Are Cooperatives Fit for Purpose in Accelerating a Sustainable Transition in Africa?

The CoopStar initiative, and other reflections from the BRS Microfinance Lunch Break

Author: Bart Speelman, BRS.

In the third in a new blog series to celebrate the International Year of Cooperatives, Bart Speelman from BRS presents selected insights from the recent Microfinance Lunch Break event in March, part of BRS’ own work for the International Year of Cooperatives, including updates to the pan-African CoopStar project.

Celebrating the International Year of Cooperatives in 2025, BRS hosted a special edition of its Microfinance Lunch Break series on March 26th. The event brought together leading voices in cooperative development to explore a critical question: Are cooperatives fit for purpose in accelerating a sustainable transition in Africa?

The session featured Professor Patrick Develtere of the University of Leuven, a renowned scholar on international cooperation, and Joseph Njuguna, Director of Policy at the International Cooperative Alliance (ICA). Together, they offered a compelling portrait of how African cooperatives are not only evolving but increasingly pivotal to achieving the Sustainable Development Goals (SDGs).

Defining the Cooperative Identity

The discussion began with a fundamental question: What is a cooperative? The speakers defined cooperatives as autonomous associations of people who voluntarily unite to meet common economic, social, and cultural needs through a jointly owned and democratically governed enterprise. This definition, rooted in values of self-help, democracy, equality, and solidarity, is what gives cooperatives their unique identity.

Professor Develtere revisited themes from the landmark 2008 study “Cooperating Out of Poverty: The Renaissance of the African Cooperative Movement,” highlighting how cooperatives have historically empowered communities to drive their own development. Joseph Njuguna emphasized that cooperatives are not just economic units; they are people-centered organizations that foster local resilience and inclusive participation.

The CoopStar Study: Updating the African Cooperative Narrative

Central to the event was the presentation of preliminary insights from the ongoing CoopStar project (Cooperatives for Sustainable Transformation in Africa), a comprehensive update to the earlier research. Covering 20 African countries, this ambitious study is assessing how cooperatives can support the transition to a green, circular, and sustainable economy, particularly in light of climate change, economic inequality, and growing development pressures.

Key Highlights from CoopStar

• Explosive Growth: Africa is home to an estimated 500,000 to 600,000 active cooperatives with over 100 million members, representing roughly 14% of the continent’s population. This makes cooperatives a potentially transformative force across multiple sectors.

• Diversifying Sectors: Traditionally strong in agriculture and financial services, cooperatives are now branching into healthcare (Uganda), ecotourism and transport (Cabo Verde and Rwanda), mining (DR Congo), housing (Senegal), manufacturing (Morocco and Egypt), and waste management (South Africa).

• Kenya’s Example: Kenya stands out for its dynamic cooperative ecosystem, supported by a dedicated government ministry, the Cooperative University of Kenya, and digital tools such as M-Pesa. Cooperatives in Kenya contribute a remarkable 30–35% to national GDP.

• Innovation in Senegal: The U-IMCEC cooperative in Senegal connects rural communities with agricultural producers, and its agrifinance unit is actively promoting sustainable practices like reducing pesticide use and improving water efficiency.

The Evolving Landscape: Strengths and Challenges

The presenters were clear-eyed about both the promise and limitations of cooperatives on the continent. The CoopStar study sheds light on several trends shaping the movement today:

• Enabling Environments and Legal Reforms

  Many African countries are modernizing their legal frameworks to support cooperative growth. These reforms enhance transparency, governance, and accountability, enabling cooperatives to scale their impact.

• A New Generation of Leaders

  A wave of young, dynamic, and increasingly female leadership is revitalizing the cooperative sector. These leaders bring entrepreneurial energy and innovation to traditionally conservative institutions.

• Towards Self-Reliance

  One of the most striking findings is the rise of self-financing cooperatives, which are increasingly using local resources and community investment rather than relying on government subsidies or foreign aid.

• Cross-Sectoral collaboration

  There is a notable uptick in cooperation among cooperatives and partnerships with other social economy actors. This interconnectivity is helping build ecosystems that are capable of tackling complex social and environmental issues.

 

Sustainability: From Buzzword to Practice

Sustainability was the cornerstone of the event. African cooperatives are increasingly aligning their missions with environmental stewardship, economic inclusion, and community resilience. The shift from rhetoric to action is visible across sectors:

• Climate Change Mitigation: Cooperatives are implementing reforestation projects, promoting climate-smart agriculture, and introducing drought-resistant crop varieties.

• Circular Economy Models: Waste management cooperatives are pioneering new ways to handle recycling and composting, reducing pollution and generating employment.

• Digital Innovation: Ghana’s Asusu cooperative software is an example of how digital platforms are supporting cooperative governance and service delivery.

• Self-Critique and Accountability: Cooperatives are increasingly aware of their own environmental footprints and are adopting internal reforms to reduce harm and model sustainable practices.

Building Political Influence

Despite their achievements, cooperatives still struggle to gain political visibility. As Professor Develtere noted, while they are increasingly vocal, cooperatives are not yet at the center of policymaking discussions. Joseph Njuguna emphasized the importance of grassroots mobilization to influence policy from the bottom up, ensuring that cooperative priorities are reflected in national and regional development plans.

What’s Next? From Research to Action

The final part of the webinar looked toward the future. Once the full CoopStar study is published in summer 2025, the findings will inform a series of national dialogues in participating countries. These forums will engage cooperative members, government stakeholders, and civil society in shaping the role of cooperatives in sustainability transitions.

A broader international debate is also planned, advocating for policies that reflect cooperative realities and scale up successful models across the continent.

BRS's Commitment and Upcoming Events

As a key actor in the cooperative microfinance landscape, BRS is actively supporting these conversations. With strong partnerships in Senegal and Uganda, BRS is facilitating exchanges of knowledge and innovation between cooperatives in Africa and Europe.

In October, these themes will take center stage at the African Microfinance Week in Nairobi, where BRS’s partners will present their experiences. Later, at e-MFP’s annual event in November in Luxembourg, the dialogue will continue, ensuring that the momentum around cooperatives and sustainability is sustained throughout the International Year of Cooperatives.

Conclusion: Cooperatives Doing Together What They Can’t Do Alone

Echoing Friedrich Wilhelm Raiffeisen’s timeless maxim — “Let’s do together what we are too small to do alone” — the webinar made it clear that cooperatives are not just fit for purpose, but essential to Africa’s sustainable future. They represent a people-powered model of development that is local, inclusive, and adaptive.

In a time of global uncertainty, the cooperative movement is showing that grassroots action, democratic governance, and shared ownership can be powerful tools for navigating the challenges of climate change, inequality, and economic resilience.

As the CoopStar study gains traction and national dialogues unfold, the cooperative movement in Africa stands ready to be a cornerstone of transformation — by the people, for the people.

About the Author:

Bart Speelman is program co-ordinator agri-finance at BRS.  He is following up on the cooperation, coaching and advice of BRS-volunteers from KBC Bank in Belgium with BRS’s MFI-partners in Senegal, Ethiopia, Guinee and Burkina Faso. 

In his role he also co-ordinates inspirational agrifinance workshops where BRS brings together Microfinance Institutions, Impact Investors and Providers of Technical Assistance to MFI’s and Farmers Organisations to share experiences with one another, learn from each other and to actively engage with customers in the field. Prior to this, he worked as a project and program co-ordinator at KBC Bank for 20 years during which he also was volunteering for BRS and he started his career setting up savings and credit cooperatives when working for Trias in Tanzania.