Stakeholders Review Cooperatives Societies Act 1977

The Cooperative Department in the Ministry of Trade and Industry (MTI), with support from the International Labour Organization (ILO) and the European Union, concluded the Regional Stakeholders’ Consultative Workshops on the review of the Cooperatives Societies Act 1977 on Saturday, August 9, 2025. The workshops were held in Makeni and Port Loko Districts in the North-Western region of Sierra Leone.

The events saw the participation of over 130 cooperators, including teachers, farmers, miners, and commercial motorbike riders from various cooperatives in the region. Other attendees included representatives from the Ministry of Planning and Economic Development, Civil Society Organizations, and the media.

Cooperatives have been part of Sierra Leone’s development since 1944, and the current review of the outdated 1977 Act aligns with the country’s ongoing development efforts. Participants were encouraged to actively engage in the discussions, as it was emphasized that the future of the country’s cooperative sector depended on collective input and commitment to progress.

One of the key topics discussed was the potential of agricultural cooperatives to boost rice production and support other sectors. It was noted that agricultural farmers in countries like China are among the wealthiest. Participants were reminded that cooperatives aim to foster mutual assistance, with loans attracting minimal interest rates. Additionally, the review process would also formalize other sectors such as commercial motorbike riders, miners, and farmers, providing them with the support and structure needed for growth.

Mr. Francis Jabati, the Director of Planning, Policy, and Research in the Ministry of Trade and Industry, provided an overview of the workshop’s objectives and outcomes. He shared that President Julius Maada Bio, the Minister, Deputy Minister, and the entire Ministry were committed to enacting a revised policy before the end of their term, aiming to leave a lasting legacy.

Mr. Max Kossy-Sesay, Deputy Director of Planning, Policy and Research, highlighted the need for a new framework that would formally recognize various cooperative sectors. He pointed out that Sierra Leoneans, and Africans in general, lack a culture of saving, urging that efforts should be made to introduce financial literacy programs for young people to instill the habit of saving early.

The Registrar of Cooperatives, Mr. Newton Marlin, emphasized the government’s goal of creating wealth for the people at all levels. He noted that the current legal framework for cooperatives in Sierra Leone and Liberia (enacted in 1936) is outdated and no longer meets the needs of the modern economy. He urged participants to offer their insights to help create a new Act that would stand the test of time. Mr. Marlin assured attendees that donors are ready to support the cooperative sector once the new Act is in place.

 Cooperatives were described as vital drivers of development, citing examples from countries like Canada, which has 9 million cooperators, and Ethiopia, which has 36,000. A similar series of consultations will take place in the South-East of the country to gather input before the final document is submitted to Cabinet and Parliament for approval.

The revised Cooperatives Act is expected to bring several improvements, including enhancing the socio-economic status of cooperatives, providing legal recognition for financial cooperatives (such as Credit Unions), and introducing provisions for addressing climate change, gender issues, technology, disease outbreaks, and penalties for offences.

Other areas of focus included amalgamation of cooperatives, continuous training and supervision of cooperators, decentralization of registration processes, defining membership criteria, especially for civil servants wishing to join credit unions and securing members’ contributions and creating a Central Financial Facility for cooperatives, similar to a security bond for Credit Unions.

Mr. Marlin also pointed out that the 1977 Act was designed for multipurpose cooperatives (such as agricultural co-ops) and lacked the necessary prudential and supervisory provisions for financial cooperatives like Credit Unions. He called for changes to distinguish these financial cooperatives from non-financial cooperatives, either by amending the relevant sections or creating a new dedicated schedule for them.

The workshops also focused on the need to amend registration provisions to create separate categories for financial cooperatives, with specific requirements related to minimum capital, governance bylaws, and fit-and-proper tests for officers. This would enable the Registrar and relevant banks to refuse or condition registration based on prudential criteria.

Other key areas discussed included share capital, member savings and deposits, prudential and financial requirements, governance standards, accounting, audit, and reporting.

During the Q&A session, participants highlighted that many businesses in Sierra Leone operate in the informal sector, which holds vast untapped resources. It was noted that there are over 400 agricultural cooperatives and 29 Credit Unions in the country, with the National Association of Credit Union Associations (NaCCUA) serving as the apex body for dispute resolution.

The workshop concluded with a collective call to action, urging participants to continue contributing their knowledge and insights towards the development of a revised Cooperatives Act that will promote the long-term success of cooperatives in Sierra Leone.