CBS and Financing Negotiation by Smallholder Cooperatives in West and Centre Africa

Abstract of a presentation given at the recent ABIVCD working group meeting

Cooperative Business School (CBS), a training approach promoted by GIZ/SSAB, allows smallholders cooperatives to initiate business services. Through this approach, cooperatives and their members learn how to develop business models and business plans.

This allowed cooperatives and its members to negotiate financing through the available resources (contributions of the members, credits of MFI and banking institutions, etc.).

  • A cooperative that implements an activity or service following a transparent and well-designed business model and plan is taken seriously internally and externally
  • In case of credits and bank loans, this constitutes one of the guarantees for better repayment

Through CBS the cooperative members learn to:

  • Improve their financial management and accounting;
  • Develop documents (operating account, annual budget, projected finance, etc.) required by financing institutions.
  • Thus, CBS is a way to familiarize the cooperative members in these necessary tools for controlling and mobilization of working capital and loans.

An activity or service can be (re-)financed by the cooperative’s self-generated funds (internal working capital) because the leaders have understood the necessity of setting up a plan even a strategy of refinancing. It is exactly one of the steps developed by CBS.

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In certain conditions and in certain countries, cooperatives recognized by competent authorities are indicated to operate financial activities. These legal entities facilitate credits to their members through their official recognition. They have the necessary guarantee.

Other cooperatives manage internal microfinance structures to financially support their members. They manage to exercise such activities because they are legally recognized. CBS teaches this through the formal frame of cooperative societies fixed by OHADA (Organization for the Harmonization of Business Law in Africa).

2018-05-16T16:49:50+00:00 May 15th, 2018|Categories: ABIVCD, Updates|