ZCF bemoans mushrooming cooperatives

…….As it encourages youths to use their fund on existing businesses

ZAMBIA Cooperative Federation (ZCF) says it's concerned with the mushrooming of cooperatives that are being formed because they have been told to do so without proper guidance.

ZCF director general, James Chirwa said for a cooperative to succeed it should stem from self-motivation and not a foretold arrangement.

Mr. Chirwa said a coorperative should be formed with the aim of engaging in business that would address the challenges faced by the community.

Speaking on ZNBC Mr. Chirwa said when people create a cooperative because they have been told so, there is a 99 percent likelihood of failure because the basis for its formation is not well-founded.

“What is worrying us from the ZCF point of view is the mushrooming of cooperatives that are being formed because someone has told them to do so, the formation of cooperatives is self-motivated and not a foretold arrangement. You have to see the need to form it,” he said.

He advised that the only way to utilise the youth empowerment released by the government is to continue with the already established businesses and not new ones.

Mr. Chirwa said by doing so, the youth empowerment fund would be a success as the youth would be able to upgrade their businesses into formal businesses that would create employment and grow the economy.

He warned that setting up new businesses using the fund has a high rate of failure hence the need to focus on the businesses that are already established.

“When we talk about the fund like the one they have created, the only best way to do it is to focus on people are already doing something, let's not start to do new things, encourage people to do what they are doing already but do it in a group,” he said.

Mr. Chirwa has urged all those interested to form cooperatives to engage the ZCF to provide mentorship and capacity building.