Pan-African Parliament launches Model Law on Cooperatives for Africa

The Model Law is intended as a soft-law instrument that member states of the African Union can use or adapt to provide guidance to law and policy makers on the governance and operations of cooperatives, tailored to national contexts

NAIROBI, November 7, 2025 — The Pan-African Parliament officially launched the Model Law on Cooperatives for Africa during the 14th Africa Ministerial Cooperative Conference [AMCCO], which concluded recently in Nairobi, Kenya.

AMCCO, organised by the International Cooperative Alliance-Africa [ICA-Africa] in collaboration with African governments, takes place every three years to promote policy dialogue and strategic direction for the cooperative sector across the continent.

Therese Faye, Chairperson of the Pan-African Parliament Committee on Monetary and Financial Affairs, expressed her pride in collaborating with the cooperative movement in Africa during the launch. “The Model Law is intended as a soft-law instrument that member states of the African Union can use or adapt to provide guidance to law and policy makers on the governance and operations of cooperatives, tailored to national contexts,” she stated.

Since its inception in 1984, AMCCO has served as a vital platform for ministers, senior government officials, cooperative leaders, development partners, and other stakeholders to unite and strengthen Africa’s cooperative ecosystem. Hon. Faye acknowledged the extensive work that went into developing the Model Law, thanking ICA-Africa for its visionary leadership. “They recognised the importance of giving this Model Law a continental flair by strategically partnering with lawmakers across the continent, allowing cooperative actors to enhance its relevance,” she remarked.

Cooperatives are essential to Africa’s socio-economic transformation, with more than 300,000 cooperatives benefiting over 250 million individuals. They play a crucial role in job creation, food security, financial inclusion, and enhancing community resilience. Additionally, cooperatives contribute significantly to the UN Sustainable Development Goals [SDGs], the African Union’s Agenda 2063, and various national economic initiatives such as Kenya’s Bottom-Up Economic Transformation Agenda [BETA].

Despite their vital role in driving sustainable development, cooperatives face significant challenges, including weak legal frameworks, limited access to finance and markets, insufficient capacity building, poor governance, and inadequate visibility. Hon. Faye emphasised that addressing these challenges requires coordinated action at national, regional, and global levels.

In August 2023, stakeholders including members of the Pan-African Parliament, experts, civil society representatives, and key cooperative movement actors from Africa’s five regions—East, South, North, West, and Central—gathered in Nairobi to review and refine the Model Law. This consultative engagement aimed to identify gaps in the draft and gather recommendations from various stakeholders to strengthen the proposed framework.

The 14th AMCCO, hosted by the Ministry of Co-operatives and Micro, Small, and Medium Enterprises [MSMEs] Development of Kenya and ICA-Africa, aims to translate cooperative development from policy commitment into actionable initiatives.

https://thecooperator.news/model-law-on-cooperatives-for-africa-taxation-self-regulation-among-key-issues-cited/

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