Unique features of agricultural cooperatives in sub-Saharan Africa
- Authors
- Nicola Francesconi, Fleur Wouterse, Michael L. Cook, Gashaw T. Abate
- Publication year
- 2023
Agricultural cooperatives and other farmer-owned organizations are widespread across
sub-Saharan Africa. The scant available data suggests that every other rural village in Africa houses a cooperative organization of some sort. The literature suggests that when farm-households join these organizations, they derive benefits from mutual support—for weeding, harvesting, and other labor-intensive activities, but also financing funerals, weddings, medical treatments, and so on—and they also gain access to subsidized agricultural inputs and services provided by the government and non-governmental agencies. These benefits are attributable to the social capital enhancing effect of cooperatives, and translate into significantly more efficient farms and more resilient houselholds.
The role played by agricultural cooperatives in sub-Saharan Africa appears to be different
from that played by similar organizations operating in Europe and North America. In particular, agricultural cooperatives serve a more commercial or market-oriented function within
Europe and the United States compared to those in countries below the Sahara.
Despite the unique challenges faced by sub-Saharan cooperatives, governments and donors
have systematically used subsidies and aid to shape the governance structure of these cooperatives on the basis of off-the-shelf models from other parts of the world . Therefore, alternative and more suitable models are necessary to unleash the income and employment generating potential of cooperatives in sub-Saharan Africa.