ADDIS ABABA–Efforts are underway to enhance Ethiopia’s saving and credit cooperatives by integrating international experiences, according to the Addis Ababa Saving and Credit Cooperation Federation (AASCCF).
AASCCF Deputy Board Chairperson Genet Tilahun told The Ethiopian Herald that her organization is prioritizing the adoption of global best practices and fostering collaboration with relevant stakeholders to ensure the sustainable development of saving and credit cooperatives.
She emphasized that these cooperatives play a vital role in encouraging saving habits, creating jobs, and improving livelihoods, particularly for youth, women, and the elderly. For instance, the Organization for Women in Self Employment-WISE (Rased) in Addis Ababa boasts over 26,000 women members, showcasing the transformative potential of such initiatives. However, Genet highlighted that a significant portion of society remains unaware of the full benefits of these cooperatives due to a lack of understanding.
“Many countries successfully leverage cooperatives for socio-economic progress. Kenya is a prime example, where some cooperatives have achieved operational capacity comparable to private banks,” she noted. “While Ethiopia’s cooperatives have reached a federation stage, there is significant room for growth, which can be achieved through shared international experiences and local adaptation.”
Genet added that community-based cooperatives often outperform government-managed ones due to their stronger sense of ownership, as members dedicate their time and energy to ensuring success.
Hiwote Dagim, a member of Yichalal Hibret Sira Mahiber, shared her cooperative’s inspiring journey. Established in 2020 by Ethiopian women repatriated from Saudi Arabia, the cooperative has been instrumental in helping members achieve their dreams.
“It was always my dream to open a music training institute, but I only had one keyboard. It seemed impossible,” Hiwote explained. “However, after joining the cooperative, I was able to acquire seven soundboards, six box guitars, and one lead guitar.”
Yichalal Hibret Sira Mahiber’s success is evident. The cooperative’s loan capacity has grown significantly, rising from 200,000 Birr initially to 500,000 Birr today. Membership has also surged from 200 to 665, with members now seeking loans to purchase vehicles and houses, showcasing the cooperatives’ expanding potential.
BY MESERET BEHAILU
THE ETHIOPIAN HERALD WEDNESDAY 18 DECEMBER 2024
