AMPCM considers Modern Cooperativism in Mozambique

Following the Modern Cooperativism festivities around the world, particularly in Mozambique, we spoke with stakeholders in this initiative, particularly in Mozambique, to better understand the challenges of practicing this activity. Dr. Neidy Lena Francisco Caetano, a native of Cabo Delgado, Mocímboa da Praia district, said the following:

- I have been working at the Mozambican Association for the Promotion of Modern Cooperativism (AMPCM) since 2018, where I serve as an agribusiness officer. I am grateful for the invitation from Jornal Preto e Branco for another conversation.

July 5th was International Cooperatives Day, and this year the date was celebrated under the motto Cooperatives promoting inclusive and sustainable solutions for a better world.

The festivities have been held annually on the first Saturday of July. Traditionally, the day is celebrated by reflecting on the contribution of cooperatives to the life of each country. This year, for example, we celebrate under the theme "Cooperatives Promoting Inclusive and Sustainable Solutions for a Better World." The choice of this theme reflects the cooperative model itself, which is one that consistently seeks solutions to the problems facing the country and its people.

Due to their resilience, even in times of crisis, cooperatives continue to find sustainable solutions to maintain the cooperative movement in Mozambique. It is currently undergoing a phase of consolidation and expansion, driven by civil society initiatives, international partners, and, to some extent, government programs. Despite legal and institutional gaps, the cooperative movement has been a relevant channel for organizing production, adding value, and economic inclusion in various regions of the country, especially in rural areas.

The most recent data points, for example, to the existence of approximately 3,500 registered cooperatives and over 7,000 pre-cooperatives. Pre-cooperatives are groups preparing to become cooperatives, associations, and particularly in the agricultural, savings, credit, fishing, and services sectors. Therefore, the current context is marked by the search for local solutions to problems such as poverty, financial exclusion, and food insecurity.

What benefits do these cooperative members have?

The gains are greater, as you know. Any cooperative, when it's created, aims to solve some problems that individual producers—that is, any member of a cooperative, any type of cooperative—face. So, they seek synergies, seeking solutions to problems jointly through the cooperative. And our cooperatives are no exception.

Right now, as you know, a good portion of our cooperatives are in the agribusiness or agricultural sector. So, they've been receiving assistance with the services they need for agribusiness. Services like agricultural inputs—cooperatives are concerned about and seek agricultural inputs for their members.

Even when accessing credit is difficult, they fight on, finding ways among themselves, within the cooperative, to finance their activities. They have access to facilitated market connections within the cooperative and, for example, are currently represented by the AMPCM, which is fighting for a legal framework so that these cooperatives can truly develop their cooperative businesses in a favorable environment. This year, for example, the theme chosen was "Cooperatives Promoting Inclusive Solutions and Societies for a Better World."

With this theme, we intend, as I said at the beginning, to show that cooperatives, the model, because the cooperative is an economic and social model, this economic model is a very resilient model, with the ability to survive, to fall and rise again, so to speak, even in adversity. So, cooperatives can, even in challenging environments like the ones our country experiences, with problems accessing credit, problems with inputs, market problems. So, cooperatives have this ability, even amidst these difficulties, to turn around and find solutions to their problems.

Today, for example, if you look at the global level, about 10% of jobs globally are provided by cooperatives. So, as you know, cooperatives are those companies that exist where other companies don't. If we look at rural areas today, you'll find, for example, the cooperative network in Mozambique, especially in the North Zone. You'll find warehouses, supply stores, hardware stores, and basic necessities for their members and their communities.

Therefore, they are a type of company that, let's say, goes beyond normal societies.

So, are cooperatives starting to provide employment in Mozambique?

Certainly, cooperatives are already starting to create jobs in Mozambique. Currently, as I was saying, we, like AMPCM, have around 500 affiliated cooperatives. Of this total of 350 cooperatives already registered and confirmed by legal entities, we also have over 490,000 members, and all of these cooperative members are engaged in some form of economic activity.

And that means that it does—if it farms, it has its own farm, it invests in its farm, it provides seasonal jobs, and it has a lot of people there in the communities, which many companies here barely offer. Therefore, the cooperative is a model that, in our context, in the context of our country, is a model that should be embraced. Because it creates these employment opportunities, even in rural areas, where it's very difficult to have normal companies creating jobs for young people, jobs for women, and overseeing all, let's say, activities linked to sustainability.

That's why the United Nations considers cooperatives to be the type of organization that can address the 17 Sustainable Development Goals. On the 5th, a workshop was held on the advances, challenges, and prospects of modern cooperativism. Several topics were discussed, including the transformative role of cooperatives in economic inclusion, their integration into public policies, and the involvement of youth and academia.

In short, we had a good workshop, with significant participation from cooperatives throughout Nampula province. We also had representation from the highest level of the provincial Executive Council, represented by His Excellency the Governor of the province. He demonstrated to us that he understands cooperatives and their role, and is committed to collaborating with them, engaging with the province's agenda to address existing problems. It was a very interactive workshop. We reflected, for example, on the many young people who were involved throughout the demonstrations. In a way, there was this understanding that, despite the violence during the demonstrations, young people need opportunities. This opportunity was widely discussed in our workshop. The MPCM, together with its partners, will support the provincial government in organizing these young people, all of whom were demonstrating and demanding employment or work opportunities. So let's support these activities, organize young people, train those young people to start developing some economic activities and create jobs and employability for themselves and for the communities or the people who are in those communities where we will have these future youth cooperatives.

The country is still struggling with the legal framework for cooperatives in Mozambique, marked by the lack of regulation under Law 23-2009 of September 8, which is therefore the general law on cooperatives, not the definition of the tax framework applicable to cooperative businesses.

What impact do these aspects have on the promotion and development of cooperativism?As we have repeatedly called for the intervention of all stakeholders, especially the government, to complete this legal framework, we are actually experiencing very difficult times because of this legal framework, which remains incomplete. Since 2024, there have been quite visible efforts to address this legal framework issue, and we are referring to this moment.

The General Cooperative Law was passed in 2009, and 15 years have passed since we have had no regulations or a tax regime applicable to cooperatives. So, we are working diligently with everyone, especially the government, to ensure there is agreement to approve these important policies and put them at the service of communities. I believe the discussion on the law's regulations is now complete, because we have been working with the National Cooperative Development Program, led by the Tax Authority, and the Ministry of Economy. There has already been consensus on finalizing the cooperative law's regulations, and we expect it to be submitted to the Council of Ministers at any moment.

 Until these legal provisions are approved, what is the role of the Mozambican Association in promoting cooperatives, only in the implementation of this law?

At this moment we continue, and this was part of the reflection at the International Day of Cooperatives workshop, that while we await the approval of the cooperatives law, we will continue to work.

 We have promoted various types of projects covering the various economic areas of cooperatives, enabling them to establish themselves, consolidate themselves, and contribute to increasing the income of their members and the well-being of the communities in which they operate. We have consistently advocated for policies or even the recognition of cooperatives. We recently held an event and were received by the President of the Assembly of the Republic, who expressed interest and support for the organization's cause, specifically in this area of policy approval.

 We also had a working meeting with the Minister of Development Planning to ensure cooperatives are included in the country's main development documents and policies. This year, for the first time, cooperatives were included in the National Development Strategy.