Agricultural Cooperative Development

Early-stage social enterprises can transition from dependency on stipends to sustainable agribusinesses when entrepreneurship training is paired with structured coaching and infrastructure support.

In 2015 we supported a Cooperative within the national Community Work Programme (CWP) in Lawley, Gauteng Province. The intervention combined SETA-accredited entrepreneurship training with intensive business coaching and food garden infrastructure installation. The project aimed to catalyse the cooperative’s transformation from a stipend-dependent work team into a viable micro-enterprise producing consistent agricultural outputs.

• Objectives: Increase cooperative productivity, strengthen organizational structure, and generate pathways toward market-driven sustainability.
• Theory of Change: By equipping participants with entrepreneurial and operational skills, resolving infrastructure bottlenecks, and realigning team culture, the cooperative can shift from reliance on government stipends to value-creating agribusiness, sustaining jobs and livelihoods in Lawley.

Delivery and Reach:

1. Accredited Training Modules delivered:
   • Operations (Unit Standard 119668)
   • Marketing (Unit Standard 119672)
   • Finance (Unit Standard 119674)
2. Business Coaching: Regular in-person sessions focusing on productivity, governance, and team culture.
3. Infrastructure Intervention: 5 low-cost tunnels with irrigation pilot installed on 60m x 60m plot adjacent to Lawley Fire Station.

Beneficiaries:

1. Province: Gauteng, Region G and Lawley
2. Sectors: Agriculture (small-scale agriculture).
3. Target Group: CWP workers, cooperative members in low-income township/rural-urban fringe.
4. Number of learners: 16
5. Number of Dropouts: 5
6. Number of Males: 7
7. Number of Females: 4

Results and Impact:

Key achievements include:

1. Accredited training: participants were trained in entrepreneurship skills including finance, operations and marketing.
2. Financial Projections: scenario forecasts developed for garden outputs.
3. Branding: developed a brand and provided signage (logo, banners and direction boards).
4. Operational Improvements: timekeeping, productivity, and quality control practices.
5. Infrastructure: installation of 5 tunnels with customized irrigation system.

Economic Outcomes:

1. Ventures: the cooperative was an existing entity, we improved productivity, planning, branding and infrastructure to increase survival prospects.
2. Jobs and income: reduced dependency on stipends by introducing income opportunities through fresh produce sales.
3. Access to Finance: improved planning and compliance for a fundraising target for additional tunnels and irrigation.

Risks, Mitigations, and Lessons

1. Low Team Commitment → Mitigation: Team-building activities; residual risk persists.
2. Weak Infrastructure (no electricity/irrigation) → Mitigation: custom tunnels; needs scale-up investment.
3. Over-reliance on CWP stipends → Mitigation: Cooperative restructuring; fresh produce sales introduced.
4. Restricted Market Access → Partial mitigation via branding and signage; sales channels still undeveloped.

SDG Alignment

1. SDG 1 (No Poverty): CWP stipends as safety net; transition to enterprise for sustainable livelihoods.
2. SDG 8 (Decent Work & Economic Growth): Focus on productivity, coaching, and small enterprise survival.
3. SDG 12 (Responsible Consumption & Production): Local small-scale agriculture promoted.

“Through our interventions we have placed a large emphasis on improving the current situation through team building activities.”

The Cooperative began as a group subsisting on CWP stipends, with little incentive to generate market-driven income. Our interventions reshaped their trajectory. By reallocating part of the Lawley Fire Station plot, installing five low-cost tunnels, and developing customized irrigation, Ubuntu catalysed a mindset shift. Members gained skills in finance, operations and marketing, while branding and signage established a visible presence. Although no new jobs were created, the cooperative now demonstrates improved productivity, cohesion, and readiness for fundraising.

External Context:

1. Stats SA Quarterly Labour Force Survey (QLFS): Contextualize township/rural unemployment.
   https://www.statssa.gov.za/?page_id=7374
2. GEM South Africa Report: Entrepreneurial ecosystem strengths/constraints among low-income entrepreneurs.
   https://www.gemconsortium.org
3. National Treasury SME Finance Report: Funding barriers for smallholders and coops.
   https://www.treasury.gov.za
4. SEDA Annual Review: Support landscape for township agriculture coops.
   https://seda.org.za
5. ILO “Decent Work in the Rural Economy” (SA focus): How stipends/short-term work intersect with enterprise creation.
   https://www.ilo.org