African cooperatives and the financial crisis

This paper considers how cooperatives, particularly financial cooperatives and cooperatives in the agricultural sector in Africa are managing the current crisis. The paper also provides an analysis of the triggers of the crisis and considers how economies throughout the world are being affected, with attention given to cooperatives in Sub-Saharan Africa.

It is found that cooperatives are being affected by reductions in global demand and volatility in commodity markets, as these factors have potential to undermine the income of members. It is expected that unemployment and the number of people in extreme poverty will increase substantially, with individual producers likely to the worst affected by the financial crisis in Sub-Sahara Africa. Given this context, cooperatives need to closely monitor their operations to ensure that their net worth does not deteriorate.

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