ADDIS ABABA – Cooperatives in the capital have played a transformative role in expanding job opportunities and financial access, creating over 7,500 jobs within the past nine months and facilitating an annual transaction volume exceeding 13 billion Birr, according to the Addis Ababa Cooperatives Commission.
Speaking at the first anniversary celebration of the Capital Saving and Credit Cooperative (Capital SACCO), Deputy Commissioner Habteyes Diro highlighted the sector’s growing impact. He revealed that a total of 1,186 cooperatives are currently operating in the metropolis, ranging from Woreda to city-wide levels, with 12 major cooperatives directly accountable to the Commission.
Addis Ababa alone accounts for 60% of all cooperatives operating nationally, giving the city a leading position in the sector. “Our focus is on building globally competitive cooperatives that can serve as engines for community-based finance,” Habteyes said, noting ongoing research aimed at generating evidence-based solutions as part of the Commission’s second reform period.
Despite the progress, he acknowledged that Ethiopia still lags behind regional leaders such as Kenya in cooperative development. “There’s much to learn from countries that have successfully harnessed the power of cooperatives. Collaborating with research institutions and development partners will be crucial to realizing our potential,” he added.
Capital SACCO CEO Fasikaw Sissaye emphasized the role cooperatives are playing in addressing challenges related to access to finance and unemployment, particularly among low- and middle-income communities. “Although we’re still in our early stages, we have already extended loans to numerous citizens and significantly encouraged saving habits,” Fasikaw noted.
One of the beneficiaries, Heriya Nuru, shared her experience of receiving two rounds of interest-free loans from Capital SACCO. “Beyond the financial support, the cooperative provided training that helped me manage my resources effectively. These institutions are not only fast in responding to financial needs but also instrumental in empowering women to run sustainable businesses,” she said.
Starting from modest beginnings, Capital SACCO now boasts a total capital exceeding 249 billion Birr, reflecting rapid growth and public trust in cooperative-based financial solutions.
As the cooperative movement gains momentum in Addis Ababa, stakeholders agree that with sustained support, innovation, and partnerships, the sector could become a cornerstone of inclusive urban development and economic resilience.
BY MESERET BEHAILU
THE ETHIOPIAN HERALD SATURDAY 26 APRIL 2025
