Ethiopian Cooperative Commission has unveiled plans to consolidate 40,000 similar cooperatives into 10,000 entities as part of a comprehensive reform initiative aiming to bolster the financial resilience of cooperative societies and streamline human resource utilization.

According to Chaltu Tamru, the Commission’s Public Relations Officer, existing cooperatives have fallen short of expectations due to financial constraints and manpower limitations. Many of these associations operate redundantly within the same sector while offering multifaceted services under a single license. Currently, there are 110,000 cooperative societies nationwide, boasting over 28 million members and a collective registered capital of Birr 49.7 billion.

Some cooperatives with strong potential will undergo enhancement independently, others will merge to amplify their impact. Stakeholder consultations involving regional cooperative leaders and representatives from various sectors have been integral to the reform process, with initial efforts underway in Dire Dawa city and Oromia region. Plans are also underway to extend these reforms to other regions in the near future.

Source: Addis Zemen