The LAL sector strategy targets the creation of 15,000 jobs (75% women) and the improvement of 15,000 household incomes via the generation of £110m in investments.
By the end of 2015, EP was active in four interventions, with more to be introduced during 2016. It has started the first intervention in the veterinary service/animal health market in 2015 and is progressing towards a number of interventions in the leather goods value chain, and leather manufacturing inputs.
Promotion of Investment and Market Support Services
This intervention intends to bring about $100 million worth of investment in the leather and allied industries (tanneries, footwear, leather products, chemicals, accessories, and components) over three years (2016 – 2018).
It is aimed at ensuring productivity, competitiveness, expansion, and growth of businesses in the industry, hence leading to the creation of sizable jobs and benefits for poor workers, mainly women. The investment is also anticipated to bring an increased production of key raw materials and inputs (accessories and component) domestically, thus enhance MSEs’ access to these inputs at a competitive price leading to increased income of the poor running these MSEs.
Accordingly, a partnership agreement with Balance and Peace Consulting Company (formerly known as China-Africa Consulting) has been signed and work is in progress.
Promotion of Vet Franchised Vet Service for Improved Quality and Outreach
Private veterinary service providers (private companies) are emerging in Ethiopia though challenged by very limited individual capacity to ensure quality, create a wider outreach through networks, and trigger demand through continuous education and promotion to SHFs (who are nearly the sole owners of the country’s livestock resource).
This intervention seeks to facilitate veterinary businesses to combine their efforts to promote a franchised vet service to enhance quality standards for veterinary products and services, and to widen the consumer outreach through consorted efforts.
Promoting Veterinary Services through Capacity Building
This intervention (promoting veterinary services through building marketing capacities and enhancing business skills to improve services to SHFs) seeks to build capacities of veterinary pharmacies (product knowledge, promotion, and distributional skills) to enhance the supply of veterinary services and raise farmers’ awareness through lead farmers/village level promoters who facilitate the promotion and distribution of veterinary drugs to end users, which are mainly SHFs.
The pilot is aiming to impact 17,000 SHFs in at least four to six Woredas in Oromia NRS. Upon the success and learning of this pilot, a scale up will be explored in 2016, potentially through the Vet franchise model in more regions and to more SHFs.
Factory Procurement and Logistics Services (3rd/4th Party Procurement and Logistics)
Input procurement and logistic operations limit the competitiveness of leather products manufacturing enterprises in many ways. This intervention seeks to facilitate the development of 3PL/4PL.
EP is facilitating the introduction of a commercially viable service that provides Micro and Small Enterprises (MSEs) as well as Large and Medium Enterprises (LMEs) in the leather industry with procurement and logistics services for the required delivery of inputs (finished and semi-finished leathers, zippers, buttons, dyes, chemicals, small machinery and spare parts, design and finishing materials – both in quality and quantity) in a timely fashion.
A partnership MoU was signed with Massida Solutions (a Djibouti based logistics company) for this end and work is in progress.