The African continent has abundant natural resources, which can be converted in to valuable wealth. To explore and exploit the resources the government and the private sector can play crucial role. Since long ago the government showed commitment for the exploitation of the resource through allocating budget for research and study of resources and creating enabling environment to the private sector to play its own role.
Recently The Ethiopian Herald made an interview with National coordinator of the ‘Livestock and fishery Sector development project’ under the Ministry of Agriculture, Thomas Chernet (PhD). As to him, the project lasts for six years and financed by the World Bank and the Ethiopian government. It is implemented in seven regions namely: Tigray, in which the activities is halted at this time, Amhara, Oromia, Southern Nation and Nationalities, Benishangul, Gambela, and Sidama regions. It covers 58 woredas and 1755 kebele Administrations. The World Bank has financed 170 million USD and the Ethiopian government has contributed 6 million USD and the total amount is 176 million USD. The project started in 2017 and will continue up to 2024.
The objectives of the project, according to Thomas, are categorized under three main components. The first one is linking productive farmers to the market. This component earned the highest budget, 103 million USD. The component reaches the beneficiaries in four major value chains engaged in producing red meat, dairy, poultry, and fishery. The fifth value chain, Aquaculture, which hasn’t been begining at the moment. To implement the project, interest groups are organized. In this case, ‘Common Interest Group (CIG)’ with 15- 25 members that can work on one of those value chains is organized.
After forming the CIG, the project will finance 140 thousand birr. The project doesn’t provide the fund in cash rather it provides material supportive for implementing the project. It provides construction materials and different inputs and in such a way creating jobs for the beneficiaries is realized. In this regard, beneficiaries re required to contribute their own 10 percent of the input to their project before the budget is released. They will put a certain amount of money in the account with a representative of the CIG. This is just to let them to develop sense of ownership on the project.
To select the beneficiaries, the selection committee is organized in the respected regions. The committee is endorsed by the approval committee based on the criteria derived from ‘Project Appraisal Document (PAD)’. The criterion is that in the CIG, the group members should comprise 50 percent subsistence farmers, 30 percent women, and 20 percent unemployed youth so that they create job opportunity to them is possible. Within two years, the number of CIGs will be 10650 nationwide. This means there will be 150 thousand beneficiary members. It is expected that in the coming years around 1.2 million people will be benefited from the project.
Thomas remarked that as the project is a transformation pathway, there is the second phase business plan. In this stage, it is planned to transform those CIGs to be legally recognized cooperatives with 50 members. At the moment, the project has transformed CIGs to 179 cooperatives. At the end of the project phase in 2023, it is expected to have 360 transformed cooperatives.
The third step lays the ground for the establishing of the National Coordinator union which is the advanced aspect of both CIGs and cooperatives. In the case of union, Thomas said, 4-5 woredas can work together. However, the formation component is in the process. At the end of the project, it is expected that up to 60 unions will be formed.
Evaluating the performance of the project, Thomas said that CIGs in Tigray and Amhara regions are disrupted. Fortunately, the rest of the CIGs in other regions have registered marvelous achievements. Up to now, the CIGs have obtained about 846 million birr which enabled to boost their income. And their net profit is 364 million birr.
The second objective of the component is strengthening institution and programs in the Ministry. It helps to sustain and consolidate the CIGs. Without proper infrastructure it is hard to meet the objectives of the whole project. Therefore, to realize the objective master plan is prepared for each value chains. The government will use the master plan any time in the future.
The third component will touch the issues of environment, social safeguard and knowledge management for project administration. This component, strives all production activities should be environmentally and socially friendly. The beneficiaries also environmentally should be safe.
Regional Coordinators have also should put their foot print on the project. Mulugeta Tesfaye, Southern Nations and Nationalities Region Coordinator for Livestock and Fishery Sector Development Project, explained about the achievement of the project.
As to him, in the Southern Region, the plan focused on supporting small-scale farmers and unemployed youth to get employment for better future. Under the first component of the project’s objectives, 2340 CIDs are arranged in the region. Under these groups, there are around 27 thousand beneficiaries who are embraced by the project and supporting their lives. Of this figure, 42 percent of them are women beneficiaries and 22 percent are youth and the rest are small-scale farmers.
The Oromia Regional Coordinator for Livestock and Fishery Sector Development Project, Dereje Gudeta (PhD) on his part explained that, the project is implemented in 18 zones and 23 woredas in the region. In the past three and half years, the region organized 4140 CIGs. The groups have scored better achievement and increased their productivity. They have also adopted the new and updated technologies used it in the neighboring woredas.
Though the project registered better result in various regions, there are still a number of challenges that the project is facing. All agreed that most projects in the region faced similar challenges. Dereje and Mulugeta, reflected their opinion regarding challenges. Some of the major challenges they face are price inflation and the expensiveness of the necessary materials which the project needs. The budget that is planned to be allocated will be surpassed the past year because the price of the materials is sored. Even some of the materials cannot be found on the market.
Besides, the price of items fluctuates every time. Both stressed that the government has been involved in the project as it is the major stakeholder. In their respective regions, they achieved their planned goals and in some aspects even go beyond.
According to reports from the World Bank, there are beneficiaries who explained the benefit they gained from the project. In the Dale District of the Southern Region, Bizunesh Sinuna, is one of the 1.2 million beneficiaries.
“I dropped out from school due to lack of support from my parents to continue my education,” said Bizunesh Sinuna. “I tried to get job, but I couldn’t. Currently I joined the group and now I am participating actively in the day-old chick management business. I am very happy when I look into our initial result. This encourages me to exert my efforts for better success.”
BY DANIEL ALEMAYEHU
THE ETHIOPIAN HERALD 25 FEBRUARY 2022
