The future looks bleak for the Francistown Multipurpose Consumer Cooperative Society as it struggles to attract members. At the same time the Society is grappling with a significant number of dormant member accounts.
According to the 2023/2024 Management Board Report the Society has only 63 active members out of a total of 3 956 while 3 881 are dormant and 12 are deceased.
Attracting more members to a cooperative consumer society strengthens the organization’s collective buying power, reduces costs for all members, and provides a wider range of goods and services at potentially lower prices. Increased membership also creates a stronger sense of community, enhances democratic participation, and distributes the benefits of the cooperative more widely. Cooperatives are seen as important drivers of economic growth, diversification, and development.
During an Annual General Meeting held in Francistown recently the outgoing Chairperson of Francistown Multi-purpose Consumer Cooperative Society Smarts Shabani revealed that the Society has seen a slight growth in membership and continues to see a small activation of dormant accounts following the increase in old age pension amount.
“We registered five new members and thank God that during the year under review we did not lose a member due to passing on. The dormant accounts are being relocated to Central Co-operative Fund and the exercise is under review,” said Shabani.
The Society is also struggling to construct its envisaged three storey building which it initiated in 2017. This proposed state of the art building is projected to cost around P5 million and has hitherto failed to take off due to lack of funds. However Shabani revealed that they are currently looking at reducing the planned project to a two storey building due to economic challenges be-devilling the city. The move is expected to reduce the cost of the project. The Society is currently in the process of acquiring a loan from the Citizen Enterpreneurial Development Agency(CEDA) to establish the project . He however said the requirement for the Board Members to issue their financial status to CEDA to acquire the loan remains a challenge as they are not comfortable with this requirement.
“Our consultant has not been active on the matter as well. The board has now agreed to engage the Local Enterprise Authority for the business proposal while Nawa Architects are expected to provide administrative services of the project,” he said.
Nawa Architects, a local firm has been considered by the Society to offer services of project management, bills of quantities and contractors in that regard.
On a positive note Shabani said to date, the Society has been tax complaint and there are no outstanding returns. He however said due to late submission of their Corporate Income Tax Returns caused by the delay of receipt of their audited financial statements, the society was levied P109 000.00 as penalties and interest charges.
“We however plead with the Ministry or the Department that they should negotiate for lower rates for taxation of the Co-operative Societies as this would allow more returns or benefits to the members,” added Shabani.
