Company Description:

Awach SACCOS Ltd is legally registered and recognized an organization in the Federal Democratic Republic of Ethiopia (registration number 147/98) and it is registered on September 20, 2016, by Federal Cooperative Agency (FCA) with registration number 005/09 to work in Addis Ababa and Finfinne Liyu Zone of Oromia Region, around Addis Ababa. It is a model community based primary cooperative that has 76 employees (30 male and 46 female) and improves more than 25,000 people livelihood through creating access of loans for 5,136 members, out of which about 42% beneficiaries are female. Awach SACCOS is shooting up in members' growth, saving,  loan disbursement and profit with an average increment of more than 80% yearly for the last three years. Awach introduced children saving and benefits about 1000 children and their savings are about 1,009,395 Birr. It has won the attention of many government sectors and became the center of excellence; many university students, other cooperatives and unions are being visited frequently. Besides that, Kenyan’s cooperative members and the International Co-operative Alliance (ICA) delegates visited Awach SACCOS.

Awach is a pioneer to become the first member of ICA and an associate member of the African Confederation of Cooperative Savings and Credit Association (ACOSSCA) from Ethiopia. It paved way for Oromia Coffee Cooperative Union to be a second member of ICA from Ethiopia. It has an unlimited contribution to the promotion of cooperatives through celebrating world cooperative day, National Cooperatives’ exhibition, bazaar, and symposium. Awach is a leading cooperative in taking part in the development and taking the initiative role in accomplishing social responsibilities. As a result, it has got three certificates of recognition for contribution in the development of cooperatives nationwide and four certificates of appreciation and significant contribution for the events of ‘National Cooperatives’ exhibition, bazaar, and symposium from Federal Cooperative Agency of Ethiopia (FCA). Addis Ababa Cooperative Agency also awarded three recognition certificates due to Awach’s great contribution to the accomplishment of social responsibilities and celebration of World Saving and Credit Day.
 

1.2  Vision of Awach

To be a World-Class Saving and Credit Cooperative Society in 2030

1.3  Mission of Awach

Improve socio-economic conditions of members & other people through mobilizing saving and creating access to credit & asset building using relevant technology and highly motivated staffs in consideration of social governance aspects.

1.4  Objectives of Awach

• Build a saving the culture and facilitate credit with a fair interest rate for members;
• Improve socio-economic conditions  of members & other people by equipping with entrepreneurship & business development skills through training;
• Encourage businesses that address climate, environment and social governance aspects;
• Contribute to poverty reduction through creating employment opportunity especially for women and youth

1.5 Principles and Core values of Awach

According to the ICA statement on the cooperative identity (1995), cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others. Cooperative principles are guidelines by which cooperatives put their values into practice.

According to Baarda (2006), cooperative principles are fundamental and immutable doctrine or tenet that defines and identifies distinctive characteristics of the cooperative organization. They are the settled rules of action and are identified as the coordinates that go to make a cooperative society and as such are indispensable. Accordingly, Awach SACCO operates under seven principles which are formulated by the ICA in 1995: 

1.5.1 Principles

• Voluntary and Open Membership: open to all persons without any  discrimination;
• Democratic Member Control: controlled by its members with equal voting rights; 
•  Member Economic Participation: contribute equitably;
• Autonomy and Independence: self - help organization;
• Education, Training, and Information: to the development of the cooperative;
• Cooperation among Cooperatives: working together through local, national,        regional and international structure;
• Concern for the Community: for the sustainable development of its communities.

1.5.2 Core Values

• Accountability
• Dedication
• Integrity
• Impartiality
• Respect
• Teamwork

1.6 Motto/Slogan

Saving is modernization. Save to change!

1.7  Awach SACCO Objectives.

• Encourage and develop a saving culture among members
• Provide members loan with a fair interest rate
• Improve members economic, social, and financial conditions 
• Provide members savings and credit service and other products required by members
• Save the members from unnecessary loan interest
• Contribute to the second growth and transformation plan of Ethiopia and play its role in the national economic development

2. ORGANIZATIONAL SET UP

The governance structure of Awach is led by a representative council elected by the general assembly of all cooperative members. The representative council is constituted by all members who generally meet once a year to discuss general policies, laws and procedures, challenges and strategies to bring out the best possible benefit for individual cooperative members. Each member of the general assembly is technically a part-owner of the cooperative through purchasing a share value that is usually available during membership registration. Other routine company activities are regularly managed by the board and the general manager and other staff.

In conjunction with regular staff, three independent committees support the overall organizational function namely the control committee responsible for general oversight check and balance, loan committee (basically in charge of appraising loan applications) and a social committee who have an important role in handling social issues of ASACCOS.

3. AWACH SERVICES

3.1 Members mobilization

As stated in the introduction, Awach started with only 41 members in 2007 G.C. With its great effort currently Awach has more than 20000 members.

3.1.1. Awach SACCO’s Requirement for membership

Any individual could become a member of Awach SACCO if:

• S/he  is eighteen (18) or above
• S/he is capable to pay the registration fee, minimum share amount and regular saving
• S/he accepts and abided by the cooperative rules and regulations.
• S/he is willing to execute his or her responsibilities
• S/he lives in the operation areas of Awach SACCO and has regular income
• S/he could bring two passport size photograph
• S/he could bring a copy of the kebele identification card.
• S/he is not stripped of his/her legal rights

3.1.2. Registration Fee

          Any person should pay Br. 1000 in one payment as a registration fee. The registration fee is used to cover awach SACCO expenses.

3.1.3. Share

           The value of one (1) share is Br. 1000 and a member has to buy at least two shares    (i.e., 2000 birr).

3.2 Saving service

3.2.1 Compulsory Saving

Any person who is a member of the cooperative should pay Br. 350 or 10% of his/her income regularly once in a month. This compulsory saving could only be withdrawn when there is a termination of membership.

3.2.2 Voluntary Saving   

A member of the cooperative could save any amount of money as a voluntary saving that could be withdrawn at any time.

3.2.3 House saving

A member saves and takes credit to buy, construct or maintain a house. A member could borrow up to 1,000,000 (One million) Ethiopian birr as a house loan.

3.2.4 Automobile Saving

A member could save for a car loan. A member could borrow up to 600,000 (Six hundred thousand) Ethiopian birr to buy an Automobile.

3.2.5 Transport car Saving

Members could save and borrow up to 800,000 (Eight hundred thousand) Ethiopian birr to buy a car for business.

3.2.6 Children saving

To make a society develop the habit of saving, it is important to include every member of society including children. In addition to saving, awach SACCO is educating parents and children to share and spend money properly. In awach SACCO children through their parents or guardian save money without any set requirements.