In Ethiopia, Policy LINK Facilitates Regional IP Learning Event in Jigjiga, Somali Region
Participants visit a private vet clinic owner who introduced mobile services and runs a private vet drug shop.
The third Feed the Future Ethiopia Implementing Partners Learning Event was conducted in Jigjiga from April 5-7, 2023. The theme of the event was “Private Sector and Market System Development,” with the overall objective of sharing practical experiences with private sector development in the country’s pastoral areas and fostering collaboration, coordination, joint learning, and implementation among implementing partners.
The specific objectives of the April learning event were: 1) to share ideas and build understanding about how Market System Development (MSD) approaches and private sector partnerships can be applied in thin markets and fragile contexts, such as the lowland regions of Ethiopia; 2) to share ideas and build understanding of how MSD approaches can support youth to successfully navigate pathways to wage employment or self-employment, with a focus on youth transitioning out of pastoralism; 3) to share and leverage the USAID Transform WASH “Market-based Sanitation Model” for water activities and sanitation, and 4) to increase cross-activity collaboration to stimulate rural economic growth and learning about private sector and market systems development.
Addressing the participants, Ahmed Ismael, Advisor to the President of Somali Region, said USAID is the Region’s development partner, and there has been significant progress through its implementing partners’ interventions. He further requested for more support given the magnitude of the problem, especially with respect to climate change, water management, livestock management support to pastoralists, and market systems and private sector development.
During the three-day event, participants were able to learn about activities of implementing partners, share ideas as well as visit activity sites, including that of Ethiopia Resilience in Pastoral Areas (RiPA) North, Transform WASH, and Resilience Food Security Activity (RFSA) around and in Jigjiga.
More than 50 implementing partners and USAID staff attended the event.
As part of the learning event, two field groups traveled to Babile, some 70 kilometers from Jigjiga, where they were able to see RiPA North’s interventions, such as a goat aggregation enterprise, where a trader adopted new buying relationships with suppliers; a private vet clinic that introduced mobile services and runs a private vet drug shop; a private sector agro-dealer shop for chemicals, seed, and farm implements; a milk collection enterprise with improved hygiene and quality of milk; a fodder seed production enterprise and Savings and Internal Lending Community group, as well as a Private Service Provider (PSP). They also visited and discussed with a female agro-dealer and a new local business development service (BDS) provider that sells services to local enterprises to boost enterprise growth and, ultimately, employment.
In Lafaciise, another group visited a vet pharmacy, an agro-input retailer; an agent known as Lersha, a digital platform that provides integrated services for producers; Liberty College, a privately owned technical training college in Jigjiga; and MicroMentor, a digital platform that connects microenterprises with mentors at other, more established businesses.
In Gursum, participants visited and discussed with a mason installer, a new local BDS provider, an agro-input retailer, the first digital sharia-compliant loan product in Ethiopia, a platform known as CommercePal that facilitates loans and a digital kiosk that customers without phones can access, as well as a mobile money agent and digital loan recipient.
“I’m really impressed how the region has developed in digital financing. It was beyond my expectation. Most of the traders use digital technology to do their business. I believe this development should be replicated in other regions.”
Participants reflected on how effective relationships were formed between the enterprises and pastoralists as well as identified points of collaboration among the different implementing partners working in similar areas. How various inputs, including agrochemicals, veterinary medicines, vegetable and cereal seeds, and others are supplied was also witnessed. Institutionalizing some of the interventions, such as the sharia-compliant microfinance service and exploring the potential to digitize the agricultural sector were discussed.
“I’m really impressed how the region has developed in digital financing. It was beyond my expectation. Most of the traders use digital technology to do their business. I believe this development should be replicated in other regions,” one participant said.
Participants recommended areas of collaboration among implementing partners, such as in fodder production, small and medium enterprises, microfinance and agro businesses. Some of the major challenges observed were related to access to finance, which participants suggested could be addressed through policy interventions and capacity building. To reduce cost and ensure sustainability for manufacturers, some imported materials could be locally produced. The private sector engagement in providing animal health services and model agro-dealers’ engagement in agricultural input provision is an excellent pilot experience that could be scaled up and included in the draft pluralistic extension service proclamation. That proclamation narrates the future direction of the country’s agricultural extension system to shift from the existing public-led system to a pluralistic and demand-driven one.
The learning event was attended by over 50 participants, including regional government officials, and representatives from USAID/Ethiopia, its implementing partners, and local NGOs.