Performances and Challenges of Coop-;ratlVesi 'n--- Ethiopia: The Case of Werie Multipurpose Cooperative Union in Central Zone of Tigray.

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Date

2010-06

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Addis Ababa University

Abstract

his study is concerned with assessing the performance and challenges of Werie Multipurpose operative Union (WMCU) which is found in werie - Leke woreda of Tigray Regional State of ~iopia. The objective of the study is to assess the performances and challenges of the union in icourse of development. !'this purpose, the data requirements for the study were collected from different sources. The A1G/y data were collected from 126 member respondents of two sample primary member liiperative societies of the union and 50 randomly selected non-members from the residents of t~own of Edaga-Arbi. Moreover, the study made use of documents of the Union, like financial '~ents and audit reports as source of secondary data. In addition to this, FGD and Key irtltnant interviews were also important sources of secondary data. The data collected were ~ed using simple statistical analysis like frequencies, percentages, tables, financial ratio pnt"is and t-test with the help of a statistical package called SPSS (Statistical Package for Sodj Sciences). 'I'lte ftdings from the study revealed that trend of membership of the Union was increasing over rite IIrdy period but the financial performance was inconsistent in the periods under study . .A.iJiliq;on to a cooperative was found to increase the income of members and thereby co!11riutes to the well-being of member household that was manifested in the betterment of oxen ow!1eF'liip, food, housing, and clothing and in terms of ability to send children to school and use rnodellhealth services. In addition, WMCU has some benefits to the community (non-members) in stobiizing the local market and cost saving. On average, a person was able to save Birr 8.17 per !1101th given that slhe purchases the sampled items from the union instead of the private traders in the town of Edaga-Arbi. Regarding the challenges constraining the performance of the Union, the study has pointed out that embezzlement, limitations in the capacity of Management Committee or BoDs, lack of capital, unhealthy competition from private traders, absence of education and training and lack a/physical resources are the main ones.

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Challenges of Cooperatives Ethiopia:

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