Cooperatives play an irreplaceable role in economic and social development. There are many different types of cooperatives organized in our country. The economic potential of both rural and urban populations is low. Cooperatives play an important role in alleviating the needs of the community, and there is a need to strengthen the existing federal and state governments that provide and register extension services for cooperatives.

To provide a clear overview of the current and future types of cooperatives and organizational standards, feasibility study, business plan and bylaws. Cooperatives need to be modernized with a uniform organization, registration and operating system. Improving the role and responsibilities of members, management, and employees by making members and executives aware of it and serve as a work guide. Due to the need for cooperatives to be informed about capital formation and alternative financing and the distribution of dividends and loan management, mergers, disbursements and disbursements and special rights.

Due to the need to establish clear procedures for cooperatives’ interactions with members, the appropriate authority, stakeholders, capacity building, and each other. “The Ethiopian Cooperative Commission has issued this directive in accordance with the authority given to it by Article 76 (3) of the Cooperatives Proclamation No. 985/2009.