A new draft law in Ethiopia allows non-member investors to acquire up to 10% of a cooperative's shares, entitling them to dividends but barring them from voting or leadership roles. The Ethiopian Cooperative Commission, overseeing over 89,000 primary cooperatives, views this as a way to attract fresh capital while safeguarding core governance. This change marks a shift for cooperatives traditionally reliant on member funding.
The Ethiopian Cooperative Commission is drafting a new law that permits cooperatives to raise capital from sources beyond their membership and enter joint ventures with private entities. Under this proposal, non-member investors can purchase up to 10 percent of a cooperative's shares, receiving dividends but lacking voting rights or eligibility for leadership positions.
The Commission supervises more than 89,000 primary cooperatives, 435 unions, and five federations. Officials state that these provisions aim to inject fresh capital into the sector while upholding fundamental governance structures. This reform signals a market reckoning for cooperatives, which have historically depended solely on member contributions.
Published on January 17, 2026, by Nahom Ayele in Addis Fortune, the draft law seeks to modernize cooperatives amid evolving economic pressures.