Somali Region Expands Cooperatives to Boost Agriculture and Trade

By Maher Ahmed - Reporter

Ethiopia, 12 April 2026 Authorities in Ethiopia’s Somali regional state are expanding and reforming cooperative systems to strengthen agricultural production, improve market access and support economic self-reliance, officials said.

The Agency for the Development and Promotion of Cooperatives said it has introduced a new strategy to reorganize farmers, livestock traders and small businesses into structured cooperatives capable of engaging in both domestic and international trade.

“We are working to organize communities into cooperatives and company-like structures to boost production and improve livelihoods,” said Dahir Sheikh Abdi, head of the agency, in an interview with the region’s state media aired on Saturday.

The reforms come as global food supply disruptions and economic pressures have increased the need for local production and self-sufficiency.

Officials said the region has strong agricultural potential, with fertile land, rivers and favourable rainfall, particularly in areas such as Fafan, which could support increased crop production if properly organized.

The agency has established and formally registered a growing number of cooperatives, providing them with governance structures, training and documentation to operate as formal institutions.

“Our role is to organize, educate, legalize and build the capacity of cooperatives,” Dahir said.

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Authorities are also working to connect cooperatives with financial institutions, including banks offering Islamic-compliant financing, although access to funding remains limited and under development.

Women are among the most active participants in the cooperative system, often organizing themselves into savings groups and small enterprises, officials said.In addition to agriculture, the agency is targeting the livestock sector, aiming to organize traders into cooperatives to address long-standing challenges such as unstable markets and limited access to buyers.

Public awareness of cooperatives has improved significantly following recent reforms, according to officials, who said previous systems were poorly understood and lacked structure.

Several cooperatives have already begun accessing financing through banks, including the National Bank and Awash Bank, with eligible members receiving financial support based on defined criteria.

Officials said a major training program is underway, with more than 400 participants undergoing capacity-building courses in partnership with Jigjiga University.

Participants are expected to return to their communities to support awareness campaigns and strengthen cooperative systems.

Authorities said the reforms are part of broader efforts to modernize the region’s economy and improve resilience in the face of global economic and food supply challenges.