Ethiopia: Officials Stress Need to Modernize Cooperative Systems

9 July 2025
The Ethiopian Herald (Addis Ababa)
By Meseret BEHAILU

- Highlighting the crucial role cooperatives play in promoting economic stability and community development, a senior official has underscored the urgent need to modernize their operations.

Bole Sub-City CEO Eshetu Lema (PhD) told The Ethiopian Herald that cooperatives significantly contribute to job creation, tackling the rising cost of living, and stabilizing markets.

He noted that modernizing their systems is essential to maximizing their impact in the future.

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"Creating jobs and ensuring market stability particularly for lower- and middle-income communities through the supply of agricultural and chemical products is vital," he said.

Currently, 21 cooperatives and one union operate under the Fana Bole Cooperative in Bole Sub-City, collectively serving 3,000 to 7,000 members with quality goods at fair prices.

According to Eshetu, cooperatives have prioritized expanding job opportunities and market linkages since the reform process began.

"Modernizing their operational systems is the next step toward enhancing their overall effectiveness," he added.

He also emphasized the role of cooperatives in fulfilling corporate social responsibility (CSR) by investing in public services such as school construction.

Fana Bole Cooperative Board Chairperson Abrham Degu echoed the CEO's remarks, stating that cooperatives play a pivotal role in curbing inflation and establishing reliable market linkages.

Fana Cooperative alone employs over 500 people and provides a variety of services, including the supply of agricultural and factory products sourced from the union. To diversify income and serve the community better, the cooperative also offers sports facilities, parking lots, a restaurant, and wedding event halls.

Looking ahead, Abrham revealed plans to construct a 20-storey modern building aimed at expanding and improving the cooperative's services.

According to available data, over 1,186 cooperatives currently operate in Addis Ababa from Woreda to city-wide levels. These cooperatives play a multifaceted role in promoting inclusive growth, reducing the cost of living, enhancing social development, serving vulnerable populations, and creating sustainable jobs across various sectors.

Read the original article on Ethiopian Herald.

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