used to collect data. It was through the variety of instruments used that the researcher managed to capture the challenges faced by co-operatives. Apart from the challenges which were the main focus of the researcher, the findings also reveal that co-operatives play a vital role in socio-economic development. This is more evident in rural areas such as those at Mbhashe Local Municipality. There is undisputed evidence shown by co-operatives that community members do benefit from the produce created by co-operatives. If co-operatives can receive the type of support they deserve, poverty in rural areas can be put to absolute minimu