WHEREAS, it has become essential to establish and manage cooperative societies for those persons with common interests by bringing together their finance, knowledge, resources, and labor voluntarily to meet their common economic, social, and cultural needs and other aspirations, which would then allow mutual support and create savings;

WHEREAS, cooperative societies are required to contribute to the country’s economic and social development and to be nationally and globally competent through the creation of employment opportunities by supporting production and productivity increments in both rural and urban settings, adding value to members’ produce, creating financial and market linkages, and shortening unnecessary market chains, in a way that helps sustain one economic community in accordance with our Constitution through a uniform Cooperative Societies Proclamation;

WHEREAS, it has become necessary to cause the cooperative societies to play a pivotal role in the free market economic system by maintaining their guiding principles and unique features;

WHEREAS, it is necessary to establish and strengthen cooperative societies that are directed and managed by members and also to ensure their rights, ownership, and benefits;

WHEREAS, it has become necessary to promulgate laws on the establishment and management of cooperative societies by replacing the existing Cooperative Societies Proclamation in order to achieve the objectives of the cooperative society;

NOW, THEREFORE, in accordance with the provisions of Article 55(6) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: