African governments are working towards establishing an association of regional co-operative banks that will represent the continent’s interests in the global financial sector as well as provide credit to saccos.

The proposed organisation is expected to strengthen the co-operative movement, which has been praised for boosting socio-economic development across the continent.

Speaking during the 11th International Co-operative Alliance Africa regional assembly on Monday, leaders drawn from across the continent said there is need to consolidate resources and strengthen the ability to address financial needs of citizens.

The association is modelled around the European Association of Co-operative Banks and is expected to be in place by 2016.

“Members will register their own co-operative banks that will then form a federation. The federation will get surplus funds that it will lend to the saccos when they run out of cash,” alliance president Stanley Muchiri said.

According to the group, Kenya has the biggest co-operative movement on the continent and is ranked seventh globally.

The country has offered consultancy services and expert training to several states such as South Sudan and Zimbabwe on varied issues related to co-operatives.

Co-op Bank owns 49 per cent of the co-operative bank in south Sudan, with the other 51 per cent owned by the state on behalf of the societies in that country.

RECORDED IMMENSE GROWTH

Other countries including Nigeria, Uganda, Tanzania and Namibia have also recorded immense growth in their local movements.

International Co-operative Alliance president Dame Pauline Green said the movement holds great hope for lifting many out of poverty.

“The co-operative movement is growing hugely and there is a renaissance among the youth. This is a model that cannot be overlooked.

“Africa should intensify its quest for the co-operative model of development. We shall engage the G20 meeting that decides on global economy when they meet in Australia,” she said.