Volume : IV, Issue : III, March - 2015

Growth and Challenges of Cooperative Sector in Ethiopia

Dr. Muthyalu Meniga

Abstract :

According to the theories, among the three sectors i.e. Public, private and cooperative sectors probably cooperative sector, because of people participating directly in its process, can work better for economic development and can be considered as countries’ economic developer example by job creation, poverty reduction, improvement of agricultural production and productivity and other benefits. In this paper an attempt has been made to assess the growth and challenges of cooperative sector. For the purpose of carrying out the study, the data have been collected from various secondary sources such as annual reports, Bulletins, progress reports, and audit reports from the concerned cooperative offices. The descriptive statistical techniques were used for data analysis. The study shows that the number of cooperatives has shown a significant increase of 174% from 20437 cooperatives in 2006 to 56044 cooperatives in 2014 (up to May) in Ethiopia. Multipurpose cooperatives, saving and credit cooperatives, consumer cooperatives, and housing cooperatives are the most important types in terms of number of establishments. On average, the growth in the number of cooperatives was about 22% annually from 2006–2014. The members’ composition grew at 152 percent, and share capital rose by 965 percent between 2006 and 2014. The cooperative unions increased from 112 in 2006 to 294 in 2013. In Tigrai region a huge percentage comprises of Rural saving and credit cooperatives (24.33%), and Multipurpose cooperatives (20.33%). This paper discusses some of the challenges (lack of capital, functional weakness, absence of good governance, lack of cooperation between cooperatives, lack of training, lack of managerial talent, and lack of integrity among the management) that hinder cooperatives from maintaining certain level of accountability. It is very important to develop the structure, systems and proper strategies that can allow cooperatives to build their strength and ing lasting benefits to their members. With a good framework and an efficient oversight and monitoring structure can help the cooperatives in discharging their accountability and transparency to their members, donors and regulators.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr. Muthyalu Meniga Growth and Challenges of Cooperative Sector in Ethiopia International Journal of Scientific Research, Vol : 4, Issue : 3 March 2015

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