This idea is not yet agreed. It is a suggested route for any group in the valley that is thinking of forming a co-operative. None of the government offices or training providers named here have been asked about it yet. It will be tabled at the Forum’s November 2026 meeting. Please do not share this page publicly yet.
What the letters in square brackets mean
Facts on this page are followed by a tag that shows where they come from.
- [IC] Independently Corroborated. Confirmed by at least two sources that do not depend on each other, or by an official record.
- [MS] Mission-Sourced. Comes from the people putting this idea forward, in their own documents or statements. It has not been checked against other sources.
- [TBV] To Be Verified. Seems likely, but nobody has confirmed it yet.
Statements without a tag are proposals. They describe what a co-operative could do.
The goal
Any group in the valley that wants to grow, make, or sell together can set up a co-operative, train its members to national standards, use the skills funds and grants open to it, and join other co-operatives to win bigger contracts.
Who this is for
This route is for any group of people in Ward 2 who want to own and run a business together. It could be growers, crafters, caterers, tour guides, a women’s group, or a youth group.
The first group likely to use it is the one behind the Valley of Grace Agri-Heritage Co-operative in Genadendal [MS]. The farming examples on this page come from that idea. Groups doing other work can follow the same steps and swap in the training and grants for their own sector.
Why this matters
- A co-operative is a business owned and run by its members, with one vote each in the model constitutions CIPC publishes [IC].
- Government pays for training through the National Skills Fund and the Sector Education and Training Authorities (SETAs), and co-operatives can apply [IC].
- Unemployed learners on some SETA-funded learnerships receive a monthly stipend [IC].
- When government buys goods and services, it may give extra points to suppliers owned by people who were disadvantaged because of their race, their gender, or a disability [IC].
- A small co-operative on its own struggles to win large contracts. The law lets co-operatives join together in a secondary co-operative, which can do business for all its members [IC].
Choosing a structure
Before registering, a group decides how it wants to be organised. There are two common structures.
| One co-operative | Smaller co-operatives that join a larger one | |
|---|---|---|
| What it means | Everyone joins the same co-operative as individual members. | Each group (for example, a women’s group or a youth group) forms its own co-operative. These co-operatives then become members of a larger one, or form a secondary co-operative together. |
| Strength | One organisation, one set of meetings and reports. | Each group keeps control of its own co-operative, its leadership, and its brand. |
| Weakness | Smaller groups inside it can be outvoted. | More organisations to run and report on. |
The second shape works under the law because a primary co-operative can have other organisations as members. It can be formed by five people, by two organisations, or by any mix of five [IC]. A group that wants to stay women-led or youth-led can use it to protect that.
The legal route
South Africa’s Co-operatives Act of 2005, as amended in 2013, sets out the levels [IC]:
- Primary co-operative. Formed by at least five people, two organisations, or a mix of five [IC]. Its purpose is to provide work or services to its members and to help develop the community [IC].
- Secondary co-operative. Formed by at least two primary co-operatives [IC]. CIPC says they should be involved in similar activities [IC].
- Tertiary co-operative. Formed by secondary co-operatives. It speaks to government, business, and others on behalf of its members [IC].
Co-operatives register with the Companies and Intellectual Property Commission (CIPC) [IC].
A primary co-operative can only help form a secondary co-operative once it is operational [IC]. CIPC defines this as a co-operative that has held its annual general meeting and sent its annual reports to the registrar [IC].
So a new co-operative would need to run for about a year before it could form or join a secondary co-operative. The course of action below uses that first year for training, grant applications, and building a record.
The suggested course of action
1. Train to national standards
How the system works
- The South African Qualifications Authority (SAQA) keeps the national register of qualifications on the National Qualifications Framework (NQF) [IC]. Anyone can check a qualification on the register.
- The Quality Council for Trades and Occupations (QCTO) and SAQA oversee who may enrol learners and which providers may deliver training [IC].
- Each economic sector has a SETA that funds training in that sector. AgriSETA covers farming [IC]. CATHSSETA covers culture, arts, tourism, hospitality, and sport [IC]. Other kinds of work have their own SETA; an accredited training provider can say which one applies.
- Older qualifications registered before 2009 are being replaced by newer occupational qualifications. In June 2026 the Minister of Higher Education and Training gave some of them extensions of six to 24 months [IC].
- The National Certificate: Mixed Farming Systems (NQF level 2, AgriSETA) is one example. The SAQA register shows learners can enrol until 30 June 2028 and must finish by 30 June 2031 [IC].
What a co-operative would do
- Choose only qualifications and skills programmes that appear on the SAQA register, and check the last date for enrolment before signing up.
- Train through a provider accredited for that qualification. Possible partners near the valley include Boland TVET College in Caledon and, for farming, the Western Cape Department of Agriculture’s training institute at Elsenburg. Neither has been asked.
- Ask the provider about recognition of prior learning, so that members who already do the work get credit for what they know.
- Keep a simple skills record for each member: what they have done, and what they still need.
2. Apply to your SETA
AgriSETA is the example here. Other SETAs run similar grant windows, and a co-operative should check its own SETA’s dates and rules.
- AgriSETA opens a discretionary grant window once a year [IC]. The window for 2027/28 ran from 1 August to 15 September 2026, and has now closed [IC].
- Co-operatives, community organisations, non-profits, and small businesses that pay no skills levy may apply [IC].
- It funds learnerships, skills programmes, bursaries, internships, and mentorship for new farmers [IC]. The mentorship support names agricultural co-operatives as beneficiaries [IC].
- Unemployed learners on a learnership receive a stipend of R3 000 a month for eight months (R24 000 in total) [IC]. Employed learners receive no stipend [IC].
- Training providers and mentors must be registered on the Central Supplier Database [IC].
What a co-operative would do. Prepare well before the next window. For AgriSETA, this is likely to open around August 2027 [TBV]. Apply together with an accredited provider. Members who are unemployed could enrol on a learnership and receive the stipend.
3. Approach the National Skills Fund
- The National Skills Fund (NSF) pays for skills training for small businesses and co-operatives [IC]. It also funds community-based skills projects [IC].
- It takes proposals in three ways: open calls advertised in the Sunday Times or City Press, closed calls to invited partners, and unsolicited proposals for new ways of training [IC].
What a co-operative would do. NSF projects are usually run by training partners, colleges, or groups of organisations. A co-operative could join a proposal led by its training partner. Several valley co-operatives, or a secondary co-operative, could put in a joint proposal. The municipality’s Economic Development office may know which NSF projects are active in the Overberg. The Forum already works with that office [MS].
4. Apply for grants and support
| Programme | What it offers | Who may apply | What to check |
|---|---|---|---|
| Comprehensive Agricultural Support Programme (CASP), Western Cape Department of Agriculture | Equipment and inputs for farming and food processing [IC]. | Subsistence, smallholder, and land reform producers, and agri-processors, in the Western Cape [IC]. Civil servants are excluded [IC]. | Farming groups only. Applications close about a year ahead: the deadline for 2025/26 support was 17 May 2024 [IC]. Ask the Overberg district office in Bredasdorp for the next dates. |
| Co-operative Incentive Scheme (CIS), Department of Small Business Development | A 90:10 matching cash grant: government pays 90%, the co-operative 10% [IC]. An older guide gives a maximum of R350 000 [TBV]. | Registered primary co-operatives with at least five members who are historically disadvantaged individuals [IC]. | Who counts as “historically disadvantaged” for this scheme [TBV]. |
| National Development Agency (NDA) | Grants to civil society organisations, including co-operatives, to reduce poverty [IC]. | Civil society organisations and co-operatives [IC]. | Which projects its Western Cape office in Cape Town funds now. |
5. Get ready for tenders
- Register on the Central Supplier Database, which organs of state use to find suppliers [IC]. Co-operatives can register [IC].
- Complete a B-BBEE sworn affidavit each year (see below).
- Ask the municipality which local tenders suit the co-operative’s work, and how to be told about them.
B-BBEE: what it means for a co-operative
This is general information. Each co-operative should confirm its own position with an accountant or a commissioner of oaths before it signs anything.
Who counts as black. In the B-BBEE Act, “black people” means Africans, Coloureds, and Indians who are South African citizens by birth or descent, or who were naturalised before 27 April 1994 (or would have qualified by then) [IC]. A co-operative’s status depends on who its members are under this definition.
Small businesses have an easy route. A business with a turnover of R10 million a year or less is an Exempted Micro Enterprise (EME) [IC]. This also applies to farming businesses under the Agricultural Sector Code (AgriBEE), published on 1 December 2017 [IC]. An EME does not need a verification agency. It proves its status with a sworn affidavit, renewed each year [IC].
| Black ownership of the EME | B-BBEE level | Buyers can count this much of what they spend with it |
|---|---|---|
| Less than 51% (including none) | Level 4 | 100% [IC] |
| 51% or more | Level 2 | 125% [IC] |
| 100% | Level 1 | 135% [IC] |
Every small co-operative is at least a Level 4 contributor, whoever its members are [IC]. A company that buys from it can count every rand of that spend on its own B-BBEE scorecard [IC].
Public tenders set their own goals. Under the Preferential Procurement Regulations of 2022, each government buyer sets its own “specific goals” and scores them in the tender [IC]. The goals can include contracting with people who were disadvantaged because of their race, their gender (women), or a disability [IC]. Tenders up to R50 million use an 80/20 points system [IC]. A co-operative can score on any goal its members meet, if the buyer has chosen that goal. Each tender must be checked.
Some grants depend on who the members are. Some government programmes are limited to people from particular groups. A co-operative should check the rules of each one before applying, starting with the Co-operative Incentive Scheme.
No fronting. Adding members, directors, or partners on paper only, to improve a B-BBEE score, is “fronting”. It has been a criminal offence since the B-BBEE Amendment Act of 2013, with prison terms of up to ten years [IC]. A co-operative should record its membership exactly as it is.
Step by step
Stage 1: Gather (the first two or three months)
- The group meets everyone who is interested. It records what each person does, where, and what training they already have.
- The group chooses its shape: one co-operative, or smaller co-operatives that join a larger one.
- The group asks its SETA, the relevant government office (for farming, the Department of Agriculture’s Overberg office), and the municipality’s Economic Development office the questions on this page.
- The group lets the Forum know, so that the idea can be listed and other groups doing similar work can find it.
Stage 2: Register (the next three months)
- At least five founding members hold a formation meeting, adopt a constitution, and elect a board.
- The co-operative registers with CIPC.
- It opens a bank account, registers on the Central Supplier Database, and completes its B-BBEE affidavit.
- It asks about the grants that fit its work.
Stage 3: Train and build a record (the first year)
- The co-operative chooses a training partner and the qualifications or skills programmes members need.
- It applies in its SETA’s next grant window, and joins or prepares an NSF proposal with its partner.
- It keeps minutes of its meetings and simple accounts from the first day, and starts selling together.
- It holds its first annual general meeting and sends its annual reports to CIPC. It is then operational.
Stage 4: Link up (after the first annual general meeting)
- The co-operative joins a secondary co-operative, or forms one with another operational primary co-operative doing similar work.
- Through the secondary co-operative, members can bid for joint tenders and larger funded projects.
Examples
- In the valley. The Valley of Grace Agri-Heritage Co-operative is a proposed primary co-operative of growers in Genadendal and the wider valley [MS]. It could be the first group to follow this route.
- Elsewhere. The Metro Women Secondary Co-operative in Gqeberha was set up in 2018 [IC]. The Industrial Development Corporation (IDC) reports that it has 65 members, most of them women over 35 who were out of work [IC]. The IDC paid for business training and mentoring for its members through Nelson Mandela University’s business school, linked to a sanitary towel factory [IC].
What the Forum would do
The Forum would not join or run any co-operative. It would:
- keep this page up to date with what each office says, so that every group gets the same information
- put groups in touch with the municipality’s Economic Development office
- help co-operatives doing similar work find each other, so they can link up
- list each co-operative in the Register once it is running
Who would benefit
- Groups of residents who want to earn a living together, through training, shared buying and selling, and access to grants and tenders.
- Unemployed members, who could earn a stipend while they train.
- Young people, if co-operatives take on learners or young members.
- Valley households and businesses, through local suppliers of goods and services.
Who would pay
Nothing has been costed yet [MS]. Each co-operative would pay for CIPC registration, its annual reports, its 10% share of any CIS grant, and any fee a secondary co-operative charges. Training could be paid for by a SETA or the NSF if applications succeed. Other money could come from members’ contributions and sales.
Who would decide
Each co-operative’s members would own it, with one vote each. They would elect a board at the annual general meeting. Which training to take, which grants to apply for, and whether to join a secondary co-operative would be their decisions. The Forum would decide only whether to adopt this page as its suggested route.
How it fits the Forum’s goal
The Forum’s long-term goal names co-operatives as one of the tools for building a BioConomy in the valley [MS]. This route sits in the economic sphere, where the guiding value is cooperation.
It serves three of the Forum’s priorities: Agriculture and Food Sovereignty, Business Development and Local Procurement, and Education and Skills.
What is still open
For the Forum:
- Whether to adopt this page as the Forum’s suggested route for new co-operatives.
- Who keeps the dates and rules on this page up to date.
- When AgriSETA’s next grant window and the next CASP deadline fall, and the dates for other SETAs.
For each group:
- Who its members are, and which shape suits it.
- Which qualifications and skills programmes its members need, and which accredited provider would deliver them.
- Whether each grant would accept all its members.
- If it would use land on the mission settlements, the Genadendal Transformasie Komitee should be asked first.
- What it would cost to register, report, and join a secondary co-operative.
What happens next
- The growers in Genadendal behind the Agri-Heritage Co-operative are asked to review this route, since they would be the first to use it.
- The route is tabled at the Forum’s November 2026 meeting.
- The moderators ask AgriSETA, the Department of Agriculture’s Overberg office, and the municipality’s Economic Development office to check the information on this page.
- The growers’ group is invited to test the route first. Other groups are welcome to use it at any time and to tell the Forum what worked.
Have your say
Contact the moderators via How to Submit, or come to the November 2026 meeting.
Related
- Ideas for the Valley
- Valley of Grace Agri-Heritage Co-operative
- Our Long-Term Goal
- Ward 2 Development Forum (W2DF)
- Economic
References
- Government of South Africa. Co-operatives Amendment Act 6 of 2013 (Government Gazette 36729, 5 August 2013). Definitions of primary, secondary, and tertiary co-operatives.
- Companies and Intellectual Property Commission (CIPC). Co-operative registration. Membership rules for each level, and the meaning of “operational”.
- Companies and Intellectual Property Commission (CIPC). Model constitution for an agricultural primary co-operative. One vote per member.
- AgriSETA. Discretionary Grant Window, FY 2027/2028. Application dates, who may apply, programmes funded, and learner stipends.
- South African Qualifications Authority (SAQA). National Certificate: Mixed Farming Systems, SAQA ID 48977. NQF level, and last dates for enrolment and achievement.
- SAnews. Government announces transitional arrangements to advance modern occupational qualifications (11 June 2026). Extensions for older qualifications, and the roles of SAQA and the QCTO.
- CATHSSETA. Home page. The SETA for culture, arts, tourism, hospitality, and sport.
- National Skills Fund (NSF). Home page. Funding for co-operative skills training and how proposals are made.
- Western Cape Department of Agriculture. Application for CASP funding 2025/2026. Who qualifies, what it funds, and the closing date.
- South African Government. Co-operative Incentive Scheme (CIS). Grant ratio and who qualifies.
- SME South Africa. All your Co-operatives Incentive Scheme FAQs answered (updated 11 November 2014). Maximum grant amount, which may have changed.
- National Development Agency (NDA). Home page and Provincial office contact details. Mandate, and the Western Cape office.
- Department of Trade, Industry and Competition (dtic). White people, foreign nationals, permanent residents do not qualify for a benefit under the B-BBEE Act (14 October 2021). The Act’s definition of black people.
- Pioneer Consulting. Exempted Micro Enterprises. EME threshold, levels, procurement recognition, and the sworn affidavit.
- Tusker. Agriculture sector code. AgriBEE thresholds and gazette date.
- Farmer’s Weekly. AgriBEE codes update (14 March 2016). EME threshold for farming businesses.
- National Treasury. Implementation Guide: Preferential Procurement Regulations, 2022 (March 2023). Specific goals and the 80/20 threshold.
- National Treasury. Central Supplier Database: supplier fact sheet. Co-operatives as a supplier type.
- Schindlers Attorneys. B-BBEE fronting. Fronting as an offence under the Amendment Act of 2013, and penalties.
- Industrial Development Corporation (IDC). Empowering women in the community for sustainable success (15 September 2021). The Metro Women Secondary Co-operative.