To flourish cooperatives need a supportive legal and policy framework. CoopAfrica aims to support national cooperative movements and governments to create an enabling environment for cooperative development. By helping develop and put in place appropriate cooperative development policies and laws CoopAfrica is seeking to strengthen national systems of independent and autonomous cooperatives. Economically viable cooperatives which are well protected in a supportive legal and policy framework are better placed to improve the lives not only of their members but of the whole society.

Many of the laws under which cooperatives are administered globally and in Africa especially, have been in place for several decades. In many cases cooperative policies and laws have not been properly aligned with related legislation, such as land, agriculture, labour, finance and administration. This alignment is critical if policy and lawmakers are to ensure that cooperatives are able to provide maximum growth and income generating opportunities for their members. In many instances related policy and legislation need only be amended in order to harmonize them with cooperative principles, in others complete overhauls of the legislative and regulatory frameworks are necessary. This harmonization process is particularly important in Africa where the resurgence of the cooperative movement is poised to have a dramatic impact on growth and development.

Some African countries have not yet developed appropriate cooperative policies and legislation which fit with their specific cooperative situation. CoopAfrica is supporting national initiatives by providing expert advice and funding for developing cooperative specific legal and policy regimes. CoopAfrica is especially seeking to support the introduction of appropriate frameworks that recognize cooperatives as sector players with independent member control. The CoopAfrica activities are based on and fully consistent with the universal cooperative principles and the ILO Recommendation 193.

Cooperative Principles

Cooperatives need to adopt 7 principles:
• 1st Principle: Voluntary and Open Membership
  Cooperatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
• 2nd Principle: Democratic Member Control
  Cooperatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organised in a democratic manner.
• 3rd Principle: Member Economic Participation
  Members contribute equitably to, and democratically control the capital of their co-operative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
• 4th Principle: Autonomy and Independence
  Cooperatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
• 5th Principle: Education, Training and Information
  Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.
• 6th Principle: Co-operation among Cooperatives
  Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
• 7th Principle: Concern for Community
  Cooperatives work for the sustainable development of their communities through policies approved by their members.

Legal and Policy support
The CoopAfrica Programme commenced activities in the advancement of legal and policy improvements by organizing a Regional Seminar on Cooperative Policy and Law in Africa in Swaziland in June 2008. This  high-level meeting was attended by 47 chief executive officers of national cooperative federations, heads of government authorities responsible for cooperative promotion and heads of cooperative training institutions from 16 African countries.

Since the meeting significant progress has been made towards adoption of an enabling environment for cooperatives, in terms of institutional settings, policies and laws, as shown by the following positive developments: