Sustainable Energy and Water Technologies through Cooperatives in Ethiopia - PowerPoint Presentation

Sustainable Energy and Water Technologies through Cooperatives in Ethiopia Nekemte MelakuHead of the Commercial DepartmentOromia Coffee Farmers Cooperative Union

Country profile Ethiopia has an area of 1,104,300 square kilo meters (10th largest country in Africa) Agricultural land cover 306,620 sq.km Arable land coverage is10,000,000 hectares Share of Oromia (28.5%) 284,538 sq.km .The altitude ranges from the depressions 126 m below sea level to 4620 m a.s.l. Curent total population> 100 million Age structure (0-14 years: 43.94%, 15-64 years: 53.18% and 65 years and over: 2.88% ) Geographic access to electricity grid – 55%Over 14 million Ethiopian rural households demand for solar

The Cooperative Movement in Ethiopia (I) BackgroundEthiopia has a remarkable and long history of working together in indigenous cooperative organizations, like Iddirs and Equibs. History of cooperative has more than 60 years,Since the past two decades the government recognized the role and contribution of cooperatives in the socio-economic development of the country, providing further support to the sector. Types and Tires of cooperatives Major Types of cooperative (Agricultural, SACCOs , c onsumers , Housing and others) Tiers of coop in the country ( Primary cooperative society, Cooperative unions, cooperative Federation )

The Cooperative Movement in Ethiopia (II) Primary cooperativeAbove 89 thousand Coop. Union 388 Membership size Above 21 million (Women 31.7%)Capital $896 million USD Coop. Federation 3 Current status

Savings & Credit Cooperative Organizations (SACCO) Financing as an additional core service that cooperatives provide to members for production & non-production finance.SACCOs are well-functioning cooperatives which provide services that benefit both members; men and women as well as youths. SACCOs have been providing credit for investment and working capital for members. The gap between members’ investment and their saving, maintaining the increasing trend in SACCOs’ saving is critical.

Awach Saving and Credit Cooperative Society Limited – SACCO AWACH is a community based, not for profit savings and credit cooperative society –Established in march 2007 with only 41 members (8 Male, 33 female). Its main goal is to reach out and serve the lower and middle class of the society. Currently, there 10,305 active members (40% female and 60% male) with accumulated savings of ETB 130,828,249.83 As part of their Corporate Social Responsibility, they have assisted 50 children in paying their school fees, supported cancer patients and orphanage in terms of basic needs. They have constructed 7 public washrooms/toilets in the sub-city of Woreda in Addis Ababa and an ongoing dam/ bond worth ETB 1,050,000.00They too facilitate loan services for members who are interested in working on renewable energy and environmental protection. 

Initial Current Capital 34 Cooperatives22,503 Households 405 Cooperatives 370,000 Households USD 90,000 USD 23 million Established in June, 1999 Initial Current Oromia Coffee Farmers cooperative union (OCFCU) – Agri Cooperative Sector (I) Members 338 projects 228,341 beneficiaries Social projects

To sell members coffee to international market for better price. To improve and maintain the quality, productivity and sustainability of coffee production To assist the coffee farmers in providing with social services , information and capacity building To facilitate credit and pre-financing for the member cooperative societies. To represent the coffee farmers at nationalOromia Coffee Farmers cooperative union (OCFCU) – Agri Cooperative Sector (II)Services

Renewable energy in Ethiopia The energy sector in Ethiopia can be generally categorized into two major components: traditional (traditional biomass, wood usage) and modern (fossil fuel, hydroelectric power).Renewable energy including solar power lighting can meet the needs of local communities & provide them a new level of security/safetyDevelopment & Installation of renewable energy technologies is crucial for the country & the cooperative sector to address the following challenges: Reduction of costs for fuel (increase household income) since the solar energy cost is less than the traditional one, Preservation of the environment through reduction of deforestation Improvement of the health conditions by reducing health hazard smoke

Partnerships to increase social impact Fairtrade International is a non-profit, multi-stakeholder association (22 member organizations, three producer networks and 19 national Fairtrade organizations) that sets social, economic and environmental standards that progressively raise the bar in various sectors. They promote sustainable production, with farmers and workers at the heart of our model. WECF is an international network of over 150 women’s, health and environmental organizations, that implements projects for energy, climate, health and gender in over 50 countries. With political work on national and international level, recommendations in negotiation processes are given, imparting especially the perspective of women.

Project: Gimbi Energy Efficient Cook stove ProgrammeDistribute 40.000 Fuel saving stoves for 20.000 households Every house hold uses 2 different cook stoves; mirt and a rocket stove;Estimated annual emission reductions (43.800tCO2e/year)  

Traditional Improved

Carbon neutral coffee project OCFCU’s practical initiative reducing fuel wood utilization mainly obtained from endemic coffee shade Improve health of families specially women Increased income of small coffee farmers to cope with impact of climate change Income from premium of Fairtrade Carbon Credit (FCC) To improve coffee market with better price by additional certificationEnhance participation of members through given services

Installation  and promotion of decentralized energy and water technologies through the qualification of cooperative technology ambassadors     Objectives: Increase living standards through new job opportunities and trainings; Access to sustainable energy for cooperatives; Development of new financial mechanisms (microfinance) to promote entrepreneurship by providing financial support to cooperatives, small organizations and households to invest in renewable energy and clean water sources; Establishment of a ‘water and energy department’ in both OROMIA and AWACH cooperatives to build and strengthen a local energy network.

Project Idea The project seeks to support the empowerment of existing actors and. The aim is to strengthen the cooperatives as well as households in order to plan, finance and operate the energy and water supply themselves to keep the know-how decentralised at the local region . Why working with cooperatives : Inclusive approach; Bottom-up approach; Rooted in the community, particularly in rural areas; Strengthen local empowerment

Activities Needs assessment; Training sessions on energy and water technologies (including briquetting, energy efficient stoves, photovoltaic, solar pump, eco san toilet and water tanks) for up to 30 cooperative members from different geographic regions ( at least 50% women ); Intensive trainings with 10 selected participants; Installation of sustainable energy technologies , maintenance of these technologies (i.e. briquette machine, PV module, etc.) , as well as marketing tools for the dissemination of technologies; Planning of potential financial mechanisms ; Development of policy recommendations for a decentralized energy supply and access to safe water

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