Investment and Partnership Structures
How a cooperative takes on outside capital without losing control of itself.
For: funders, diaspora investors, cooperative boards weighing a partnership.
How outside capital enters without taking control
A special purpose vehicle keeps the investment and its risk in a separate entity. The cooperative takes part without putting itself on the line, and the members decide before it proceeds.
The six chapters below cover by-laws, special purpose vehicles, principles for equity investors, de-risking, baseline surveys and joint diaspora investment. They are written for people who will have to defend a decision in front of members or a board.
Chapter 18 — Special Purpose Vehicles in Cooperative By-Laws
Cooperative enterprises such as the first consumer store opened by Escuela Profesional Politécnica (Professional Polytechnic School), now known as the Faculty of Engineering of Mondragon Unibertsitatea, evolved into the multinational Mondragon Cooperative Corporation by deploying innovative strategies that build on the principles of cooperation to manage the dynamics inherent in group enterprises. Today, it is a unique employer of labour across more than 81 different types of cooperatives that form the Mondragon Cooperative Corporation. Conversely, cooperatives in developing countries remain producers and sellers of raw materials. This section explains how cooperatives can anchor partnerships in their by-laws and jointly invest in the production, processing, and distribution of their commodities, thus generating additional employment opportunities for youth and higher income for producers: Importance of partnerships and Special Purpose Vehicles; General Principles for effective partnerships; Key Guidelines and Conditions for Entering Partnerships; Autonomy of the Cooperative; Key Matters the AGM Should Confirm Before Approval of the partnership; and the SPV’s Role in Cooperative Value Chains Development.
Chapter 19 — Special Purpose Vehicles (SPVs)
Cooperatives in Africa, in particular, stagnate or grow at a snail’s pace because of limited capital and management expertise. Unlike the private enterprises that commonly practice partnerships to enhance performance, cooperatives do not, and hence underperform in job creation activities. This section explains the importance of partnerships; when to introduce SPVs in the business development of a cooperative; the meaning and purpose of an SPV; the key features of a special purpose vehicle; strategic benefits of SPVs for cooperatives; and Governance and Legal Anchoring of the SPVs.
Chapter 20 — Equity Investors’ Principles
A cooperative business can attract equity through a Special Purpose Vehicle (SPV). Equity is the value of the assets or investment in the SPV. The investor’s equity is protected in the following manner, as explained in this section: Core Principles for Equity Investors; Risk and Return Principle; Engineering, Procurement, Construction (EPC) Participation; Financial Structure of Cooperative Investments; Islamic Financing Models (Alternative Structures); Baseline Indicators Before Partnership; and Data and Implementation Systems.
Chapter 21 — De-Risking Job Creation
Creating jobs through cooperatives requires investment in diverse value chain nodes from production to consumption. Risks can arise, but the investments and the emerging jobs can be de-risked. This section explains the following components of de-risking: Integrated De-Risking Framework; Climate Modelling and Risk Intelligence; Current Challenges in Agricultural Insurance; Strengthening Resilience; Risk Assessment and Modelling; Risk Financing Strategies; Risk Management Systems; Disaster Risk Monitoring Systems; Capacity Building and Knowledge Exchange; Product and System Development; Objectives of the De-risking Programme; Development Goal and the Expected Impacts.
Chapter 22 — Cooperatives–SPVs Baseline
To make informed decisions, members of a Cooperative Society need verifiable baseline information about the project proposed for implementation through a Special Purpose Vehicle. A baseline survey report indicates whether the project will create more jobs and increase dividends and bonuses. This section explains the information availed through a baseline survey: Purpose of the Baseline Survey; Core Areas of the Baseline Survey using the livestock sector case; Strategic and management capacity; Technical and engineering capacity; Agricultural and veterinary capacity; Operations and support staff; Using the Baseline Survey for Institutional Capacity Building and Staff Development; Rapid Feasibility Study and Business Plan; Value Chain Model and Financial Structuring; Training Manuals, Operational Manuals, and Standards; Education and Training Programmes; and Launch, Monitoring, and Continuous Improvement.
Chapter 23 — Joint Diaspora–Cooperatives Investments
Creating jobs through cooperatives entails raising productivity. For this reason, engaging appropriate skill sets alongside technologies, capital, and commercialisation capabilities of cooperatives through joint diaspora and cooperative investments is needed. This section highlights Potential Investment Areas in the Livestock Sector; Roles of Diaspora Investors and Cooperatives; Responsibilities of Diaspora Investors; Responsibilities of the Cooperative; Conducting a Baseline Study Before Partnership; Due Diligence Prior to Investment; Business Transaction Costs; Project Cash Flow and Financial Viability; Debt Structure and Risk Sharing; and Key Financial Indicators.
Source: Job Creation Opportunities (Shirikiana handbook, in preparation), contents of August 2026. Summaries are published as chapters are finalised.
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Each topic here is a summary of a chapter from our handbooks. The full text is in the books.
Shirikiana —> to work with one another. The founding values of the cooperative movement, self-help, self-responsibility and solidarity, remain the most practical basis for collective enterprise. We join knowledge, applied action and ethical responsibility in member-owned, member-governed enterprise, guided by the International Cooperative Alliance’s principle of concern for community. We proceed incrementally, attribute every partner by name, and distinguish demonstrated capacity from stated intent.