Sustainable solutions to the resuscitation of agricultural cooperatives in Zimbabwe: A case for Manicaland Province
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Date
2015
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Abstract
Governments promote the use of cooperatives to enhance development of smallholder farmers. However, challenges are inevitable and this study investigated factors responsible for the collapse of agricultural cooperatives in Manicaland province of Zimbabwe, and developed propositions for use on a larger scale. Five cooperatives drawn from Mutasa and Chimanimani districts were chosen using purposive sampling based on overall performance of the cooperatives as main criterion (shown by available records) and management and staff availability. All selected cooperatives were willing to participate in the study and had been operational for more than five years. A qualitative research methodology was used, with focus group discussions (FGDs) and in-depth interviews for data collection. Participants included members of cooperatives, Agritex officers, field officers from different organizations and management of cooperatives. The performance of smallholder cooperatives was analyzed using the New Institutional Economics (NIE) theories namely transaction cost economics, agency theory, collective action theory and property rights theory. From the outcome, it was found that the general consensus among all participants was that the cooperatives are not sustainable in their current state. The results from the FGDs suggest that majority of respondents do not fully understand the cooperative principles and have high expectations of possible benefits. Due to the fact that some members joined cooperatives in order to access government funding and achieve some political objectives. Participants highlighted lack of skilled management, poor institutional and governance structures as the main problems affecting cooperatives. Results from the in-depth interviews suggest that the performance of the cooperatives was influenced by complexity of market environment and poor policy structures. Conclusion reached is that cooperatives require amendments to the Cooperatives Act of 2005 to promote good institutions and good governance. Also policy interventions are needed such as provision of regulatory framework that would allow competitive market environment in the study area.
Description
A thesis submitted in fulfilment of the requirements for the Degree of Master of Science in Agriculture
Keywords
Resuscitation, Zimbambwe, Agricultural cooperatives