An organisation formed by group of people with a similar objective which is derived from a common ground to address their challenges.

Common basic principles for the co-operatives are:

1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training and information
6. Cooperation among co-operatives
7. Concern for community.

When forming a co-operative, there are five things that one must make sure of:

1. Meeting of all members to speak to your interest
2. Appoint a steering committee that will oversee the administration work of the organisation.
3. Formation meeting to deal with founding documents that defines the organisation.
4. The board meeting to establish an executive of the organisation.
5. Registration of the organisation with registrar of cooperatives is very key.

Levels and Kind of Co-ops

• Primary Co-operative
  – Formed by a minimum of five persons
• Secondary Co-operative
  – Formed by two or more primary Co-ops,
• Tertiary Co-op
  – Formed by Secondary co-ops or both secondary and primary co-ops

Support to Co-ops in the Northern Cape

• Expose product ready co-ops to exhibitions for enhancing their product marketability,
•  Link Coops to SEDA for ongoing capacity building,
• Assist co-ops with referrals to relevant business support orgnaizationsin relation to their needs,
• Assist Co-ops with application for Tax Clearances,
• Assist Coops with accessing the Dti Support Scheme namely the Cooperative Incentive Scheme (CIS/ R 350 000)

- It is not a Cash Financing Scheme.
- Oftenly used to purchase start up equipment or goods.
- For Agricultural Co-ops, it will not be used to purchase livestock, but rather equipment required to advance farming or feed.
- Assist Co-ops in facilitating JV's with possible investors.