Sangwe cooperative

Sangwe cooperatives are government-sponsored cooperatives in Burundi.

Launch

The government of Burundi initiated a policy of "Sangwe" colline cooperatives in 2019. They were to be supervised by Anacoop (Agence Nationale de Promotion et de Régulation des Sociétés Coopératives) and Fonic (Fonds National d'Investissement Communal). An interest-free loan of 10 million BIF (Burundian francs) is granted to each colline from the general state budget, which should be repaid in two years. The program was launched in the run-up to the 2020 national elections, and many thought it was a way for the ruling National Council for the Defense of Democracy – Forces for the Defense of Democracy (CNDD-FDD) party to gain support.

Results

The government allocated 29.1 billion BIF for these loans in the 2019–2020 budget year, and 87.83 billion BIF for subsequent budget years. Over 2,900 cooperatives received state loans. Little was done to prepare the collines in terms of training them in cooperative management and business operations. Many of the members thought the money was a donation, and did not realize it had to be repaid. Problems include poor leadership and organization, misuse of the money, failure of projects and failure to repay the loans.

Sources

• Manirakiza, Fabrice; Ndabashinze, Rénovat (11 March 2024), "Coopératives Sangwe : Un projet louable mais politisé", Iwacu (in French), retrieved 2024-07-02