BACKGROUND. The concept and philosophy of co‐operatives is deeply embedded in the traditional culture of many human societies, especially within African communities. There are many examples where members of communities work together in turns for mutual self‐help to improve the socio‐economic welfare of each other and the community. Modern economic and social structures may have weakened this co‐operative social fabric but it is an important foundation upon which the concept and philosophy of modern co‐operatives as economic enterprises can be successfully built and sustained. The democratic Government of the Republic of South Africa has put in place many development programs to address the urgent need to eradicate poverty in a sustainable manner through support to development of enterprises that create employment, increase household incomes, mobilize savings, and improve the welfare of the people. These include, but are not limited to, small, medium and micro‐enterprises (SMMEs), Broad‐Based Black Economic Empowerment (BBBEE), and co‐ operatives. In KZN Co‐operatives Development Programme started in February 2005 and has since attracted more than 60 000 individuals, who constitute approximately six thousand co‐operatives. The program is also receiving support from government departments, municipalities and the private sector by awarding contracts to some co‐operatives using their affirmative procurement policies and social responsibility/investment programmes. The previously disadvantaged communities now own co‐operative businesses and are being enabled through the programme to participate in the mainstream economy of the province. Further, a draft KZN co‐op strategy has been developed to assist in the provision of support for co‐ operative development in the province. The overall aim of the draft strategy is to adopt a regulatory approach in the KZN Province, wherein all stakeholders can add value and support the development of social enterprises in the form of co‐operatives. Worth noting is that the draft strategy attributes the coordination of all co‐oparative activities and value chain in the province to provincial Departement of Economic Development and Tourism while the implementation of all programmes is devolved to the local governments through the formulation of their own strategies and implementation mechanisms. The eThekwini Municipality embarked since 2001 on a programme aimed at alleviating poverty and unemployment and identified procurement as priority i...
