FREE STATE DEPARTMENT OF SOCIAL DEVELOPMENT DRIVES SHIFT TOWARDS SUSTAINABLE, IMPACT-DRIVEN CO-OPERATIVES

By Thembile Nqabeni

• Government introduces a stricter funding model prioritising sustainability, compliance, and measurable socio-economic impact, including clear eligibility criteria and application procedures to guide co-operatives.
• MEC Mathabo Hlalele calls for co-operatives to transition into viable economic enterprises contributing to job creation and market participation.
• Strengthened capacity-building and governance support to position co-operatives for long-term growth and competitiveness.

The Free State Department of Social Development, led by MEC Mathabo Hlalele, has strengthened its initiatives to position co-operatives as key contributors to economic transformation, job creation, and sustainable community development.

This follows a high-level engagement held on 22 April 2026 at Paradise Hall in Bochabela, Bloemfontein, which brought together all department-funded co-operatives across the province, alongside Community Development Practitioners from various districts.

The engagement forms part of a broader government intervention aimed at strengthening accountability, improving performance, and ensuring that public investment in co-operatives delivers tangible socio-economic outcomes.

Addressing stakeholders, MEC Hlalele emphasised the need for a decisive shift in the operation and management of co-operatives.

“The Free State Government has invested significant resources into co-operatives as part of our commitment to economic transformation and job creation. That investment must now translate into measurable impact,” she said.

The MEC raised concerns over the continued underperformance of some co-operatives, citing internal divisions, weak governance, and lack of strategic direction as key challenges undermining their success.
“We cannot ignore the reality that internal conflicts and the absence of a shared vision are collapsing initiatives that were meant to uplift communities. This must come to an end,” she stated.

In response, MEC Hlalele announced the introduction of a more stringent funding approach that prioritises sustainability, accountability, and long-term economic participation.

“There will be a shift away from supporting unsustainable projects. Government support will be directed towards initiatives that demonstrate viability, discipline, and the ability to access markets and generate income,” she said.

She further emphasised that co-operatives must evolve beyond dependency on government support and operate as competitive economic entities.

“We would rather invest in fewer co-operatives that deliver real impact than continue spreading resources across initiatives that do not change lives,” she added.

To support this transition, the department will intensify capacity-building interventions to strengthen governance, financial management, and operational efficiency.
“We are strengthening institutional support to ensure that co-operatives are properly governed, compliant, and positioned for growth,” said MEC Hlalele.

A strong emphasis was also placed on compliance and market readiness, particularly within the food production sector, where adherence to regulatory standards is essential to access formal markets.
“There is no reason why our co-operatives cannot meet South African Bureau of Standards requirements and access formal retail markets. Compliance is not optional—it is a prerequisite for growth,” she asserted.

MEC Hlalele further called for resilience, discipline, and unity among co-operative members, highlighting that collective effort is essential for shared economic success and community upliftment.
“If we are serious about addressing unemployment and poverty, we must build enterprises that are resilient, disciplined, and united in purpose,” she said.

The engagement also highlighted the importance of expanding meaningful economic participation, particularly among black-owned enterprises, as part of the broader transformation agenda.
“The transformation of our economy requires active participation. We must build enterprises that produce, compete, and take their rightful place in the mainstream economy,” she said.

Stakeholders also underscored the need to strengthen youth inclusion, positioning co-operatives as platforms for skills development, entrepreneurship, and intergenerational economic participation.

In closing, MEC Hlalele reaffirmed government’s unwavering commitment to building sustainable co-operatives that contribute to inclusive growth.

“We are resolute in our mission to build co-operatives that create jobs, empower young people, and drive economic development across the Free State,” she concluded.

Chief Director of Community Development, Mme Winkie Direko, echoed these sentiments, emphasising the importance of ownership and accountability among co-operatives.

“Government will continue to provide support, but the responsibility to succeed lies with co-operatives themselves. They must rise above division, embrace compliance, and actively participate in the economy,” she said.

The Free State Department of Social Development remains committed to strengthening partnerships, enhancing service delivery, and advancing a developmental agenda that places communities at the centre of economic transformation.