Walter Mswaka, Rollins College - The Evolving Role of Cooperatives in Ethiopia's Coffee Industry

The coffee industry is vital to Ethiopia, but how is it evolving? Walter Mswaka, associate professor of social entrepreneurship at Rollins College, examines the role of cooperatives. Faculty Bio: Walter Mswaka, PhD, is Associate Professor of Social Entrepreneurship at Rollins College in Winter Park, Florida. His areas of specialization include: Social Entrepreneurship; Entrepreneurial Finance; Business Strategy; and Non-Governmental Organizations (NGOs).Professor Mswaka is an academic and social enterprise practitioner with over 20 years of experience working with social enterprises in various socio-economic contexts around the world. This includes providing practical hands-on support and technical advice to individuals and organizations involved in social enterprise in the UK, Brazil, Nepal, Ethiopia and Zambia, contributing to public understanding of social enterprise and community resilience through research and publications in peer reviewed journals. Transcript: Ethiopia is the largest coffee producer in Africa with over 10 million people involved in the production of coffee. Ethiopian coffee is valued globally and is a vital crop to the Ethiopian people, given the large percentage of households that depend on coffee production and sales.The coffee-marketing cooperatives of Ethiopia represent the very essence of the coffee business in that country, contributing to economic development by increasing incomes and employability, improving living conditions and stimulating grassroots economic activities. However, despite their importance, the cooperatives face challenges of resilience and sustainability. My research has shed new light on how they operate and deliver value, and how they are affected by national, internal and external stakeholders and institutional rules. We examined the operations of three small coffee-marketing cooperatives in southwest Ethiopia, with a focus on their internal governance challenges that include structure, communication and interactions with middlemen. We employed a multiple-case study approach involving face-to-face focus-group interviews with the management committees of the cooperatives--separately from the members, so that we could actually see what’s going on.We looked at five themes that influence operations: structures of governance, incorporating board management identity and make-up; selection of management committee members; the role of board and management committee members; the relationship between board/management committee and members; and board understanding of financial sustainability and influence of external stakeholders.Our findings illustrate that Ethiopian cooperatives are embedded in the communities they serve and provide a platform for members to benefit financially. While current literature suggests that the cooperatives have democratic governance models, closer scrutiny reveals that these organizations have complex governance structures. This suggests the need to understand better cooperative operating environments and the various external influences obtruding governance operations.Our findings have had an impact on both increasing coffee production and increasing the number of women involved in the cooperatives. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.academicminute.org