Findings on the role of cooperatives in local economic development in Buffalo City Metropolitan Municipality: A participatory monitoring and evaluation approach

Abstract

Background: This article outlines the role of cooperatives in local economic development (LED) within participatory monitoring and evaluation (PM&E) approach in the Buffalo City Metropolitan Municipality (BCMM), South Africa. The Department of Trade and Industry acknowledged the inadequacy of monitoring and evaluation (M&E) of cooperatives. This lack of M&E of cooperatives’ role in LED has also affected cooperatives in BCMM.

Aim: The study sought to establish the contributory role of cooperatives in promoting LED outcomes and to determine the extent to which the PM&E was capable of capacitating cooperatives.

Setting: The study is based in East London and the target population is primary cooperatives. Primary cooperatives are defined by Buffalo City Integrated Cooperative Development Strategy (ICDS) as cooperatives that have at least five members, with an aim of providing employment to members.

Methods: The research design for the study is exploratory and inductive. The study adopted qualitative research approach that combines participatory action research (PAR) and PM&E. Two sets of data collection such as focus group interviews (FGIs) and e-mailed questionnaire (EQ) were used.

Results: It was established that cooperatives have not yet achieved their contributory role of promoting LED, specifically in terms of job creation.

Conclusion: Based on the findings it was recommended that capacity building and training with regard to M&E should not focus on conventional M&E, but rather on PM&E, where cooperatives become involved in the M&E of their business.