Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development Wycliffe Oparanya has urged cooperatives to embrace merging to remain sustainable.
In a statement on Wednesday, November 20, 2024, Oparanya indicated that the financial landscape was fast changing and cooperative leaders needed to morph to save their ventures from crumbling.
Oparanya argued that mergers present an opportunity for cooperatives to pool resources and achieve their economies of scale.
“Dear Cooperators, the financial landscape is evolving rapidly, and cooperatives must adapt to remain sustainable,” Oparanya’s message read in part.
“Mergers offer an effective solution, enabling cooperatives to pool resources, enhance operational efficiencies, and achieve economies of scale,” he added.
More returns
At the same time, the CS maintained that mergers would help some of the cooperative members gain more returns and save them from collapsing.
“By joining forces, cooperatives can deliver better services, expand their competitive advantage, and provide greater returns to their members,” he appealed to cooperators.
His sentiments come after some cooperatives recorded massive exits and withdrawals from the members over the fear of shutting down. This has left most cooperatives in financial holes and debt burden.
Besides, merging, CS Oparanya has also urged cooperatives to adopt responsible borrowing measures. This, he made it clear would save them from sinking into debt traps and thus avoid being declared bankrupt.
“While financial sustainability is vital, the cooperative principle of service to members must always take precedence. Let us uphold these values by promoting responsible borrowing and ensuring financial discipline among members.”
As we reflect on the milestones achieved, I urge all stakeholders to align their strategies with the emerging policies and legislative frameworks, including the anticipated enactment of the Cooperatives, Coffee, and Sacco Societies (Amendment) Bills.
— Hon Wycliffe A. Oparanya, EGH (@DrOparanya) November 20, 2024
Together, we can ensure that… pic.twitter.com/grkIYuatRS
