Cooperatives have a good potential to contribute to the recently introduced macro-economic reform and improving the welfare of communities. The Addis Ababa Cooperatives Commission recently organised a consultative forum between cooperatives and unions, which aimed at enhancing market linkage between producers and traders. In this case cooperatives are said to be the right prototypes to realize the link and insure the planned macro- economic reform and national development.
“When the Country was facing scarcity of products and exceeding price of commodities and service, cooperatives have shown great commitment in delivering quality products with fair price” said Lilti Giday, Commissioner of the Addis Ababa Cooperatives Commission.
She noted that they have been playing crucial role in assisting the government with its heavy burdens of controlling rising illegal price limits and inflation.
Cooperatives are crucial in creating comfortable and sustainable working conditions as well as enabling situations for both high and low income communities to thrive and grow together, according to her.
She also noted that during the struggle to contain the COVID-19 pandemic, against the inflation, manmade scarcity of products and the rising price of basic commodities cooperatives were playing crucial role.
Habteyes Diro Deputy Commissioner of the Addis Ababa Cooperatives Commission presented a document which highlights cooperatives contribution to market linkage between producers and trade unions. He indicated that the City administration and the commission have paid special attention for cooperatives and trade unions are major sectors to alleviate the economic inflation and also improve the wellbeing of communities by providing quality products with fair price.
On his presentation he noted that the City administration and the commission planned to strengthen the capacity of cooperatives, trade unions and enhance the market system. He said creating awareness about the necessity of maintaining healthy or fair market link between producers and trade unions that the producers have to get fair price for their products or commodities, shortening unnecessary market lines between producers and traders, have been priority targets of the Administration and the Commission.
Among the achievements through the cooperatives, the usual supply from ordinary private seller has been reduced by twelve per cent because of the cooperatives interaction with cooperative unions. The deputy Commissioner has presented different practices of several cooperatives from different states in the Country.
The market transaction through cooperatives and consumers on industrial and agricultural products, during the past fiscal year, was 3.9 billion Birr. The government allocated over one billion Birr revolving fund to address the financial shortcomings of cooperatives and their plans that would serve the public’s economic crisis. According to Habteyes, during the past fiscal year the Addis Ababa Cooperatives Commission worked with the producers, industry owners, and farmers with integrity. Following the reform, tasks were also led by educated and skilled human resource. There was also a better performance in assistant the cooperatives financially and technically, he noted. He also said officers of the Commission have exerted maximum effort with their follow up and assistance, financial supply duties and cooperation.
While describing terms and conditions that apply between cooperatives and trade unions that have gained market linkage, he emphasised that both firms in the deal must respect the rules and regulations they have signed. In addition, producers need to consider trust with their buyers in order to create market linkage. He also stressed that engagement of the heads of the City cooperatives must be high.
“With its overall interaction the impact of cooperatives is expected to be sustainable economic growth, mutual benefit, abundant product supply and bold economic contribution”, he noted.
Meanwhile, it was highlighted by the Addis Ababa Cooperatives Commission that cooperatives must provide quality services for the public by implementing modern operational systems.
It was indicated that a great deal of experience was taken from the cooperatives’ recent official visit to The Netherlands. The cooperatives were engaged in manufacturing, service delivery and supply of products for years. Thus, the commission stressed in order to play crucial role both in the economy and market, the cooperatives must develop a modern operating system and financial administration systems. It was also indicated that the City administration is implementing improved and enabling systems for cooperatives to realize the aforementioned issues of concern.
However, Habteyes said that in the past fiscal year there was improved quality of products, better integrity between producers and trade unions, particularly in Oromia state, producers were supporting trade unions in terms building stores, payments were intact, even more trade disagreements were solved through dialogues.
Even though there were several achievements made through the trade linkage, there were also challenges which the commission has identified as major issues of concern to be solved in the future. For instance depositing purchased product in stores where they were bought and complaining when rust happens. Fluctuation of price in Selale, Lome Adama, Melka Awash and Yerer of Oromia State was also mentioned as one of the challenges that the sector is facing.
In this case, allocating the necessary finance or budget after the linkage was made, creating market link between producers and consumers on the right time, solving disagreements between producers and consumers, are set to be priority directions presented by the Deputy Commissioner. He also noted that, the Addis Ababa Trade Bureau and Ministry of Trade and Regional Integrity have to support importers and suppliers to supply commodities for trade unions with fair price. The Addis Ababa Industry Bureau is also expected to identify industries and create market linkage with trade unions in the City. Various stakeholders including the Mayor’s office have their own shares to boost the crucial role of cooperatives in the Nation’s macro-economic reform as well as improving the farewell of the communities.
The City Administration still prioritizes supporting cooperatives financially and technically for they are believed to be major tools to alleviate economic inflation and gear up economic growth by securing supply of quality products with fair price, maintaining healthy or stable market conditions between producers and consumers etc. With integrated efforts from all stake holding sectors both from government and private, cooperatives are expected to solve overall economic problems throughout the Country.
BY NAOL GIRMA
THE ETHIOPIAN HERALD FRIDAY 13 DECEMBER 2024
