EVALUATION OF THE SWAZILAND COOPERATIVE AND MARKETING PROJECT

RAPID GROWTH AND DEVELOPMENT OF FARM PRODUCTION SUPPLIES HAS PLACED A STRAIN ON THE ACCOUNTING AND ADMINISTRATIVE SERVICES OF THE CENTRAL COOPERATIVE UNION (CCU). TO ADDRESS THIS PROBLEM, THE AUTHORS RECOMMEND THAT REPRESENTATIVES FROM THE GOVERNMENT OF SWAZILAND AND OTHER IMPLEMENTING AGENCIES (AID, THE CONTRACTOR, AND THE UNITED KINGDOM OVERSEAS DEVELOPMENT MINISTRY) FORM A COMMITTEE TO SELECT A QUALIFIED GENERAL MANAGER FOR THE CCU. THE ENTIRE CCU STRUCTURE IS UNDERCAPITALIZED, WITH ITS ASSETS SERVING AS SECURITY FOR LOANS FROM THE SWAZILAND DEVELOPMENT AND SAVINGS BANK (SDSB). THE ONE-YEAR TIME-FRAME NOW USED FOR THE FISCAL BUDGET IS INADEQUATE FOR LONG-TERM FINANCIAL PLANNING. INSTEAD,FINANCIAL PLANNING SHOULD BE EXTENDED 5 YEARS AHEAD. THE CCU'S CAPITAL PROBLEMS CAN ALSO BE TRACED TO INADEQUATE GROSS MARGINS IN SALES AND SERVICES. THE AUTHORS RECOMMEND THAT THE CCU PROVIDE TECHNICAL AND FINANCIAL RESOURCES FOR CO-OP MARKETING RATHER THAN ASSUME ITS OWN MARKETING FUNCTION. THE STATE OF ACCOUNTING AT THE PRIMARY AND DISTRICT LEVELS IN NOW BEING IMPROVED. LAST YEAR, LOSSES AND RECOVERABLE LOANS COULD NOT BE SATISFACTORILY ESTIMATED. LACK OF QUALIFIED MANPOWER IN THE CCU PROVED A CONSTRAINT TO THE PROJECT. THE AUTHORS RECOMMEND THAT THE PROJECT PAPER AND THE CONTRACT WITH CLUSA (COOPERATIVE LEAGUE OF THE UNITED STATES OF AMERICA) BE REDIRECTED TO INCLUDE MORE EMPHASIS UPON MANPOWER TRAINING, FINANCE, ACCOUNTING, MARKETING, AND CREDIT MANAGEMENT.