Last night, the Sheraton Addis’ Lalibela Hall buzzed with energy as high-ranking government officials, banking and fintech CEOs, prominent business leaders, shareholders, and distinguished guests gathered to celebrate the Cooperative Bank of Oromia’s 20th anniversary. The event was a testament to the bank’s remarkable journey, blending lively celebration with reflections on its transformative impact on Ethiopia’s financial sector.

The bank’s remarkable journey traces back to visionary Haile Gebre Lube, widely regarded as the father of Ethiopia’s cooperative movement. Two decades ago, he championed a revolutionary idea: that cooperation represented the most powerful weapon against poverty. His grassroots mobilization effort saw community members contribute up to 100 ETB each, collectively amassing an impressive ETB 750,000 in seed capital.

This people-powered movement formally established a project office in 2002, with cooperative societies forming the majority of initial shareholders. After securing its commercial license in October 2004, the bank commenced operations in March 2005. Today, maintaining its cooperative roots, over 55% of the bank’s ownership remains in the hands of cooperative societies.

Mamo Mihretu praised the institution as one of the nation’s fastest-growing and most innovative financial institutions. “The Cooperative Bank of Oromia exemplifies modern banking through strong leadership, driving financial inclusion while maintaining its cooperative principles,” he stated.

The governor particularly commended the bank’s responsiveness to regulatory guidance and its alignment with national development goals. “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.” 

With a customer base of 17 million, the bank’s mobile wallet, Coopay e-Birr, has become one of Ethiopia’s top platforms, processing mobile transactions totaling 3 trillion Birr. The bank has empowered over 1.2 million micro, small, and medium enterprises (MSMEs) with its digital, collateral-free loan offerings called Michu, significantly enhancing financial access for entrepreneurs and small businesses. Michu is Ethiopia’s first uncollateralized digital lending product, powered by Kifiya’s Qena, AI-driven digital lending platform developed in partnership with Mastercard Foundation.

“This platform strengthens collaboration between fintechs and traditional banks, representing a breakthrough in unconventional banking solutions for Ethiopia,” said the governor.

CEO Derbe Asfaw highlighted the bank’s role in transforming living standards by integrating advanced technology and digital solutions. Under its leadership, the bank has launched several innovations, including the SACCO-Link application, which enables cooperatives and unions to engage in digital banking, and the first Coop Remit, a blockchain-based money transfer service in Ethiopia.

Financially, the Cooperative Bank of Oromia has seen substantial growth, with total assets now standing at ETB 189.4 billion and deposits reaching ETB 169.45 billion, reflecting a strong ETB 52.3 billion increase in the last nine months. The bank operates 745 branches and employs 15,000 individuals, positioning itself as a key player in Ethiopia’s banking sector.

The bank’s commitment to sustainability is also evident in its expansion of eco-friendly branches, which operate on renewable energy. Throughout its 20th-anniversary celebrations, the bank has focused on social responsibility and community-driven projects under the initiative “Project 20 for 20th Anniversary.” 

As it looks to the future, the Cooperative Bank of Oromia remains committed to driving economic development and financial inclusion across Ethiopia, making it a vital institution in the country’s evolving banking landscape.