Ethiopia’s cooperatives, unions model for Africa: Regional Director for Int’l Cooperative Alliance

Addis Ababa, February 7, 2025 (FMC) – Ethiopian Cooperatives and unions have the capacity to generate high-value products while contributing to market stability, according to Chiyoge Sifa, Regional Director of the International Cooperative Alliance.

The 11th National Cooperatives Exhibition and Bazaar which opened at Addis Ababa Exhibition Center on Thursday brought together over 350 agricultural cooperatives and unions from various regions of Ethiopia, featuring more than 110 agricultural and industrial products.

In an exclusive interview with ENA, Chiyoge Sifa indicated that the products which cooperatives produced locally possess significant potential not only to mitigate supply shortages and stabilize prices for consumers but also to produce exportable goods and conserve foreign exchange.

She noted that the government has provided substantial support to cooperatives and unions through various legal systems and reforms, facilitating market connections, and offering credit.

The regional director emphasized that the government initiatives have led to noticeable improvements.

Highlighting the importance of locally produced goods as a preliminary step toward entering foreign markets, she stated: “First and foremost, consuming local products is a key step towards economic independence for Ethiopia and Africa.”

“By doing this, we will reduce the importation of goods from other countries, which will assist in balancing our payments, stabilizing inflation, and ensuring monetary stability,” she explained.

Pointing out that African leaders have prioritized the manufacturing sector, which cannot be underestimated, the regional director stated “This aligns with the agenda of the African Union’s Agenda 2063, which emphasizes the need for transformation, development of agricultural value chains, and support for local manufacturing.”

She also urged cooperatives and unions to focus not only on quantity but also on quality and timely delivery.

She added “Today’s consumers are more discerning and seek value for their money, so our products must be competitive and of high quality, requiring investments in branding and marketing.”

In this context, she highlighted that cooperatives and unions in Ethiopia, which have begun producing consumer products using local inputs and resources, significantly strengthen the industrial sector.

Supported by government, these cooperatives and unions have successfully navigated various challenges in business development, demonstrating effectiveness in their business models, she said.

Having examined existing conditions, she remarked that the indigenous business models adopted by Ethiopian cooperatives and unions are becoming increasingly efficient and effective.