Challenges and Prospects of Cooperatives in Ethiopia with Reference Sough Gondar Zone- Ethiopia

Abstract

Cooperatives in Ethiopia are playing an active role in the fields of banking, input and output marketing, agro-processing, storage, dairy, and many other social and economic activities. Cooperatives have inherent advantages in tackling the problems of poverty alleviation, food security and job creation. They are also considered to have immense potential to deliver goods and services in areas where both the state and the private sector have failed. Serious efforts are being made to strengthen capital of cooperatives base through increasing members’ subscription, mobilization of savings and value addition. The establishment of agricultural cooperative in Ethiopia is significantly associated with and responsible to overcome the problems that individual farmer could not solve solely. The cooperatives were thus permitted to exchange their members’ product, improve market access and directly provide their produce to the market through improving the bargaining power of farmer members. Ethiopian Government has also made efforts for cooperatives development that can be taken as opportunities. However, studies show that the growth of cooperatives in different parts of the country is not up to the expectation. Therefore, this study was conducted with the objective of assessing the challenges and prospects for agricultural cooperatives in south Gondar Zone, Ethiopia. In order to conduct the study, primary data were collected from the members of sampled cooperatives and supported by secondary data. The data were analyzed using both qualitative and quantitative techniques. The findings of the study revealed that there are ample prospects for the growth of the agricultural cooperatives like the legal framework; support of the cooperatives union; positive members’ attitude towards cooperatives; women involvement in leadership. However, agricultural cooperatives in the study area faced many challenges including lack of sense of ownership and lack of follow up and control system by members; lack of commitment, members little awareness about cooperatives, low participation of members in their cooperatives, mistrust; failure of management committee to serve the members’ interest; management committees’ little knowledge about cooperative proclamations, rules and bylaws, limited training access; limited professional support and follow up to cooperatives; failure to adapt the experience of other model cooperatives; little effort to promote cooperative policies, strategies, proclamations, rules and regulations, lack of commitment to find out the problems of cooperatives and fill the gap; fail to organize and provide adequate, quality and timely information on cooperatives. The above challenges may be easy if educated cooperative professionals were invited to lead the sector. Training to office bearers and education to the members pertaining to their specific needs is another important aspect for cooperatives. Keywords: Cooperatives in Ethiopia, Agricultural cooperatives, challenges and prospects of cooperatives in Ethiopia. Cooperatives in Sough Gondar in Ethiopia. DOI : 10.7176/EJBM/11-34-03 Publication date: December 31 st 2019