Mind the Gap: Member Heterogeneity and the Governance Challenge of Refugee Cooperatives in Ethiopia

This short communication examines the strategic challenge that member heterogeneity raises for the governance of cooperatives operating in contexts of forced displacement. It uses unique panel data from UNHCR surveys of refugee cooperative members in Ethiopia, conducted in 2020 and 2023 and including retrospective information on members’ situation before joining. The findings suggest that belonging to a cooperative is associated with significant improvements in income, financial stability, physical security and life satisfaction. However, these associations vary depending on the type of cooperative: membership in meat-selling and farming cooperatives is associated with higher revenues, while membership in solar power and farming cooperatives is associated with greater life satisfaction. Of particular significance for cooperative governance, gender and vulnerability strongly moderate these outcomes: male and less vulnerable members appear to benefit more from cooperative participation. Furthermore, the results suggest a ‘honeymoon effect’, whereby members’ subjective well-being tends to decrease over time, pointing to the additional challenge of sustaining member commitment. Given the members-only design of the survey, these results are interpreted as perceived and estimated member-level benefits rather than causal impacts. These findings emphasise the potential and limitations of cooperatives as inclusive membership organisations for displaced populations, and call for gender-sensitive membership and governance practices.