Local Bakery Cooperative Changing Family and Community Life in South Africa

During 2014, DGRV and SEDA established the Bakery Incubation Centre of South Africa (BICSA), with a mandate to support cooperatives and SMME’s in the food manufacturing sector with emphasis on Bakeries in rural, peri-urban and urban areas. The aim is to support enterprises to create sustainable jobs, alleviate poverty and ensure food security in the disadvantaged communities in South Africa. The following case study represents an urban township life changing intervention by DGRV that addresses issues of poverty, unemployment, income generation and reduces inequalities.

Khumo Bohlale Family Bakery Primary Cooperative LTD

This cooperative is based in the Township of Mamelodi north of Pretoria.  The cooperative was registered in November 2018 and subsequently entered the BICSA incubation program. The idea of a bakery cooperative emerged because Mrs. Matsi was retrenched in 2005 and started baking scones from her kitchen.  The business grew and over time the family got involved in a form of a cooperative.   It has since grown to have two outlets in different sites of the township.

The cooperative is currently the main bread producer & provider in the community of Nellpmaphuis and Mamelodi, Pretoria and increased their market share massively.

Support Interventions

  • BICSA acted as advisor on the size and type of equipment required, electricity capacity and water requirements as well as the layout of the bakery.
  • BICSA assisted with the registration of the cooperative in November 2018.
  • Cooperative training to assist the cooperative understand governance and business compliance.
  • Training and skills development including business training, basic book keeping, cooperative training, basic baking and advanced baking
  • Health and safety workshops, food handling and safety training.
  • BICSA assisted with the development of the products, deriving the nutritional values of the products, label design and branding of the packaging to create access to market.
  • Legal compliance including the drafting of all employment contracts and the registration of all employees for Unemployment Insurance fund
  • Assistance for funding application to procure additional equipment to accommodate growth.
  • Access to the BICSA in-house production facility with the necessary health certification as required by a school feeding scheme tender

Development Impact

Through DGRV and SEDA funding made available, the mentorship BICSA is able to provide continues support to make an impact to the Khumo Bohlale Family Bakery Cooperative.

This bakery is able to financially support the whole family, created employment to the community of Nellpmaphuis and Mamelodi and further played a critical role as an essential service provider during the COVID-19 national lockdown.  Fresh, healthy bread available daily and at lower price compared to the dominating traditional bread suppliers.

Khumo Bohlale Family Bakery Primary Cooperative has reached a minimum average monthly turnover of R250 000 that increased to R330 000 over the peak December 2019 season.

Additionally, the cooperative has created 12 full-time jobs including the 5 members of the cooperative.

The GDP of the areas, province and country is different because of this economic activity and money circulation within the township.

Project Stories