The Rwanda Cooperative Agency (RCA) is strengthening the managerial structure of cooperatives to improve efficiency, safeguard members, and promote integrity within the sector. The agency is also cracking down on fraud and illegal cooperatives engaging in suspicious activities, emphasising that all cooperatives must be registered and granted legal status as required by law.
These urgent changes were discussed on March 24 in Nyamirama Sector, Kayonza District, during the agency's annual campaign launch to assess cooperative operations and promote their benefits. The period also coincides with the time cooperatives hold general assembly meetings and distribute profits. According to the new law, this process must be completed before March 31 of the following year.
ALSO READ: Rwanda joins International Cooperatives Body
The campaign also highlights the importance of cooperatives in encouraging collective efforts, gains, and national development in line with the Government of Rwanda continuously supporting cooperatives to enhance member growth and contribute to the country's progress.
The event informed over 40 cooperatives, mainly from Mukarange, Karurambi, and Nyamirama sectors, about the new cooperative law in Rwanda. Published on July 8, 2024, this law replaces Law No. 024/2021 of April 27, 2021, addressing previous regulatory gaps.
These reforms, according to the agency, were to improve the management and operations of cooperatives, aiming to enhance their efficiency and positively impact both the economy and the well-being of cooperative members across all sectors.
However, despite these efforts, many cooperative members, leaders, and workers in various regions remain unaware of the reforms and the issues they seek to address. Therefore, a dedicated campaign is needed to ensure the effective implementation of the new cooperative law in Rwanda. This campaign should focus on highlighting key aspects necessary for its successful enforcement.
For instance, the new law states that cooperatives can now be established with a minimum of 10 members, except for those in the disabled category, who only need five members.
Registration and service access will be conducted through the Cooperatives Management Information System (CMIS), removing the need for physical visits to sector, district, or RCA offices.
Only RCA will issue a temporary certificate valid for 12 months and grant a permanent one based on a district-level recommendation report. These and other key changes were discussed as part of an ongoing nationwide campaign.
ALSO READ: Cooperatives Agency pushes for specialised lawyers to bolster justice in cooperative offenses
Caution on fraud, illegal operating cooperatives
Alexis Kabayiza, the Acting Director General of RCA, stated that the agency has been cracking down on illegally operating cooperatives. Since last year, there were over 10,000 cooperatives across the country. However, the number of registered and legally operating cooperatives has now been reduced to 5,621.
"This has greatly improved RCA's managerial system. The new changes will provide us with proper directives. What matters is not just having many cooperatives--while we encourage everyone to work in cooperatives, our priority is to ensure they function well, grow steadily, and bring economic benefits to their members," he said.
Kabayiza also addressed the issue of dismantled cooperatives, explaining that they were shut down because they operated against the law. The ongoing inspections and evaluations are not aimed at dismantling cooperatives but rather at identifying what is lacking for them to function properly and grow. The agency's focus is on strengthening cooperatives to ensure they remain healthy and beneficial to their members.
"For instance, we have cases where some members scammed others and disappeared with their money and shares. In collaboration with security organs, we conduct operations to bring these individuals to justice and recover the stolen money or properties. Many cases are under investigation, and some individuals have already been convicted, while others are still being processed. All these efforts aim to ensure transparency and end impunity, which negatively affects most members," he added.
ALSO READ: Govt launches probe to uncover 'ghost and dormant' cooperatives
John Bosco Nyemazi, the Mayor of Kayonza District, noted that "cooperatives are a key source of development for many members" and that "they provide clear directives for the government to support their efforts", making it crucial for individuals to operate within them as "they ensure sustainable development for all."
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
However, Nyemazi warned against individuals who take excessive ownership of cooperatives, treating them as personal property for their own benefit rather than that of the members.
"Such actions often lead to poor decision-making, which can result in bankruptcy or fraud without the knowledge of other members. This issue is common not only in Kayonza District but also across the country. Such an attitude should cease and anyone who tries to do it, will face consequences," he added.
Sylvestre Twagirayezu, a member of the "Duheshe Agaciro Umurimo" cooperative specialising in maize farming in Karurambi Sector, explains that cooperatives have been the backbone of many activities, particularly for people in rural areas, as they bring members together to learn from one another.
"Personally, being in a cooperative has helped me and my family contribute to the Ejo Heza scheme and pay for Mutuelle de Santé. The cooperative covers these costs on our behalf, and no one has ever faced any issues related to them," he said.
