WHEREAS, it has become necessary to establish cooperative societies which are formed by individuals on a voluntary basis and who have similar needs for creating savings and mutual assistance among themselves by pooling their resources, knowledge, and property;

WHEREAS, it has become necessary to enable cooperative societies to actively participate in the free market economic system;

WHEREAS, it has become imperative to issue a comprehensive legislation by which cooperative societies are organized and managed in order to achieve the above-mentioned objectives;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: