As the nation marks its 61st Independence anniversary, we call on Zambians to pause, reflect on where we have come from, and consider the direction we are heading.
What has prompted this reflection is the government’s decision to place its hopes on cooperatives to manage the Kikonge gold mine and restore order, as we reported in our gold rush story. In principle, this is a worthwhile approach, but only if cooperatives are managed professionally.
A cooperative and its members are like two sides of the same coin, neither can succeed without the other. A cooperative needs committed, trustworthy members to thrive, and members need a well-managed and transparent cooperative to benefit.
Yet in Zambia today, well-functioning cooperatives are hard to find.
Cooperatives are meant to be member-owned, with profits shared among the members. However, many have been quietly taken over by private interests — including influential individuals, who retain control indefinitely, sidelining ordinary members and undermining the cooperative spirit.
But many cooperatives are formed solely to access Constituency Development Funds (CDF), agricultural inputs and other government grants. As a result, they often become vehicles for mismanagement and the diversion of public resources, rather than functioning as productive enterprises.
The cooperative model is not new to Zambia. It has existed for more than 108 years, first introduced in 1914 by European settler farmers in Northern Rhodesia, and later strengthened after independence under the United National Independence Party (UNIP).
During the UNIP era, cooperatives flourished with strong government support, legislation, and institutions such as the Zambia Cooperative Federation (ZCF), the Cooperative Bank and the Cooperative College.
However, the decline began in the early 1990s following economic liberalisation under the Movement for Multi-party Democracy (MMD), when government support and control were withdrawn. Since then, most cooperatives have struggled to survive or function effectively.
Studies conducted by reputable international bodies, the International Labour Organisation (ILO) in 2009 and the International Cooperative Alliance in partnership with the European Union (ICA/EU) in 2019, both reached similar conclusions – Zambia’s cooperative movement is largely weak, poorly governed and financially unstable.
These assessments found that most cooperatives are either dormant or non-performing, lack proper leadership structures, do not hold regular annual meetings, and operate without sound financial systems. Many survive only on paper, existing mainly to access government handouts rather than to operate as sustainable, member-driven businesses.
The reports also highlighted a lack of training, limited entrepreneurial skills among members, weak regulation and little accountability.
In short, despite its long history and potential, the cooperative sector in Zambia is failing to function as a viable economic model.
That said, cooperatives remain a powerful tool for rural development, job creation and poverty reduction, but reforms are urgently needed.
The way forward
Reviving the cooperative movement requires a deliberate and well-structured reform agenda. The first step is to relaunch the cooperative model for the 21st century, rather than merely encouraging the youth to form cooperatives without addressing past failures.
Reform should be guided by existing research and a review of the 2007 National Cooperative Development Policy. Institutional capacity must be strengthened, particularly within the Department of Cooperatives in the Ministry of Small and Medium Enterprises and the ZCF, through proper funding, staffing and technical support.
Government should also draw on experienced cooperative leaders and experts to guide reforms and mentor new cooperatives. Training must be mandatory for members, leaders and employees, covering governance, financial management and cooperative principles. Without this foundation, failure is inevitable.
At the same time, politicians must stop exploiting cooperatives for personal gain. When cooperatives are used as political tools, they become instruments of manipulation rather than empowerment, trapping communities in dependency and poverty.
Sectors with the highest potential for impact, such as agriculture, clean energy, mining, tourism, finance, construction and manufacturing, should be prioritised. Unless cooperatives are restructured and managed professionally, the current rush to form youth and women cooperatives under CDF, now even to run mines, will only repeat the failures of the past.
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