Ethiopia Calls for Stronger Synergy Between SACCOs, Agriculture to Bolster Africa’s Food Security

Addis Ababa, June 26, 2025 (ENA)—Ethiopia’s State Minister of Agriculture, Sofia Kassa, emphasized the vital need to foster strong synergy between Savings and Credit Cooperatives (SACCOs) and the agricultural sector as a cornerstone for achieving food security at both national and continental levels.

A four-day 2025 Africa SACCO (Savings and Credit Cooperatives) Regulatory Round Table conference is recently underway in Ethiopia, in Addis Ababa.

The conference brought together senior government officials, SACCO regulators, industry experts, development partners, and cooperative leaders from across Africa and beyond to deliberate on enhancing regulatory frameworks for Savings and Credit Cooperatives (SACCOs).

Speaking at the launching session, Agriculture State Minister Sofia Kassa said that agriculture in Ethiopia remains the backbone of the economy, employing over 65 percent of population with its significant contribution to exports, food security, and rural livelihoods.

 

The sector is currently undergoing transformation through irrigation, with increased focus on commercialization, climate-resilient production, and agricultural value chains, she added

However, the state minister stated that financial constraints facing the sector--unaffordable financial services and inaccessibility to finance remain challenges to boost productivity and expand agro-processing investments thereby undermining the efforts of agricultural transformation.

In this regard, SACCOs are critical financial systems that empower farmers, agribusinesses, and rural communities to thrive, she stressed.

She added that “the synergy between agriculture and cooperatives is not only strategic; it is essential for both national and continental food security,” stating that the newly amended agricultural policy of Ethiopia emphasizes the urgent need to strengthen and modernize cooperatives as a critical instrument for transforming agriculture.

On his part, African Confederation of Cooperative Savings and Credit Association (ACCOSCA) Executive Director, George Ombado emphasized the power of cooperatives for inclusive transformation in the African continent.

 

For him,  the SAACOs business model is meant to empower the people of Africa, he added.

The executive director pointed out that SACCOs are the vehicles and have the responsibility to support inclusivity in the continent by maintaining the highest standard of governance, transparency and accountability.

“We have the responsibility among the SACCOs, which are good vehicles to support inclusivity in the continent and to maintain the highest standard of governance, transparency and accountability,” he said.

ACCOSCA is committed to encouraging people to build a continent where the people can trust the SACCOs, he noted.  
Ethiopian Cooperative Commissioner, Shiferaw Shigute on his part said that the SACCO reform in Ethiopia is no longer a concept; it is a movement in motion.

 

The commissioner stated that Ethiopia has 23,659 primary SACCOs, with 79 percent located in rural areas and 21 percent in urban centers and organized under 125 SACCO unions, collectively serving 8.3 million members, of whom 48 percent are women.

SACCOs mobilize large-scale savings and finance critical to agriculture, small businesses, transport, and housing, among others, he noted.

The commissioner acknowledged the challenges that constrain the full potential of SACCOs such as limited membership and inactiveness in many cooperatives, especially among youth characterized with informal working habits and weak governance, among others.

 

To overcome these challenges, Ethiopia has launched a far-reaching national SACCO reform agenda, in line with the Homegrown Economic Reform Program and the 10-Year Development Plan, he added.

The commissioner further elaborated that modernizing legal and policy frameworks, strengthening governance and oversight mechanisms, expanding digital financial services and diversifying savings and loan services are tailored to real economic needs are among the reforms.

He also pointed out that the reforms will reposition SACCOs as dynamic, inclusive, and growth-oriented institutions to serve farmers, youth, entrepreneurs, and the vulnerable not just with credit, but with opportunity and dignity.

Recognizing that greater achievement cannot be done in isolation, he stressed that platforms like SACCOs are vital to foster South-South collaboration, enable peer learning, and collectively address shared challenges.

Finally, he reaffirmed Ethiopia’s commitment for learning, sharing, and co-creating solutions that will advance the national agenda and collective dream for an African cooperative renaissance.