Oikocredit and the cooperative network: 50 years of investing in tomorrow

From humble beginnings to global impact, Oikocredit’s journey embodies a commitment to cooperative principles that have transformed communities in 52 countries around the world.

So, what is a cooperative?

A pioneering cooperative story

What’s the word everyone should be talking about this year? Cooperatives.

The roots of the cooperative movement stretch back to 1761, when a group of Scottish weavers in Fenwick sold oatmeal at a discount, forming the first recorded cooperative. The movement gained momentum in 1844 with the Rochdale Pioneers, who laid down principles still followed today: fairness, democracy and community. In Germany, Raiffeisen and Hermann Schulze Delitzsch launched credit unions around the same time, setting the stage for a global movement (source: International Cooperative Alliance).

Oikocredit’s history as a cooperative

Oikocredit emerged from this rich tradition as one of the world’s first social impact investors. Founded in 1975 following a World Council of Churches meeting amid global unrest, the cooperative issued its first two loans in 1978 – one to support development in Vellore, India, and another to FEPP in Ecuador. This marked the beginning of a journey that would eventually impact millions of lives.

For half a century, Oikocredit has been investing the capital of mission-driven individuals and organisations into sustainable projects that benefit low-income communities. From business owners in Nairobi to volunteers in Germany, our global community is united by the belief that investing can and should create long-term value, not short-term profit.

The cooperative identity

Being a cooperative is fundamental to Oikocredit’s identity and success. We are not just a cooperative by name – we are one in practice. Guided by our members, we make decisions that balance the needs of people, planet and community. Unlike shareholder-driven models, our structure allows for inclusive governance, transparency and participatory decision-making. This has enabled us to stay focused on impact, even in times of economic uncertainty.

We invest with “patient capital”; investments where others may hesitate, particularly in underserved areas where the potential for social return is high. Through our Cooperative Identity Process, launched in 2024, we continue to reinforce these values and remain true to the principles that have defined our organisation for half a century.

A global network of cooperative impact

As we look back on 50 years of impact, we celebrate the powerful partnerships that have created change around the world. At the heart of Oikocredit’s journey are our support associations – local member groups that amplify the power of cooperative investing and anchor our impact in communities worldwide.

A standout example is our partnership with CARD Cooperative in the Philippines. CARD goes beyond providing microfinance, by transforming rural communities through inclusive, cooperative development. In Ecuador,  we’ve partnered with Atuntaqui Cooperative to expand access to affordable housing and financial services. And through  the AgriGRADE programme – supported by the Netherlands Ministry of Foreign Affairs – we take a systematic approach to building stronger, more effective cooperative landscapes.

These partnerships show that cooperatives don’t just act alone, they form a global network with shared purpose. This year has been declared the International Year of Cooperatives by the UN to raise awareness of the work of cooperatives and to emphasise the cooperative business model. For 50 years, we have been an important actor in this network, pioneering approaches that have inspired many others. Our engagement with leading cooperative bodies like the International Cooperative Alliance (ICA) and our participation in the CM50 network further underline our commitment to advancing cooperatives as a resilient, socially responsible business model.

Building resilient communities for the future

So… why join a cooperative? Because cooperatives are essential.

Watch our special 50th anniversary video to discover more about Oikocredit’s journey and the power of cooperative impact around the world. To stay up to date with all our anniversary events, videos stories and community highlights, visit our anniversary page on our website. Oikocredit’s story is one of cooperation, innovation and shared progress.

And we’re just getting started.