In recent times, the sustainability of government-funded community projects has emerged as a significant concern for both governmental entities and donors. The objective of this study was to investigate the sustainability obstacles faced by the Peach Value Addition Cooperative project in the Eastern Cape Province of South Africa. The research was conducted using a qualitative technique and under an interpretivist paradigm. A purposive sampling strategy was employed to select ten senior managers from cooperatives who have a minimum of five years of professional experience. Thematic analysis was conducted on the data. The study's findings revealed that the Peach Value Addition Cooperative project encountered difficulties related to funding and financial matters. Additionally, the cooperative faced challenges stemming from a low market demand for their products. The study also identified issues within the cooperative's leadership, including instances of nepotism, favouritism, patronage, and corruption. Furthermore, the cooperative experienced high rates of absenteeism and exhibited selective application of consequences for cooperative members who committed offences. The study's results also confirmed that leadership deficiencies, unethical behaviours, inadequate financial management, lack of skills, and ineffective governance were identified as key concerns impacting the long-term viability of the Peach Value Addition Cooperative project. The study suggests that the implementation of effective governance practices, including the eradication of corruption, fraud, favouritism, and nepotism, the establishment of checks and balances to mitigate authoritarianism, the development of a transparent succession plan, and the adoption of a comprehensive code of ethics and code of conduct, are strategies that would contribute to the long-term viability of the Peach Value Addition Cooperative project in the Umzimvubu area.