The Ethiopian economy has been facing a number of setbacks including from Covid-19, locust invasions and the terrorist attack of the TPLF and Shene groups. The latter has caused myriads of damages in terms of loss of human lives, displacement and destruction of infrastructure.
Despite under these problematic circumstances, the government has done significant activities that are capable of stimulating the national economy in general and subsidizing the livelihood of the society in particular. Following the restoration of peace and stability and recovering from the impact of COVID-19, the Ethiopian economy is predicted to show a better performance.
The government has done commendable jobs in intensifying irrigation and enhancing the production of agricultural crops. This in turn would put the import substitution strategy in a good position. Industrial parks have also a noteworthy contribution in the production of basic products and their products have the capacity to penetrate the global market besides satisfying the local demands. Apart from the aforementioned activities, the government is also working aggressively in encouraging cooperatives and unions to maximize their role in the national economy.
Cooperatives have been playing a great role in improving agricultural products, facilitating technology transfer and strengthening market linkage thereby stabilizing the soaring inflation.
The Ethiopian Cooperative Commission (COOP) recently disclosed that cooperatives are making significant contributions to transform the agricultural-led economy into an industrial-led economy.
While officially launching the 9th National Cooperatives Exhibition, Bazaar and Symposium this week under the theme “Cooperative Marketing for Peace and Stable Market,” the commission remarked that it will strengthen its activity in a way to stabilize the market.
Addressing the opening ceremony, the COOP Finance Cooperatives Development Director Berhanu Jufera stated that the cooperatives have made an iconic contribution in providing agricultural commodities at a reasonable price to the urban low-income communities and helping to stabilize the cost of living. Over the last eight years, cooperatives have been increasing in number and have also expanded their service delivery.
The Commission has 100,000 cooperatives and 400 cooperative unions under its auspicious with more than 24 million active members across Ethiopia. Cooperatives have been also serving 500,000 unbanked citizens in keeping fair interest loans. Currently, cooperatives provide loans at a maximum level up to seven million Birr to their members.
“Therefore, the government and private sector should learn the significant impact of cooperatives in reaching large segment of the society financially .” “Cooperatives have played decisive roles in transferring technology, laying ground for flourishing manufacturing industry, increasing productivity, protecting the community from artificial price hike and making market linkages via avoiding contraband and the like,” he added.
As to Berhanu, of the cooperative serves as to regulate both the supply and demand sides of the market, exploring market opportunities, keeping product quality, and avoiding bureaucratic red tape. Some 176 producers from different parts of Ethiopia came with their products to take part in the symposium.
In this regard, the trade fair will supply 5,000 quintals of products to consumers and set affordable price cap for 25,000 citizens.
Speaking to The Ethiopian Herald, Merkeb Multipurpose Farmers’ Cooperative Manager, located in Bahir Dar town of the Amhara Regional State, Getachew Eshete stated that his firm provides agricultural inputs to customers and is currently trying to broaden its market.
“Though cooperatives have played a pivotal role in closing market gaps, they are seriously affected by the terrorist TPLF invasion of the Amhara State.” The manager further said that, Merkeb has been actively discharging its corporate social responsibility including educating the children of the local community, building schools and health centers by allocating over 10 million Birr. “To achieve the expected result from cooperatives, creating conducive business climate and raising the public’s awareness, among others is essential.” The Advisor of State Minister of the Minister of Agriculture, Sileshi Getahun on his part said that, cooperatives which are engaged in the agricultural sector are playing important role to raise productivity through providing row materials and technology to farmers and agro-pastoralists.
He also said that they are playing significant role in the establishment of agro-processing industries in a way to play their role in transforming the agricultural-led economy into an industrial-led economy.
The advisor further elucidated that cooperatives are providing uninterrupted services in the value chain of domestic and foreign trade through supplying and maintaining quality products collected from farmers and pastoralists.
They are working tirelessly by supporting farmers and pastoralists in improving their lives through stabilizing prices.
They are also carrying out comprehensive activities to provide the necessary consumer goods so that the consumer community in the cities can buy at affordable price. Cooperatives are playing a significant role in strengthening viable value chain as a result, outstanding achievements were registered. Over the past couple of years, large-scale activities by creating enabling environment to smallholder farmers and pastoralists so that they could improve their production system and uplift their livelihoods.
He also said that effort is underway to build a well-developed market and establish market linkages and energy is exerted to increase the production and productivity of the sector through undertaking irrigation development that could reduce the tendency to be dependent on rainfall.
Wheat cultivation in clustering form is amongst the other sectors that have brought a magnificent change in a short period of time. He further said that more than 400,000 hectares of land has been cultivated on the first cycle of irrigation program. As to him, initiatives entitled with “ten in ten years” have been formulated and implemented to realizing food and nutrition security by replicating the experience on other products.
Ayalsew Workneh is working as public Relation Director to the Commission. As to her, more than three thousand cooperatives activities have been disrupted in the Amhara and Afar regions due to the terrorist TPLF group invasion. She also said that, by rough estimation more than 25 million ETB worth of property of the cooperatives is demolished in the region and efforts are put in place in order to recover.
As to her, row materials and spare parts belongs to the cooperatives were destroyed and looted.
Accordingly many of them will take long time to be reinvigorated. The national exhibition, bazaar and symposium will create better opportunity for the participants to with stand the crises imposed by war and recover cooperatives union.
Different agricultural and industrial suppliers have participated in the bazaar and she called the public to participate in the event and get variety of products with more than 20 percent discounts.
It is announced that the main purpose of the exhibition, bazaar and symposium is to create strong and efficient market linkages between the cooperatives and to show the role of the unions in working together for attaining peace.
176 cooperative unions are taking part in the exhibition and bazaar. Started on February 10, the exhibition and bazaar will remain open until Monday, February 14, 2022.
BY HIZKEL HAILU
The Ethiopian Herald 13 February 2022
