Pan-African Parliament Drives Consultations for Draft Model Law on Cooperatives in Africa

The Pan-African Parliament (PAP) is currently spearheading consultations for the Draft Model Law on Cooperatives in Africa. This significant undertaking, slated for August 29th and 30th, 2023 in Nairobi, Kenya, assembles a diverse array of participants including PAP MPs from the Committee, representatives from Regional and National Parliaments, Regional Economic Communities (RECs), the African Union Commission, the International Cooperative Alliance – Africa (ICA-A), and strategic partners such as the African Union Economic Social and Cultural Council (ECOSOCC) and Civil Society.

Central to these discussions is the exploration of effective strategies using available tools and legislative mechanisms to shape this adaptive legal framework. Following these consultations, the committee will amalgamate insights and present a harmonized draft for comprehensive assessment and ultimate approval within the Plenary. The proposed model law resonates with the African Union’s vision, recognizing cooperatives as pivotal, democratically-owned entities that foster social cohesion and actively combat poverty. The envisioned Model Law is poised to be adopted by African Union (AU) member states, effectively influencing cooperative governance and operational paradigms.

Origins and Development

The genesis of the Model Law can be traced back to a request from the International Cooperative Alliance in 2020, after the benefits and key elements of the Model Law were presented to the PAP Permanent Committee on Monetary and Financial Affairs by the Regional Director, Dr. Sifa Chingoye, during the March Sittings of the Permanent Committees.

The proposal was presented again after the revival of the continental parliament in 2022, and was formally endorsed during the November 2022 First Ordinary Session of the PAP’s sixth Parliament. This endorsement conferred the Committee on Monetary and Financial Affairs, chaired by Hon. Mohammed Mubarak Munthaka, with the responsibility of leading the formulation of the Model Law on Cooperatives.

Collaboratively with ICA-A, the Pan-African Parliament meticulously constructed a policy paper, serving as the cornerstone for the Model Law’s development. Notably, the inaugural reading of the Draft Model Law transpired during the 2nd Ordinary Session of the Sixth Parliament in June 2023.

This ambitious endeavor adheres to the well-structured guidelines set by the Pan-African Parliament, delineating the stages of initiation, formulation, and adoption. The Formulation Stage witnessed the creation of the policy paper and the subsequent drafting of the law, culminating in its endorsement by the Permanent Committee. The culmination of this process involves the Plenary’s thorough assessment and ensuing consultations, setting the stage for the Model Law’s formal adoption. The overarching goal of the Nairobi consultations is to actively engage regional stakeholders, crafting a draft Model Law that seamlessly integrates the perspectives of African stakeholders and parties with vested interests.