High-ranking government officials, CEOs of banking and fintech companies, notable business leaders, shareholders, and distinguished guests gathered at the Sheraton Addis’ Lalibela Hall on Tuesday to celebrate the Cooperative Bank of Oromia’s 20th anniversary. The event was a testament to the bank’s remarkable journey, combining lively celebration with reflections on its transformative impact on Ethiopia’s financial sector.
Background of cooperative bank in Ethiopia
The bank’s extraordinary history begins with the visionary Haile Gebre Lube, whom many consider the founder of Ethiopia’s cooperative movement. He promoted a groundbreaking notion 20 years ago: that the most effective way to combat poverty was through collaboration. Through community members’ contributions of up to 100 ETB each, his grassroots mobilisation effort was able to gather an impressive 750,000 ETB in seed capital.
The majority of the original shareholders were cooperative societies, and in 2002 this people-powered movement formally established a project office. The bank started operations in March 2005 after obtaining its commercial licence in October 2004. In keeping with its cooperative origins, cooperative societies still own more than 55 percent of the bank to this day.
Accolades for Cooperative Bank of Oromia
Mamo Mihretu hails the organisation as one of the most inventive and rapidly expanding financial institutions in the country. “The Cooperative Bank of Oromia exemplifies modern banking through strong leadership, driving financial inclusion while maintaining its cooperative principles,” he stated.
The governor praised the bank in particular for its compliance with national development goals and responsiveness to regulatory guidance. “The bank’s leadership has demonstrated exceptional commitment to implementing government directives and supporting economic progress,” Mamo noted. “During our transition to a market-based foreign exchange system, which introduced new market dynamics, Cooperative Bank stood out in its swift and effective adoption of these changes.”
Cooperative Bank of Oromia’s significant milestone
The bank’s mobile wallet, Kopay e-Birr, has 17 million users and has grown to become one of Ethiopia’s leading platforms, handling 3 trillion Birr in mobile transactions. With its digital, collateral-free loan offerings known as Michu, the bank has empowered over 1.2 million MSMEs, greatly expanding access to capital for small businesses and entrepreneurs.
Powered by Kifiya’s Qena, an AI-driven digital lending platform created in collaboration with the Mastercard Foundation, Michu is Ethiopia’s first uncollateralised digital lending product.
“This platform strengthens collaboration between fintechs and traditional banks, representing a breakthrough in unconventional banking solutions for Ethiopia,” said the governor.
How technology is driving Cooperative Bank of Oromia’s growth
CEO Derbe Asfaw highlighted how the bank’s integration of cutting-edge technology and digital solutions is changing living standards. Under its direction, the bank has introduced several innovations, such as the first Coop Remit, a blockchain-based money transfer service in Ethiopia, and the SACCO-Link application, which allows cooperatives and unions to participate in digital banking.
The Cooperative Bank of Oromia has experienced significant financial growth, with deposits reaching ETB 169.45 billion and total assets now standing at ETB 189.4 billion, representing a robust ETB 52.3 billion increase over the previous nine months. With 15,000 employees and 745 branches, the bank has established itself as a major force in Ethiopia’s banking industry.
The bank’s growth of environmentally friendly branches that run on renewable energy is another indication of its dedication to sustainability. Under the “Project 20 for 20th Anniversary” initiative, the bank has prioritised community-driven projects and social responsibility throughout its 20th anniversary celebrations.
The Cooperative Bank of Oromia is a key player in Ethiopia’s changing banking sector because it is dedicated to promoting financial inclusion and economic growth throughout the nation.