1. European Economic and Social Committee
REX/302
Social Economy in Africa
Brussels, 15 July 2010
OPINION
of the
European Economic and Social Committee
on
What role and perspectives for Africa's social economy in development cooperation?
(Own-initiative opinion)
_____________
Rapporteur: Mr Jahier
_____________
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Rue Belliard/Belliardstraat 99 — 1040 Bruxelles/Brussel — BELGIQUE/BELGIË
Tel. +32 25469011 — Fax +32 25134893 — Internet: http://www.eesc.europa.eu
EN

2. -1-
On 17 December 2009, the European Economic and Social Committee, acting under Rule 29(2) of its
Rules of Procedure, decided to draw up an own-initiative opinion on
What role and perspectives for Africa's social economy in development cooperation?
The Section for External Relations, which was responsible for preparing the Committee's work on the
subject, adopted its opinion on 17 June 2010.
At its 464th plenary session, held on 14-15 July 2010 (meeting of 15 July 2010), the European
Economic and Social Committee adopted the following opinion by116 votes for, none against, and
one abstention.
*
* *
1. Conclusions and recommendations
1.1 The social economy is a major, world-wide phenomenon which is distinguished by its capacity
for innovation, dynamism, flexibility and resilience, including in severe crises, and by its
ability to include all population groups, particularly the poorest and most marginalised, in all
societies. Very highly-regarded sources estimate that the social economy accounts for 10% of
the world's working population1 and is growing in all areas of the world. Its characteristics and
special dynamism distinguish it from other kinds of economy, but, at the same time, make it
fully complementary to and, at times, even synergic with other forms of enterprise.
1.2 In Africa, the social economy is a sector which has thus far to a large extent been neglected by
the international community, including the European Union. Its specific situation is not
recognised and so it is not actively involved in decision-making and consultation policies and
processes. Nevertheless, in Africa it is a deep-rooted part of traditional systems of mutual
support and collective and community enterprise, which often become cooperative enterprise or
the most varied forms of mutual enterprise. Moreover, many of its structures are a vital part of
that huge sector known as the informal economy.
1.3 In a continent in which between 80 and 95% of the population are employed in the informal
sector, the social economy can play a decisive role in gradual development and transformation
of this standard of living and work, to bring it into line with high standards of dignity and
social protection which will enable these players to operate on the market and make a decisive
contribution to Africa's social and economic development.
1
Preparatory document for the Johannesburg ILO Conference, 19-21 October, referred to in Appendix 3.
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1.4 In the current context of the aftermath of the economic crisis, the social economy's innovative
nature and the major contribution that it can make to local development have been officially
recognised by the ILO, which held the first Conference on the Social Economy in
Johannesburg on 19-21 October 2009, where it adopted a major Plan of Action. The resilience
displayed by the social economy, particularly cooperative enterprises, during the crisis
prompted the World Bank and the IMF to show fresh interest in the social economy.
1.5 It is therefore in interests of the EU, as primary world donor, to get involved in this
international initiative. A good opportunity would be the United Nations International Year of
Cooperatives, scheduled for 2012.
The EESC proposes the following avenues for promoting the African social economy in
development cooperation:
 ensuring formal recognition by the EU of the role and contribution of the social economy
to Africa's development;
 including the social economy in the list of non-state actors of the Cotonou Agreement to be
involved in the implementation of the Agreement;
 doubling the funding for non-state actors in the Country and Regional Strategy Papers;
 ensuring that non-state actors, including the African social economy, are included in future
EU relations with ACP countries in the post–2020 period;
 integrating the social economy into the EU-Africa Partnership and notably, the 7th
Partnership on Migration, Mobility and Employment;
 including African cooperatives in the EU's policies on agricultural and rural development
cooperation in Africa;
 supporting the African social economy through the EU's Thematic Programmes: Investing
in People, and Non-State Actors and Local Authorities in Development;
 encouraging the creation and strengthening of networks of social economy actors (north-
south and south-south);
 promoting education, training, cultural cooperation and gender equality in EU programmes
and policies;
 recognising the contribution of the social economy to creation of decent jobs in Africa and
reflecting this role in EU cooperation policies;
 including the social economy in the 2010 European Report on Development, which will
address social protection;
 encouraging an enabling environment for the social economy to operate, including the
appropriate legal framework, capacity-building, access to financing and networking;
 promoting European intra-institutional cooperation on the promotion of the social
economy;
 including the social economy in existing Commission-ILO strategic partnerships.
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In line with these recommendations, the EESC undertakes to actively involve operators in the
African social economy in its activities, particularly in the ACP-EU Follow-up Committee.
2. Situation and size of the social economy in Africa
2.1 The social economy is made up of all those "enterprises and organisations, in particular
cooperatives, mutual benefit societies, associations, foundations and social enterprises, which
have the specific feature of producing goods, services and knowledge while pursuing both
economic and social aims and fostering solidarity”2. Thus defined, the social economy is a
significant economic sector, in both Europe and other continents, starting with Africa.
2.2 Given that it is a very inclusive concept, which focuses on the common features of different
organisations and businesses, it is, in practice, impossible to quantify exactly the current spread
and size in numerical terms of the social economy in individual African countries or in Africa
as a whole. However, it is possible to outline the features of the various types of organisations
and businesses making up Africa's social economy.
2.3 Traditionally, one of the fundamental components of the social economy has been
cooperatives, defined by the ILO (R193, 2002) as "an autonomous association of persons
united voluntarily to meet their common economic, social and cultural needs and aspirations
through a jointly owned and democratically controlled enterprise". In Africa, cooperatives were
"imported" by colonial authorities, becoming, as countries claimed their independence, one of
the continent's main forms of economic and social organisation (Develtere, Pollet & Wanyama,
2009). In the majority of cases, however, the new independent governments forged very close
links with the cooperatives, which were used to raise support and control in various social and
economic contexts. Only with the liberalisation of the 1990s were African cooperatives able to
move away from the excessively dependent relationship with the state which had marked their
history thus far, regaining the autonomy, voluntary nature and internal democracy which are
distinctive features of the cooperative model and thereby entering a new phase of renaissance
and expansion.
2.4 Over the past 15 years the cooperative model has become much more widespread and popular.
3
As shown by Develtere, Pollet & Wanyama (2009) , analysing the data of 11 African countries,
in several cases (Kenya, Ghana and Senegal, to name but a few) the number of active
cooperatives has more than doubled compared to 1989-1992, to make up a very substantial part
of the national economy.
2.5 The majority of African cooperatives are client-owned and operate in the agricultural sector,
but they are also very widespread in the credit sector: according to WOCCU, in 2007 there
2
See Article 1 of the Preamble to the Plan of action for the promotion of social economy enterprises and organisations in Africa,
drawn up at the ILO Regional Conference on The Social Economy - Africa’s Response to the Global Crisis, Johannesburg,
19-21 October 2009. See, also, the diagram in Appendix 2.
3
Op. cit., Appendix 3.
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were 12 000 credit unions, with over 15 million members across 23 countries and around
USD 3.5 billion of savings (Fonteneau & Develtere, 2009), forming the lynchpin of
microfinance institutions in many African regions. Cooperatives are also active in the
construction, insurance and distribution sectors. An estimated 7% of the African population
currently belong to a cooperative.
2.6 Mutual benefit societies are basically intended to provide welfare services for their members
and members' families, sharing risks and resources and operating in the social protection sector,
focusing particularly on all aspects of health and health services. These societies are of
considerable size and impact: an estimated 500 or more mutual benefit societies operate in
West Africa, reaching some hundreds of thousands of people. In Rwanda, since 2003 the
Ministry of Health has incorporated this kind of society into its strategy for expanding access to
health services, in view of the fact that, according to the Ministry's data, 75% of the population
belong to at least one. It is not just the health sector which is concerned, however. Here, too,
organisations and/or businesses similar to mutual benefit societies operate in other sectors as
well. This applies to the tontines in French-speaking Africa, and, as regards the credit sector,
credit unions in English-speaking Africa and the funeral societies which provide funeral
services in various countries, including Ethiopia and South Africa.
2.7 For the first time, in Africa, the UEMOA Council of Ministers adopted on 26 June 2009 a
Regulation (No. 07/2009) on mutual benefit societies. The basic values distinguishing the
"mutual benefit" principles are thereby identified and recognised: transparency, social
responsibility, democracy, equality, fairness and mutual support. These principles also define
other characteristics specific to mutual societies, in particular membership on a voluntary, non-
discriminatory basis; non-profit aim; democratic, participatory running of the institution; high
level of mutual support; autonomy and independence; voluntary work of the management
board; responsible participation.
2.8 Another very numerous group in Africa, present in all possible rural and urban sectors, is that
of associations, which include voluntary organisations, community-based organisations, non-
profit organisations and non-governmental organisations (NGOs) and so forth. The number of
associations connected with the social economy rocketed with the democratisation processes in
the 1990s, thanks to better legal frameworks and flexible operating structures which enable the
association model to be adapted to the most varied social needs. Particularly important within
this group is the role of NGOs, which – often working together with similar organisations and
institutions in the north – manage to raise copious resources and thus operate on a wider scale.
Similarly, the social partners are also often active in several countries, promoting social
economy structures and initiatives.
2.9 Thanks to both their structural and their operating characteristics, cooperatives, mutual benefit
societies, associations and other organisations and enterprises related to the social economy
have considerable economic and social impact in Africa. First and foremost, they provide jobs
and direct, democratic participation in the organisation and distribution of resources. In
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addition, operating more widely throughout society and often in the poorest rural areas where
state initiatives are fewer or non-existent, social economy enterprises and organisations give
the most vulnerable groups (the poor, women, people with disabilities, unskilled workers,
migrants etc.) access to social and/or economic services. Whether in terms of micro-financing
or medical care and welfare assistance for HIV/AIDs sufferers, or participation in a farming
cooperative or a burial society, social economy organisations and enterprises provide social
protection measures on an inclusive, community basis which, at the same time, generate goods
and services with undeniable economic impact, directly helping to reduce poverty.
2.10 The role of social economy enterprises and organisations becomes even more important in the
context of the effects of the global economic and financial crisis, which, in Africa, came on top
4
of the effects of the 2007-2008 food and energy crisis . As the economic and social situation of
a large part of the population deteriorated, developing countries' governments should have
reinforced and expanded social protection systems, which were often lacking in some respects.
This is an area where the social economy is already present and active, often compensating for
the shortcomings and fragmented nature of state initiatives, without taking governments' and
institutions' roles and responsibilities away from them.
3. The ILO programme
3.1 The social economy, due to its inherent characteristics, contains within itself the means to
create new jobs, increase compliance with core labour standards and promote social protection
and social dialogue. It therefore fits in perfectly with the strategic objectives set by the
International Labour Organisation to achieve and guarantee decent work, which is defined as
such when carried out "in conditions of freedom, equity, security and human dignity". As a
longstanding primary objective of the ILO's work, decent work is considered central to poverty
reduction plans and is a tool for promoting inclusive and fair sustainable development.
3.2 In its report entitled The Decent Work Agenda in Africa: 2007–2015 (ILO, 2007), the ILO sets
out the opportunities and challenges that Africa must face in order to make decent work a
reality throughout the continent and in order to ensure adequate economic and social
development. The main challenges identified concern unemployment, underemployment and
poverty; the role played by social protection in development; problems associated with social
exclusion and the spread of HIV/AIDS. The document does not explicitly mention the social
economy. However, the concepts, measures, attention to cooperatives and associations, the
central importance given to equity, and social participation and protection are all compatible
with the foundations of the social economy.
3.3 Over the years, the ILO has gained know-how that is relevant to the social economy, partly
through its traditional instruments and partly by setting up a unit for cooperatives
4
See Opinion REX 285 – CESE 1954/2009, Supporting developing countries in coping with the crisis, rapporteur: Mr Jahier.
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(EMP/COOP) and launching a set of technical assistance programmes spanning continents (e.g.
CoopAfrica) or individual countries (e.g. SAY JUMP! in South Africa).
3.4 Thus, it is no coincidence that the ILO should be the first to open the international debate on
Africa's social economy. After commissioning a series of analyses and studies on cooperatives
in Africa, it held a conference on "The social economy – Africa’s response to the global crisis"
in Johannesburg in October 2009. The conference, which brought together participants from all
corners of Africa, culminated in the adoption of a Plan of Action for the Promotion of Social
5
Economy Enterprises and Organisations in Africa .
3.5 The plan of action sets out four strategic objectives:
 at global level, the ILO and social economy stakeholders undertake to enhance the
recognition of social economy enterprises and organisations and increase the number of
partnerships between social economy stakeholders in the north and south and between
African social economy networks and those in other regions;
 at regional level, they undertake to promote social economy enterprises and organisations,
mobilising resources in order to establish a social economy programme for Africa;
 at national level, the objective is to establish, strengthen and/or promote an enabling legal,
institutional and policy environment for social economy enterprises and organisations and
to develop and strengthen social economy structures;
 finally, at micro and meso levels, the objective is to enhance the efficiency of social
economy enterprises and organisations so that they become more effective and contribute
to meeting people’s needs in terms of social protection, income creation, employment
promotion, rights at work, food security, environmental protection, the fight against
HIV/AIDS, social exclusion, and so on.
3.6 The impact of the global economic and financial crisis came on top of the food and energy
crises, making the Johannesburg plan of action's objectives all the more urgent. The ILO
estimates that about 73% of sub-Saharan workers are in precarious employment. This
percentage may have gone up to 77% in 2009, in all likelihood exacerbating migration tension
both within Africa and between Africa and Europe, with many workers seeking a better future.
The crisis has already made itself felt through reduced foreign direct investment in
infrastructure and goods manufacturing, and decreasing migrant remittances. Promoting and
fostering the establishment of social economy enterprises and organisations helps to create new
jobs, thus providing a practical alternative to migration flows.
3.7 The vital contribution of cooperatives to socio-economic development recently led the United
Nations to declare 2012 as the International Year of Cooperatives. This will present an
opportunity to promote and broaden the role of social economy enterprises and organisations.
5
See Appendix 1 and http://www.ilo.org/public/english/region/afpro/addisababa/pdf/se_planofaction_en.pdf.
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4. Perspectives and recommendations for EU involvement and new priority policies
4.1 The social economy is a significant phenomenon in the European Union and its economic and
social role is gaining increasing recognition. In 2006 the EESC produced an initial, extensive
report to this effect6.
In 2009, the European Parliament recognised the social economy as a pillar of European
integration, "whereas the social economy represents 10% of all European businesses, with
2 million undertakings or 6% of total employment, and has great potential for generating and
maintaining stable employment"7.
Lastly, the EESC has recommended the recognition and preservation of the different enterprise
models, including the social economy8.
4.2 The social economy does not have its own specific place among the factors that determine EU
action under its external cooperation programmes. However, the main sectors where social
economy organisations and enterprises operate in Africa are all among the EU's operational
priorities, i.e. social protection, health, social inclusion, employment, agri-rural development,
microfinance and culture. As a result, although not specifically directed towards social
economy organisations and enterprises, relevant EU instruments and policy areas that could be
employed are already in place.
4.3 However, in order for this new socio-economic reality of the African continent to be included
in the EU's development cooperation, it is recommended that the EU formally recognise the
existence of Africa's social economy. The EU may find a specific interest and added value in
including a new priority of this type in its own agenda, as it would encourage explicit
cooperation with international bodies, such as the ILO and the World Bank, thus developing
system synergies, which are becoming increasingly useful in development cooperation.
Moreover, this new priority would include key European social economy stakeholders and
consequently, it would help to encourage European public support for increased EU external
aid.
4.4 The most effective means for ensuring the conceptual recognition of the role and contribution
of the social economy to Africa's development is to promote the sector through existing EU
partnerships with Africa, namely through the Cotonou Agreement and the EU-Africa
Partnership.
4.4.1 As regards the Cotonou Agreement, it is regrettable that the 2010 revision has already been
concluded and that provisions on the social economy were not included in this revision.
6
CIRIEC, The social economy in the European Union, CESE/COMM/05/2005.
7
European Parliament resolution of 19 February 2009 on Social Economy; rapporteur: Ms Toia.
8
OJ C 318, 23.12.2009, p.22.
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However, EU delegations in African countries should take steps to rapidly include social
economy organisations and enterprises in the list of actors to be mapped and to be invited to
consultations.
4.4.2 Moreover, the 2015 revision should provide the opportunity to explicitly recognise and include
the social economy in the category of 'non-state actors' who are to be informed, consulted and
involved in the implementation of the Agreement, in addition to receiving the financial
resources and capacity-building to enable them to be involved effectively.
4.4.3 The EESC considers that the reflection on EU relations with ACP countries for the period post
2020, when the Cotonou Agreement will expire, should not only ensure the inclusion of
institutional provisions for non-state actors similar to those of the Cotonou Agreement, but
should also ensure that the social economy is explicitly included in this category.
4.5 In relation to the EU-Africa Partnership, direct links can be established between the objectives
and actions of the 7th Partnership on Migration, Mobility and Employment and the social
economy, notably as regards contributing to employment creation, the gradual formalisation of
the informal economy and the promotion of decent work. Within this context, the 3rd EU-
Africa Summit, to be held in November 2010, and the new Action Plans that will be adopted at
the Summit will be a tangible opportunity to promote the social economy. For example, the
new Action Plan for this Partnership could include:
 as an objective: the recognition and promotion of the social economy as a means of
bridging the gap between the formal and informal economy and encouraging creation of
decent jobs;
 as an action: enhancing the capacities and skills of African social economy actors by
developing curricula in vocational training institutions and universities, notably on
management;
 as an action: facilitating loans and micro-credit for social economy actors;
 as an action: assisting governments in Africa to establish a legal, institutional and policy
environment conducive to the promotion and operation of social economy enterprises and
organisations.
4.6 At sectoral level, African social economy organisations and enterprises are very active in the
agricultural sector and in rural development. Concrete commitments in this area have been
made under the EU-Africa Strategy for agriculture and in the Communication on Advancing
African Agriculture9. However, neither refers to the sector of cooperatives which is among the
key pillars of Africa's social economy. However, the opportunities for action and cooperation
with African agricultural and rural cooperatives are numerous, and would correspond to the
9
Communication from the Commission to the Council and the European Parliament - Advancing African Agriculture - Proposal
for continental and regional level cooperation on agricultural development in Africa (COM(2007) 440 final).
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objective of "putting emphasis on improved governance of agriculture and supporting capacity-
building on the part of African public and private organisations involved in agriculture"10.
4.6.1 Moreover, it is worth noting that the European Instrument for Development (DCI) includes a
thematic programme on food security, another sector where existing EU instruments and
programmes could be used to recognise the fundamental role that African social economy
organisations and enterprises can play in European development cooperation.
4.7 An additional thematic programme of the DCI which should be considered is Investing in
People. This programme, for the development of human resources, could be used to support the
training and the development of entrepreneurship skills of social economy actors in Africa.
4.7.1 This would be in line with the provisions of the ILO Declaration on the development of skills,
notably on management. Education and training are fundamental for strengthening the capacity
of social economy organisations and enterprises and allowing them to compete in the markets.
Particular efforts should also be invested in education and training for women, whose role in
Africa's economies is often undervalued, particularly in the agricultural sector and in rural
areas.
4.8 As far as education and training for both skills and management development are concerned,
the EU should facilitate and foster the relationships between European and African social
economy organisations and enterprises. Exchange of experiences, good practices and technical
assistance along north-south and south-south axes would help to strengthen African
structures11. Therefore, the EESC encourages the creation and the strengthening of social
economy networks (north-south and south-south) as an essential means of cooperation and
transfer of know-how among social economy organisations and enterprises.
4.9 Education and training are also important for craftsmanship and, more broadly, for cultural
cooperation. Both areas are important for job creation, as the EESC has already stated several
times. Consequently, the EU should take these sectors into consideration when including
Africa's social economy in its programmes and policies.
4.10 Moreover, with respect to creating employment, which, alongside social protection and gender
equality, is a fundamental strand of the social economy, especially as regards rural
employment, some aspects of the EU-Africa Strategy could be linked to the objectives of the
Johannesburg Plan of Action. This applies to the Africa-EU Partnership on Migration, Mobility
and Employment Priority Action 3 on employment and poverty alleviation, which emphasises
the principles of decent work.
10
The Africa-EU Strategic Partnership - A Joint Africa-EU Strategy, point 73.
11
A positive example of north-south social economy network is the Réseau ESMED (Réseau Euro-méditerranéen de l'Economie
Sociale), which includes organisations from Spain, France, Italy, Morocco, Portugal and Tunisia. It helps and fosters exchanges
and cooperation projects within the framework of the Euro-Mediterranean Partnership.
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4.11 Another means to ensure the conceptual recognition of the role of the social economy in
Africa's development could be the 2010 European Report on Development. In 2010 the report
will address the topic of social protection, an area where social economy organisations and
enterprises play a fundamental role, especially in Africa, as already stated 12. Moreover,
explicitly including Africa's social economy in the 2010 European Report on Development
would allow for the drafting of a specific social protection policy in EU development
cooperation, which is currently absent.
4.12 The EESC also recommends that the Commission start mapping how Member States cooperate
with African social economy players, to allow greater coordination and division of labour in
this area between the EU and Member States.
4.13 In order for the African social economy to effectively contribute to poverty eradication, an
enabling environment is required, including the appropriate legal framework,
capacity-building, access to financing and networking among African social economy
organisations and their European counterparts. As regards the legal environment, African
authorities should be encouraged by the EU and the ILO to register social economy
organisations and to introduce legislation that will allow for the effective operation of these
actors, covering the key issue of ownership of the means of production. The EU and Member
States could share best practices from European countries where the social economy is most
active.
4.13.1 EU support for capacity-building and networking of social economy actors should be directed
at national, regional and European level though, in particular, the Cotonou Agreement, the EU-
Africa Strategy and the Thematic Programme Non-State Actors and Local Authorities in
Development (European Instrument for Development Cooperation)13. Activities could include
support for coordination, advocacy and dialogue, vertical and horizontal integration of social
economy organisations, training, etc.
4.13.2 To this end, social economy organisations should be included in the category of eligible
non-state actors in the above Thematic Programmes. In addition, financing for these Thematic
Programmes and for additional Thematic Programmes where the social economy could be
14
effectively involved should be increased during the review of the forthcoming European
Financial Perspectives (2014-2020) until it has doubled overall, as already called for by the
EESC15. Irrespective of EU financing, coordination, dialogue, synergies and concrete
cooperation projects should be encouraged and continued between different sectors of the
12
See points 2.8 and 2.9, above.
13
Article 5.1.2 of this programme states that the EU will support initiatives that contribute to an "increased number of trans-national
exchanges, confidence building, networking and coordination activities between non-state actors and local authorities (north-
south, south-south)".
14
For example, the Thematic Programmes of the European Development Cooperation Instrument Investing in People and Food
Security.
15
See point 6.3 of Opinion REX/285-2009 on Supporting developing countries in coping with the crisis, rapporteur: Mr Jahier.
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European and African social economy and, notably, among African organisations. Similarly,
funding for relevant programmes of the 11th European Development Fund (EDF, 2014-2019)
should be increased, in order for the social economy to benefit from this assistance.
4.14 An additional aspect of an enabling environment is, first and foremost, the genuine existence of
the conditions for access to financing for non-state actors, on the basis of simplified
procedures.
A particular, innovative aspect is long-term loans for more structured social economy actors.
For its part, the EU is called upon to facilitate access to such loans, via existing or new
instruments.
4.15 Lastly, the EESC calls for European intra- and inter-institutional cooperation on the promotion
of the African social economy:
 the European Parliament, which has already adopted a resolution on the impact of the
social economy on European integration16, is called upon to adopt a resolution on the
contribution of the African social economy to poverty eradication, in the Development
Committee and/or the ACP-EU Joint Parliamentary Assembly;
 the Belgian Presidency of the EU Council, which will be in office during the second half of
2010 when the 3rd EU-Africa Summit is to be held, is called upon to actively increase
recognition of the African social economy and support therefor;
 it is recommended that the Commission explore avenues for including the social economy
in the Commission-ILO Strategic Partnership in the Field of Development, which aims to
reduce poverty and contribute to achieving the Millennium Development Goals and the
17
Decent Work for All Agenda .
Brussels, 15 July 2010.
The President
of the
European Economic and Social Committee
Mario Sepi
***
N.B.: Appendices overleaf.
16
See footnote 4.
17
http://ec.europa.eu/europeaid/what/social-protection/documents/memorandum_of_understanding_ec_ilo_en.pdf.
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APPENDICES
Appendix 1 Plan of action, adopted in Johannesburg, 21 October 2009, at the ILO Regional
Conference on The social economy - Africa's response to the global crisis
PREAMBLE
We, the participants at the Conference on The Social Economy: Africa's response to the Global
Crisis (Johannesburg, 19-21 October 2009),
1. Having agreed on the following definition of the social economy: "the social economy is a
concept designating enterprises and organisations, in particular cooperatives, mutual benefit
societies, associations, foundations and social enterprises, which have the specific feature of
producing goods, services and knowledge while pursuing both economic and social aims and
fostering solidarity";
2. Recognising the importance of the role of the social economy and its enterprises and
organisations in African society, as well as their role in responding to the multifaceted crisis
affecting African countries and their people, including those working in the informal economy
and in rural areas;
3. Further recognising the extraordinary diversity of the social economy and the specificity of
each of its components, namely cooperatives, mutual benefit societies, associations,
foundations and social enterprises;
4. Recalling the efforts of many African governments and regional bodies to create a favourable
environment for social economy enterprises and organisations, as well as the aims of the
Declaration and Plan of action adopted by the African Union Extra-Ordinary Summit on
Employment and Poverty Alleviation in Africa (Ouagadougou, Burkina Faso, 3-9 September
2004);
5. Acknowledging the congruence of the aims of the social economy in Africa with the relevant
International Labour Organisation (ILO) standards and documents, namely:
 Recovering from the crisis - A Global Jobs Pact (International Labour Conference, 2009),
 the African Decent Work Crisis Portfolio adopted by the Preparatory Meeting of Experts
on the 1st African Decent Work Symposium (Addis Ababa, February 2009),
 the Declaration on Social Justice for Fair Globalisation (2008),
 the Decent Work Agenda for Africa: 2007-2015,
 ILO Recommendation 193 concerning the Promotion of Cooperatives (2002),
 the ILO code of practice on HIV/AIDS and the world of work (2001),
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 the outcomes and conclusions of recent general discussions at the International Labour
18 19
Conference (ILC) on the informal economy , sustainable enterprises , youth
employment20, rural employment21, social protection22 and gender equality23,
 the ILO Declaration on fundamental principles and rights at work (1998);
6. Convinced that the social economy provides complementary paths to development that
coherently bring together the concerns of economic sustainability, social justice, ecological
balance, political stability, conflict resolution and gender equality;
7. Aware of the need to address the following issues in a coherent and integrated manner: the
promotion of cooperatives and other social economy enterprises and organisations as well as
access to decent work and its four pillars, namely, labour standards - including the fundamental
principles and rights at work, decent employment creation for women and men, social
protection for all, and tripartism and social dialogue;
8. Observing the resilience of many social economy enterprises and organisations in times of
crisis in general, and more specifically in the context of the current global economic, financial,
social and employment crisis;
9. Acknowledging the contribution of social economy enterprises and organisations in meeting
women's and men's needs and aspirations, contributing to the decent work agenda, addressing
the food crisis, the HIV/AIDS pandemic and environmental challenges, and enhancing voice
and representation;
10. Recognising the need to build and develop linkages between the social economy actors and
other private and public actors, as well as with employers' and workers' organisations;
11. Stressing that the promotion of social economy enterprises and organisations should not
release governments from their responsibility to provide for basic needs;
12. Noting the special status of cooperatives and their global representative body, the International
Cooperative Alliance (ICA), under the ILO Constitution, which has been reaffirmed by ILO
Recommendation 193 and the Memorandum of Understanding signed between the ILO and the
ICA in 2003;
have adopted the following Plan of Action for the promotion of social economy enterprises and
organisations in Africa and call for its implementation and periodic reviewal.
18
Resolution concerning decent work and the informal economy (90th ILC Session, 2002).
19
Conclusions concerning the promotion of sustainable enterprises (96th ILC Session, 2007).
20
Resolution concerning youth employment (93rd ILC Session, 2005).
21
Resolution concerning the promotion of rural employment for poverty reduction (97th ILC Session, 2008).
22
Report of the Committee on Social Security (89th ILC Session, 2001).
23
Report of the Committee on Gender Equality (98th ILC Session, 2009).
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PLAN OF ACTION FOR THE PROMOTION OF SOCIAL ECONOMY ENTERPRISES AND
ORGANISATIONS IN AFRICA
1. Strategic objective No. 1: At the global level
To enhance the recognition of social economy enterprises and organisations and increase the
number of partnerships with them
1.1 Areas of work for the International Labour Office;
1.1.1 Suggesting for consideration by the Governing Body (GB) that a discussion be held at the
International Labour Conference on the contribution of social economy enterprises and
organisations to the Decent Work Agenda;
1.1.2 Increasing the capacity of the International Labour Office to promote social economy
enterprises and organisations and provide adequate services for its constituents;
1.1.3 Promoting the role of social economy enterprises and organisations during major International
Labour Organisation (ILO) international and regional events (symposia on decent work,
tripartite workshops, regional conferences, etc.);
1.2 Areas of work for other social economy stakeholders;
1.2.1 Building partnerships between social economy stakeholders in the north and south, as well as
south-south partnerships;
1.2.2 Connecting African social economy networks with those in other regions.
2. Strategic objective No. 2: At the regional level
To enhance knowledge relating to promoting social economy enterprises and organisations and
reinforcing African social economy networks
Areas of work:
2.1 Increasing the capacity of ILO constituents and other key stakeholders to promote social
economy enterprises and organisations;
2.2 Mobilising resources in order to establish a social economy programme for Africa. This may
include inter alia:
 establishing a regional observatory which would be dedicated to promoting social economy
enterprises and organisations in Africa and would include statistics, a database of experts,
relevant legislation, policies, tools, research, networks, good practices, etc. using national
and sub-regional platforms,
 facilitating the exchange of experiences and practices in Africa and beyond between ILO
constituents, social economy stakeholders, policymakers and development partners;
 supporting the creation or strengthening of existing pan-African networks of social
economy promoters, relying on national platforms of coordination, advocacy and dialogue
and other existing national networks, particularly through regular regional conferences,
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 identifying the main social economy actors and promoters in Africa and creating a network
of expertise on the promotion of social economy enterprises and organisations. This
network would be designed for social economy actors, promoters and policymakers and
would aim to gather and share experience and good practices throughout the region and
beyond.
3. Strategic objective No. 3: At the national level
To establish an enabling legal, institutional and policy environment for social economy enterprises
and organisations and to strengthen and promote social economy structures at the national level
Areas of work:
3.1 Supporting the development of national platforms of coordination, advocacy and dialogue
among ILO constituents, social economy enterprises and organisations, promoters and
policymakers;
3.2 Establishing detailed country-specific action plans that are designed on the basis of dialogue -
through the national platforms - and in accordance with institutional and policy frameworks
and existing social economy initiatives in the various countries;
3.3 Wherever needed, supporting the vertical and horizontal integration of social economy
enterprises and organisations at the national level, relying on existing networks;
3.4 Building the capacities of constituents and other stakeholders regarding social economy
monitoring systems and systems for measuring social economy performance (in the economic,
social and environmental field) by using the expertise and tools available throughout the world
and adapting them to the regional context;
3.5 Strengthening the capacities of social economy enterprises and organisations by developing
appropriate curricula in training institutions and universities;
3.6 Developing collaboration between United Nations agencies and development partners with a
view to strengthening social economy enterprises and organisations.
4. Strategic objective No.4: At the micro and meso levels
To enhance the efficiency of social economy enterprises and organisations so that they become
more effective and contribute to meeting people's needs in terms of income creation, social
protection, employment promotion, rights at work, food security, environmental protection, the
fight against HIV/AIDS, the elimination of child labour and the mitigation of the impact of the
crisis.
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Areas of work:
4.1 Increasing the capacities of social economy enterprises and organisations by linking social
economy business support institutions and training institutions in Africa with cooperatives,
mutual benefit organisations, associations and social enterprises;
4.2 Supporting local authorities and other stakeholders with a view to integrating social economy
dynamics into social and economic development plans and initiatives through dialogue
processes in order to ensure that those plans and initiatives are sustainable and environment-
friendly;
4.3 Using and mobilising the ILO's and other development partners' knowledge and expertise in
building capacities (through technical units and regional/national cooperation programmes) in
order to facilitate and support capacity-building and tools development for apex bodies of
cooperatives, mutual benefit organisations and associations;
4.4 Improving and sustaining access to finance, business services, social services, etc. for the most
vulnerable population groups (more specifically women, young people, elderly citizens,
people with disabilities, child labourers, and people affected with HIV) by promoting their
participation in cooperatives, associations, mutual benefit organisations, foundations and social
enterprises, thereby relying on grassroots initiatives and local traditions.
*
* *
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Appendix 2: Diagram of the social economy (reproduced from the ILO report on African
responses to the crisis through the social economy, p. 8)
*
* *
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Appendix 3: Bibliography
P. Develtere, Ignace Pollet & F. Wanyama (eds.), Cooperating out of poverty: The renaissance of the
African cooperative movement, ILO-CoopAfrica-BRS, 2009.
European Economic and Social Committee, The social economy in the European Unity, report by
R. Chaves & J. L. Monzòn, 2006.
B. Fonteneau & P. Develtere, African responses to the crisis through the social economy, Working
Document of the ILO International Conference on the Social Economy, Johannesburg, 19-21 October
2009,
http://www.ilo.org/public/english/region/afpro/addisababa/pdf/africantothecrisis_en.pdf.
Institute of Development Studies (IDS), University of Sussex, Voices of the poor in the current crisis,
Marc 2009,
http://www.ids.ac.uk/download.cfm?objectid=3E8C31B2-5056-8171-7B5A378744F8D5F1.
Institute of Development Studies (IDS), University of Sussex, Social protection responses to the
financial crisis: what do we know?, March 2009,
http://www.ids.ac.uk/download.cfm?objectid=3E8CC9CC-5056-8171-7B3BCA3FF00E8F81.
International Labour Organisation (ILO), The decent work agenda in Africa, 2007-2015, report of the
Director-General, April 2007,
http://www.ilo.org/global/What_we_do/Publications/Officialdocuments/Director-Generalsreports/lang-
-en/docName--WCMS_082282/index.htm.
ILO, Cooperating out of poverty: The renaissance of the African cooperative movement, Geneva, 2009.
Johannesburg Conference Documents on The Social Economy - Africa's Response to the Crisis,
http://www.ilo.org/public/english/region/afpro/addisababa/events/socialeconomyoct12_09.htm.
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