TEBELLO Tjapela, a local economist and the Chief Executive Officer (CEO) of the Phuthalichaba Savings and Credit Cooperatives Society Ltd, says the youth should engage massively in cooperatives to navigate their way out of poverty.

“They should heed a call to start thinking of cooperatives to break through poverty clutches,” he said.

Mr Tjapela’s advice is that the youth should not be afraid to roll up their sleeves and get their hands dirty on the ground.

He told Maseru Metro that cooperatives movement was an alternative tool which was important to reigniting a struggling economy, especially after the COVID-19 devastation.

“What is essential now is more production,” he said. “If there is more production, jobs could be created. People could then have an income that they could spend.” 

He said creating jobs and enhancing production were not usually achieved by private enterprises alone because there was usually a litany of obstacles they faced.

Usually a plethora of start-ups hit a brick-wall in the long run. In most cases, they remain as small businesses and never grow. But through cooperatives the financial resources are pooled together.

“This means every one could contribute his or her share towards a common goal,” Mr Tjapela said. “When people with different skills come together, that builds a good combination to start a business.”

He added that this could help to drive the country’s economy.

Thabo Shale, the CEO of the Lesotho Cooperatives said cooperatives had always been there since time immemorial.

“And Basotho have been working with them for many years to enhance production,” he said. “Basotho have always worked together to weed their fields, a typical example of cooperatives. Cooperatives simply mean working together for a common purpose.”

Cooperatives are administered under the Cooperatives Societies Act no 6 of 2000 which was amended in 2014 and Mr Shale said the amendment of the Act had plugged a hole for financial misstatements and irregularities.

“A cooperative should have a name and objectives. It should also have a physical address,” he said.

While this would help identify the cooperative amongst others, he said there were no age limitations to enter the cooperatives.

“So it is for this reason that there are also youth cooperatives,” he said. “From a youth to an elderly people, everyone is eligible.”

He said the cooperatives used to boost the country's economy many years ago, when Basotho preferred cooperatives to commercial banks such that most Basotho, who now join the cooperatives, are the elderly.

Admittedly, Mr Shale said the cooperatives were known as agricultural projects and were presumed as not fashionable by the youths