stemming irregular migration in northern and central ethiopia

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UNIDO INCEPTION PHASE REPORT Volume III SINCE STEMMING IRREGULAR MIGRATION IN NORTHERN AND CENTRAL ETHIOPIA

Transcript of stemming irregular migration in northern and central ethiopia

UNIDO INCEPTION PHASE REPORT

Volume III

SINCE

STEMMING IRREGULAR MIGRATION IN NORTHERN AND CENTRAL ETHIOPIA

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Table of Contents

ANNEX 5: QUESTIONNAIRES TO VARIOUS INSTITUTIONS AND ORGANIZATIONS .........................................3

Questionnaire to Micro-Finance Institutions ....................................................................................................3

Questionnaire for Regional Stakeholders .........................................................................................................5

Questionnaire to BOLSAs ..................................................................................................................................9

ANNEX 6: LIST OF INSTITUTIONS AND ORGANIZATIONS CONTACTED AND MINUTES OF MEETINGS

ORGANIZED BY UNIDO PROJECT TEAM .................................................................................................... 10

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ANNEX 5: QUESTIONNAIRES TO VARIOUS INSTITUTIONS AND

ORGANIZATIONS

Questionnaire to Micro-Finance Institutions

Questionnaire To Micro-Finance Institutions For The Inception Phase Of The Project

“Stemming Irregular Migration From Central And Northern Ethiopia”

Question Options/suggestions Possible documents

We will focus on the credit activity to MSEs and SMEs (micro, small, and medium businesses) Do you have several different financial products for these businesses?

If yes, make a list and ask the A-B blocks of questions for each product.

Do you have special credit products for businesses set up by returnees from migration?

If yes, make a list and ask the A-B- blocks of questions for each product.

Do you have special credit products for businesses set up by refugees that look for opportunities outside the refugee camps?

If yes, make a list and ask the A-B blocks of questions for each product.

A. Demographics of credit and information on sectors

Who are the borrowers? Individuals Groups

If they are groups, is the group organized only for the credit purpose or it is a business company (incl. cooperative)?

(it is a business company if they will actually work together)

How do the borrowers get to the MFI? Their own initiative, through SME development branch, …

In which sectors do they invest?

Ask the numbers of loans (divided men/women) per each of the following sectors: agribusiness and food processing, textile, leather, construction and construction materials, metal work, wood work.

Is it possible to have documents on this breakdown?

Per each of these sectors, which are the most relevant value chains for MSE?

Are these value chains concentrated in some specific woredas? If yes, can you list them (both woredas and activities)?

Are there clusters of MSEs (group of enterprises that are geographically close and collaborate), to your knowledge?

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In each sector: which is the average size of the business financed? (number of workers)

In each sector: which is the average size of the loan given?

Is it possible to have documents on this breakdown?

In each sector: which is the average size of the loan that was initially requested?

Do you provide loans to businesses specifically run by returnees from migration?

If yes, ask to describe the business

Do you provide loans to businesses specifically run by refugees?

If yes, ask to describe the business

B. Successes, failures and reasons for that

How many business plans did you accept and how many business plans did you reject in the last year? Distinguish between men and women.

If for the respondent is difficult to think of the last year, you can ask of the last 6 months, or the last month (but note down the period over which the response is given)

Which are the major reasons for rejection? Are these reasons different for men and women?

Are there sectors where you rejected more business plans? Why?

Do you support the MSEs doing their business plan? If not, who does?

Are there some sector specific institutions that support the MSEs? If yes, list them (both the sector and the institution)

Do you have enough money to fund all the accepted business plans?

Did you have cases of business that failed/closed/proved to be non-sustainable?

Ask to describe at least one case for men’s business and one case for women’s business. In which sector? Ask the reasons for failure

Is it possible to have its business plan?

Do you have success stories of businesses who managed to grow and employ workers?

Ask to describe at least one case for men’s business and one case for women’s business. In which sector? Ask the reasons for success

Is it possible to have its business plan?

If an already existing MSE wants to become bigger, can the MFI support this growth? With which kind of credit?

Ask to describe at least one case for men’s business and one case for women’s business. In which sector?

Which are the sectors and the activities where you observe more success in terms of employment creation?

Do you have data/documents on this?

Do you think that MSEs promoters who present business plans are sufficiently well trained in enterprise management and finance?

Ask to make examples. At least one concerning men and one concerning women.

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Questionnaire for Regional Stakeholders

Questionnaire for Regional Stakeholders for the inception phase of the project “Stemming Irregular Migration from Central and Northern Ethiopia”

Please, provide any available data and information on sectors, sub-sectors, value chains, and clusters. Ask especially for documents, data, and information.

PART I

1. What are the 3 sub-sectors with most potential for employment creation?

Sub-sector 1 Sub-sector 2 Sub-sector 3

2. What are the 3 sub-sectors with most potential for employment creation and a specific focus on women and youth employment?

Sub-sector 1 Sub-sector 2 Sub-sector 3

3. What are the 3 sub-sectors with most potential for employment creation and a specific focus on refugees and

returnees?

Sub-sector 1 Sub-sector 2 Sub-sector 3

4. Indicate the 3 value chains/clusters that currently have the most employment creation impact within the

sub-sector(s) [potentially related to number 1 or 2]

Name Sub-sector 1 Sub-sector 2 Sub-sector 3

Value chain/cluster 1

Value chain/cluster 2

Value chain/cluster 3

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4.1 Where are they located? Where applicable, indicate specific location up to woreda level.

Location Sub-sector 1 Sub-sector 2 Sub-sector 3

Value chain/cluster 1

Value chain/cluster 2

Value chain/cluster 3

5. Indicate the 3 value chains/clusters that will have most potential for employment creation in the next five

years

Sub-sector 1 Sub-sector 2 Sub-sector 3

Value chain/cluster 1

Value chain/cluster 2

Value chain/cluster 3

6. Among these value chains/clusters, which one has the most potential for creating stable, and long-terms job

opportunities? 6.1 What about specifically for youth and women?

7. Are these sub-sectors (or value chains) dominated by micro, small, medium, or big enterprises? 8. Is there a strategy for the transition of the youth and women from the informal economy to the formal

economy? 9. What are the policies and strategies on refugees and returnees?

9.1 Do refugees work informally in the selected sub-sectors? 9.2 Is there a strategy for the transition of refugees from the informal economy to the formal economy? 9.3 Do returnees from migration have access to the formal job market? 9.4 Is there a strategy supporting the reintegration of returnees?

10. Technical Vocational and Education programs 10.1 What are the priority vocational training programs in the sub-sectors? 10.2 Are there apprenticeship opportunities for graduate students? 10.3 What is the employability rate of graduates? 10.4 What key soft trainings are given to early graduates, i.e., entrepreneurship, competence and

management methods, business and finance management and marketing skills?

PART II OPPORTUNITIES

11. What are the 3 main opportunities to employment creation in the sub-sectors? 11.1 Can you mention 3 specific strengths that make successful the value chains/clusters identified?

Strengths Sub-sector 1 Sub-sector 2 Sub-sector 3

Value chain/cluster 1

Value chain/cluster 2

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Value chain/cluster 3

12. What are the opportunities for creating stable, long-term jobs? 13. What are the opportunities for creating decent and well remunerated jobs? 14. What are potential spin-offs of the selected value-chains/clusters?

15. Do you see any potential opportunities for creating synergies between public and private sector actors in the

selected value chains? CHALLENGES AND BOTTLENECKS

16. What are the 3 main challenges to employment creation in the sub-sectors? 16.1 Can you mention 3 specific bottlenecks for each of the value chains/clusters identified?

Challenges Sub-sector 1 Sub-sector 2 Sub-sector 3

Value chain/cluster 1

Value chain/cluster 2

Value chain/cluster 3

17. Physical infrastructure and social capital

17.1 What are the 3 most common problems when it comes to infrastructure? 17.2 What are the 3 main challenges in institutional support? 17.3 Is there a legal framework conducive to cluster and value chains development and stability?

18. What are the main constraints to output markets in the selected value chains/clusters?

19. Is the market demand fully satisfied in the selected sub-sectors?

19.1 What are the key constraints to fully satisfy the market demand? 19.2 Are the industrial/artisanal plants/machineries used on its full capacity?

17.2.1 What are the main constraints to full utilization?

20. What are the key constraints to develop synergies between public and private sector actors? Wage labour

21. Labour constraints

21.1 Is it difficult for employers to find skilled labour and why? 21.2 What skills are missing? 21.3 Are trainings for the missing skills available in the market? 21.4 Is there an institutional interface between private sector, higher education institutes, and vocational

schools? 21.5 Are trainings of TVET effective in creating skilled labour? 21.6 How do you evaluate the competence of vocational trainers for provision of quality of vocational

trainings? 21.7 Is there a lack of managerial skills?

22. Are mechanisms of social and corporate responsibility in place?

23. Labour turnover

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23.1 What are the most common reasons for workers to leave employment? 23.2 Are these connected to lack of decent work conditions? 23.3 What are the most common reasons for lay-offs?

Entrepreneurship

24. How many business work within the selected sub-sectors? 24.1 What is the mortality rate of businesses? 24.2 How long is the life span on average?

25. Scaling-up 25.1 What are the three main constraints to the scale-up of micro and small businesses? 25.2 How many of the start-up businesses reach graduation? 25.3 How many are able to scale-up?

26. Skills development

26.1 What are the available skill development programmes? 26.2 What skills are missing? 26.3 Are trainings for the missing skills available in the market? 26.4 Is there an institutional interface between private sector, higher education institutes, and vocational

schools? 26.5 Are trainings of TVET effective in creating skilled entrepreneurs? 26.6 How do you evaluate the competence of vocational trainers for provision of quality of vocational

trainings? 26.7 Is there a lack of managerial skills?

27. Do access to finance and technology constitute a constraint for the development of small businesses?

26.1 How do public institutions support access to finance and technology?

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Questionnaire to BOLSAs

Questionnaire to BOLSAs, for the inception phase of the project “Stemming Irregular

Migration from Central and Northern Ethiopia”

1) Ask to provide data disaggregated by woreda/subcity of

a. Estimation on irregular outgoing migration

b. Returnees

c. Refugees from other countries (although I don’t think they work with them)

2) Are these data gender disaggregated?

3) Do you know the current occupation of returnees?

4) Do you have specific programs for returnee reintegration?

a. Ask to describe them

b. If these programmes include MSE development, ask in which sectors

c. Can you make examples of some of these businesses?

d. Do you have success stories?

5) Do you have specific programs for integration of refugees in the labour market?

a. Do you collaborate with the “out of the camp” policy?

b. In case you do, please describe these programs

c. If these programmes include MSE development, ask in which sectors

d. Can you make examples of some of these businesses?

e. Do you have success stories?

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ANNEX 6: LIST OF INSTITUTIONS AND ORGANIZATIONS CONTACTED

AND MINUTES OF MEETINGS ORGANIZED BY UNIDO PROJECT TEAM

Date Meeting with Notes

05.10.2016

Danish Refugee Council (DRC) Ines Kwan:

Migration, Protection and Solutions Coordinator

Josh Friedman:

Deputy Country Director (DCD) for Ethiopia and Djibouti

DRC is currently implementing a broader range of activities relevant to conflict affected communities and persons. Some of the activities that they carried out are: shelter and non–food items, food securities, community infrastructure and services, humanitarian mine action, sanitation and hygiene and education. DRC worked around 30 conflicts and displacement affected countries. DRC has a country programme officer in Addis Ababa and liaison office in Jijiga, Gambella, Dolo Ado, and Tigray (Shire camp site). They are mainly working in education and creating awareness for the refugees and potential migrants in order to let them know the risks of irregular migration. According to DRC there are around 15,000 Eritrean refugees in Addis Ababa. UNHCR, DRC, DICAC, OIC and JRS are implementing projects to create job opportunities for Eritrean refugees considering they can’t be hired officially. Those international and local institutions are providing technical vocational trainings for re Eritreans. DRC is also working on studies and researches on refugees and returnees by Ines Kwan, Migration, Protection and a specific document will be presented and published soon.

06.10.2016

UNODC Ms. Maria

Temesvari UNODC Program Office Ethiopia

UNODC is working in assisting the government of Ethiopia to strengthen their capacity to provide protection for victims of human trafficking, prosecute traffickers and smugglers according to the international standards and norms. They are closely working with IOM in providing necessary information about immigration. A special focus of their intervention is also on underage labour market. This target group is increasing in number and is particularly forcing to work in the area of Garment. UNODC has mentioned that the Ethiopian Government proclamation has already been prepared to criminalize the smuggling of migrants.

12.10.2016

DICAC (Development Inter Church Affairs Department ) Ato Belay

Yared Director

The local NGO DICAC is formed by 7 departments, and between them there is one specific about returnees and refugees. UNHCR is the main donor of DICAC. Specific activities implemented by DICAC are skill trainings, livelihood packages, Health care support, education, psychological and social support and income generating activities. For refugees in urban settlements DICAC is trying to help them with informal jobs, providing also seed money for start-ups. A specific DICAC project financed by Dutch Cooperation supports mainly urban Eritrean refugees. The project provide to the refugees basic trainings on food preparation, videography and photography, mobile maintenance, tailoring and fashion design, hair dressing, computer and office machine

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maintenance.

12.10.2016

JRS NGO Father Atakilt

Country director

JRS provides training for refugees like: English language, computer maintenance, vocational training, office machine maintenance, tailing and food preparation and hair dressing. Currently they are working in Tigray (Shire) in 4 camps and in Addis Ababa. The main donor of JRS is UNHCR. According to JRS, Eritreans are more committed to receive education courses compared to other refugees. Most of the refugees prefer to take training in hair dressing and food preparation.

12.10.2016

OIC-E NGO Meles Yalew

Managing Director

OIC-E is a local NGO established 1973 by community leaders. Its main donors are UNHCR and ARRA. OIC-E has two main sites in Gulele and Bole. The main mission of the NGO is to give vocational training to refugees and local communities. Most of the refugees are Eritreans and sponsored by UNHCR. OIC-E has Vocational training sites in Tigray (Shire) and Addis Abeba, in

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order to provide to the refugees the necessary skills for working in informal jobs. OIC-E provides skill trainings like electrical installation, welding, carpenter tailor, garment, hair dressing, basic computer skills, metal work and auto mechanic. The NGO can accommodate up to 3000 students per year. The highly demanded trainings are Garment, Plumping and Carpenter. The trainings are recognized by the Ministry of Education and certified by the quality control system. The duration of the trainings is from 6 months to 1 year. According to OIC-E, from 300 to 400 Eritrean migrants arrive every day in Ethiopia and almost 20,000 urban Eritrean refugees are in Addis Abeba. OIC-E have 5 training camp sites in Tigray Shire, May Ayni, May Tsebri, Adi Harush , Shem Aleba and Histatse.

12.10.2016

International Organization for Migration (IOM)

IOM has defined an immigration mapping. They suggested that also ILO should have the data on mapping the potential migrants. According to IOM, EU has more updated data on the newly posted program RDPP specifically working on urban refugees in Somalia and Eritrea.

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Fumiko Nagano Head of Migration management Unit

IOM has also worked together with UNODC in providing support and organize national task force to stop illegal migration and urban migration.

13.10.2016

Federal Small and Manufacturing Industry Development Agency (FSMIDA)

Asfaw Abebe Eregnaw General Director

According to the General Director Asfaw Abebe, FSMIDA is the leader of a task force having the mission to integrate returnees creating job opportunities. Some of the activities implemented by FSMIDA are provision of vocational trainings and irregular migration awareness campaigns, realized together with IOM and other governmental partners at woredas and kebeles level. The activities have been conducted in Amhara region (Wollo, Kombolcha, Kemesie and Shewa zones) for about 60 returnees. TVET provided training depending on the choice of the returnees. FSMIDA managed to provide working places like shades, providing seed money in coordination with IOM. The project report will be provided accordingly. The most affected areas are identified according to the number of returnees. Those places are mostly found around the Wollo zone and Southern Tigray woredas. The agro processing, urban agriculture are the sectors that can create more job opportunities for returnees and potential migrants. The current challenges mentioned by FSMIDA are: working place, land building, infrastructure and willingness of the kebele administrations.

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13.10.2016

Ministry of Industry (MoI) H.E. Tadesse

Haile State Minister of Industry Federal Democratic Republic Of Ethiopia

Mr. Tadesse Haile expressed his willingness to support the SINCE project, in particular recommended to work in cooperation with the FSMEDA and regional SMEDA, mainly during the selection of the value chains and cluster development. He suggested considering as priority the existing cluster, e.g. Textile, leather. The textile industries and clusters in Hawasa, Bahirdar and Mekelle towns could developed and address high employment creation efforts. Specifically leather industries and clusters around Central Oromia and Bahir Dar are stated as an example for SICE areas of intervention. Mr. Tadesse Haile mentioned that the sectors and subsectors of metal works, building construction and agribusiness are the government’s priority areas for economic development and employment creation opportunities. Mr. Taddess Haile stated that industries located to the proximity of ports should be taken as an opportunity for sustainability of the employment creation opportunity.

13.10.2016

Meeting with EU delegation in Ethiopia Elena Ruiz,

The meeting with Ms. Ruiz has been scheduled after a formal invitation received by UNIDO and ILO during the latest Technical Working Group meeting. It has been planned in order to acquire a thorough understanding of the multiple activities that the EU delegation is carrying out in Ethiopia in the framework of the EU Trust Fund.

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European Union Delegation, Attache Programme Manager, Job creation

For this reason, Ms. Ruiz has provided to the two organizations the list of the NGOs that have been selected for the RESET (Resilience building and creation of economic opportunities in Ethiopia), including relevant surveys and project documents. UNIDO and ILO have shared with the EU representative the joint work plan and the main challenges of the data collecting in the current situation.

19.10.2016

People In Need (PIN) Massimo

Alone Country Director

Sara Worku Deputy Country Director

Veronika Jelinkova International Fundraising and program support

PIN started its operations in Ethiopia since 2003 and has worked in cooperation with government stakeholders on improving food security, nutrition and natural resources management; enhancing the quality and access to education; enabling rural families to access safe water and sanitation and strengthen socio-Economic development . PIN is primarily funded by the Czech Development Cooperation and private donors. It is registered and licensed by the charities and societies agencies as a foreign charity. PIN has constructed more than 23 schools for Ethiopian Children. PIN has worked in SNNPR, Amhara, Somali and Oromia regions. About irregular migration activities, PIN is mainly working on internal migration trough prevention and awareness activities. Also PIN is implementing projects focused on building community women empowerment trough helping them into prepare business plans and establish their own business. PIN is providing necessary financials and trainings. PIN is also working with local NGOs who are working in providing necessary vocational trainings to build the capacity of trainers. This project is focused on limiting the irregular migration. PIN is mainly working in SNNPR region (Hawassa, Dilla, and Alaba woredas) as consequence of the high rate of internal migration.

20.10.2016

Save the Children International (SCI)

Save the children in Ethiopia has one of the largest office in the world with 20 EU funded projects clustered in one portfolio. Save the children

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Jhon Lundine

Deputy country Director, Program Development and Quality

operates in all over Ethiopia working in youth employment creation to limit the children on move. According to Mr. Lundine, SCI is preparing youths for jobs through vocational and technical trainings. SCI is involved in humanitarian assistance to Eritrean refugees and is working in scaling up the limitation of the TVET for a more sustainable and longer term approach to stem irregular migration. SCI is working on strengthening private/public sector linkages by improving youth functional literacy and skill building.

20.10.2016

Ministry of Industry

Mr. Sirak Mamo FSMMDA, Director, Entrepreneurship Development Directorate and Capacity Building

Mr. Shumu

Teferra, Director, Technology and Industrial Linkage and Support Directorate

Mr. Dennebamk Mekuria, LIDI

MR. Delo Benka ETID

The members of Ministry of Industry task force are: leather, textile, technology and industrial linkage, food and beverage, meat and dairy. They have signed a memorandum of understanding and drafted action plan which was validated in 4 regions. The same task force within regions has to be formed for the implementation. The technology transfer, kaizen, capacity building, entrepreneurs, incubation centre, research and development and consultancy services are included in PCP program. National science and innovation centres at the prime minister office are creating synergies between universities and industry.

24.10.2016 Administration for Refugees and Returnees Affairs (ARRA)

MR. Fisha Meseret

Federal government has signed the UN convention and has an obligation to work on returnees and refugees on basic social services. Ethiopia hosts more than 800,000 refugees coming mainly from Somalia, Eritrea and Sudan in 24 camps. ARRA is working together with UNHCR, WFP, UNICEF, IOM and institutional donors for fast response to all the refugees needs. ARRA works closely together with the NGOs NRC, DRC, OIC-E, JRS, DICAC providing to the refugee vocational trainings, seed money and micro finance aids. ARRA controls strictly the activities of the NGOs. ARRA stated that Ethiopia has out of camp policy in creating skill opportunity for Eritrean only. The GoE is now addressing the issue of creating job opportunities for refugees and pledging new policies. Some of

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them are : Expanding out of camp policy Access to Employment Work permit Education Local integration Access to land Basic and social service Job creation : in industrial parks and other institutions Other benefits : like driving license, Bank account

The pledges are already approved and will be put in to implementation as soon as possible after discussions with stakeholders.

24.10.2016 Leather Industry Development Institute (LIDI) Mr. Dennebo Education and

Training Directorate

LIDI is Government Institution which works on the development of leather Industry in Ethiopia. Mr. Dennebo stated even though it is not as big as the textile sector, the leather sector is a source of income for about 25.000-30.000 people in Ethiopia. The plan of GTP II is to reach the total number of 207.000 employed. According to Mr. Dennebo, as result of low electric power, less technical capacity of employees and marketing leather production is below the capacity of the country. In order to address these challenges, LIDI is providing 2-3 years training in the institution on job training in finished leather products companies and short term trainings in collaboration with 32 TVET Colleges in Addis Ababa, Dire Dawa, Oromia, Tigray and SNNPR Regions. LIDI provides short term trainings when there are mass trainees in the TVET and advices related to material and machinery specification. In addition LIDI is working with Addis Ababa Institute of Technology Department of Leather Technology and Addis Ababa Science & Technology Foot Wear and Leather Technology. Regarding the issue of access to export market, LIDI has a Marketing Directorate which is searching market in USA and Europe. Mr. Dennebo stated that between the LIDI graduates, 100 of them are already employed. He suggested that SINCE project can intervene: Increasing the limited number of trainers (providing training for

trainers) of the TVET Providing capacity building for the workshops of the TVET in different

regions that doesn’t have the necessary equipments. Providing support to LIDI on curriculum development area and

revision of already developed curricula based on the current market demand.

Therefore there is a need to develop curricula of gloves production in consideration of the huge export market demand for them. According to Mr. Dennebo, it is very promising that there will be a big demand of workforce in the leather sector in the coming years because there are many companies who are on the way to employee.

24.10.2016

The Ethiopian Industrial federation of construction,

This federation is constituted by 35,000 members on a total of 1 million construction workers. The main problem is that the companies don’t want to have their employees organized in Unions. This is mainly a problem in foreign

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wood, metal, cement and other trade unions. Ato Zegeye

Managing Director

companies and with contractors, in fact there have been several cases of fired workers after having tried to organize Unions. Based on the experience of other countries like Kenya, the federation has the right to organize the labor union. In the case of Ethiopia, the law implementation is very poor. As a consequence the employees don’t have the right to ask for safety equipment (and they work with unsafe scaffolding). Safety is a major problem in construction. About 30% of workers are professionals (about 200 ETB/day) and 70% are causal workers (about 70 ETB/day). Of these, about 75% are women and youths. The work that they do is very basic, like carrying, and they work on a daily basis. Most of these workers are internal migrants. The reason of the high turnover is the seasonal nature of work and searching better payments. The federation gives trainings to members on labour law, HIV prevention and safety and security. But they give only the above trainings, because work is too unstable to provide other trainings. Most of the workers in construction materials have its own company who sell piece-rate to the construction companies, and those can’t be the member of the Federation (the law doesn’t’ allow them to work on self-employment, informal and casual labour). In case of government work, the preferred subcontractors for these works are MSEs of professionals (e.g. cobble stones, bricks…). Based on the market, the most demanded jobs are carpenters, bricklayers, painters (but also metal work and cobblestone). They are professionals organized in small groups or individually. They have limited skills, but trough support they could get better skill and be able to participate in every aspect of the construction sector. Training casual workers in these skills would be important, in sectors where they don’t need big investments in capital. Most of the demand for construction workers is in Addis Ababa.

24.10.2016

Ethiopian Contractors Associations Ato Samson

Alemayehu, General Manager

The association has offices in Tigray, Amhara and soon they will open in Oromia and SNNPR with a total member of 1.500 members. The contractors participate in building, road and water works. Even if the sector is booming, still unemployment is not decreasing and students graduating in engineering are more than the vacancies. The reason is mainly lack of experience because the private sector in Ethiopia is still young: owners don’t feel confident in expanding the business, lack capacity and don’t like to employe workers (prefer doing everything with few people or relatives). Another reason is that they depend on financer and this is a constraint to work at full workforce. Lack of skilled workers is a problem: most of workers are trained only by experience. They need training to be updated and know new technologies. Most skill-related problems are in finishing works: floor work, carpenter, gypsum work, door and window, and sanitary and electrical work are some of the sectors specifically need skills. All employees are employed on the spot; on a temporary basis in fact “workers shift from project to project”. Other skill problems are: managerial skills and skills in pre-construction work (e.g. feasibility study), and skills of the specialized sub-contractors that work for the primary contractors (usually MSE). They give training in University to their employers who are willing to learn (grade 1 to 10). They mainly focus on managing their company in every aspect of managerial nature. They push enterprises to do training to workers. A memorandum of understanding has been signed with Construction Management Institute in

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order to do a research on the sector. The newly graduated students from university could be a good source of quality in MSEs service, if they will receive financial and additional skill trainings. Women participate in the construction sector; they participate in casual work, time keepers and finishing of the house.

24.10.2016

Horticulture Exporters Association Ato Tewdros

Zewdie, Executive Director

Ato Tewdros explained that horticulture exporters association is a member based association working on policy advocating, capacity building (also with local and international partners), support for certification, marketing and branding, sponsoring delegations for outgoing and incoming missions and treating wastes. Ato Tewdros stressed that Horticulture is very young industry in Ethiopia with huge potential. He also added that due to the new railway the logistics issue has been minimized. As consequence, this is attracting more investors. He also highlighted 80% of the employees are women. Ato Tewdros highlighted also some challenges which are:

Difficulties in production and connection to the market. Legal framework has loopholes which allows some people to

abuse. Abuse of labour rights.

Finally Ato Tewdros recommended considering urban agriculture in Addis.

25.10.2016

Ethiopian Textile Industry Association Ato Fasil

Tadesse, President

Ato Fassil is currently serving as a CEO MA Garment and as president of the Textile industry association. Specifically, his company produces knitted garments. Majority of the company products are for the export market. His company has its own training facility to train fresh employees. Currently his company is 20% more productive compared with the Bangladesh industry. But the company lacks skilled man power in the dying section. The company is also certified with different international organizations. It is important also to mention that 90% of his employees are women. About the Textile Sector in Ethiopia, Ato Fassil believes the next five years will be the time for the textile and garment sector to flourish. Specifically, Tigray is the region where most of the textile industries are located. Also there is an industrial park that is under construction. The industrial park construction is planned to be finalized in December and it will be operational in May. Incentives are available by the government for companies in Textile sector, in fact the 85% initial capital loan for companies is inside the Industrial parks. Instead 75% is initial capital loan if the company is being set up outside an industrial park Some of the companies located in the Tigray are: Almeda Textile (a company owned by EFFORT endowment), MA Garment, Velocity (Plans to hire around 5,000 employees), Calzedonia (Italian company, it will be operational after 1 month), DBL (A Bangladesh company currently building 5 garment factory, to be operational in May). He believes that when all those industries will become operational, there will be more need for skilled labour. Also he mentioned that the employee turnover in the sector is not a big problem, but employees leave for better salaries and setting up their own businesses.

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26.10.2016

H&M Tobias Fisher,

Ethiopia Commercial Director

The challenges for the company are: labour force is abundant but there are not good skills; workforce previously working in the informal sector; lack of efficiency; wages lower than other countries; Absenteeism; turnover very high; local producers are not good enough. Other problem is the middle-management; in fact the trainings for managers are strongly necessary. Also the level of the cotton is not good but the price is high. The staple length of seeds is too short for garment.

26.10.2016

FSMMIDA Sirak Mammo

Director for Entrepreneurship Development Directorate

Ato Belete,

Director for Agro Processing Directorate

Ato Seyoum

Wougira, Director for Textile and Garment Directorate

Ato Girma

Deribew, Director for Metal, Wood, Construction and Engineering Directorate

Ato Mulat,

Director for Leather and Leather products Directorate

FSMMIDA is a new organization setup focusing on the manufacturing sector. The main mission of the agency is coordinating different stakeholders like MFI, TVET, industry development, textile development and gives both financial and technical support to the small and medium enterprises in the country. The agency has an incubation centre (metal work, wood work, agro processing-established with the support of Indian Government) that also works on policy development. Previously the agency used to be known as FeMSEDA, but recently it has been restructured and divided into two organizations namely, FSMMIDA (Focuses on small and medium enterprises and the manufacturing sector) and Federal job creation (Focuses on micro enterprises and service and trade sectors). About clusters, Textiles and Garment are the largest ones. There are Small enterprises that produce for local market and some of them also for export. The major challenges to scale up enterprises are: Technology, capacity of TVET, market linkages, capacity of workers (skills), utilizing the clusters properly (don’t want to pay the fees: ‘people are abusing of the clusters’). The detailed study on the mortality rate of enterprises has not been performed, but the management thinks it is between 1% and 5%. These are the main reasons listed as the reason for mortality: - Entrepreneurial Skill (Attitude) - Business management Skill - Skilled Manpower - People blame financial support, but it is matter of attitude. They want

to grow too fast. The agency is currently planning to develop a strategy on Entrepreneurship with Ministry of Industry. Actually, the number of enterprises are increasing and currently there are around 500,000 (micro, small, and medium enterprises) including services, manufacturing all over Ethiopia. In all the SINCE zones the capacity of entrepreneurs to employ is increasing.

Regarding the access to the credit, the lease financing for machineries is being provided in Addis Ababa and regional cities. In GTP I there was a gap in supporting medium enterprises growing from small: lease financing is precisely aimed at filling it. The National council for Science and Technology under Ministry of

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Industry is working on identifying the demand of skill development and it is coordinating and collecting information about it and report to institutes and universities. The FSMMIDA Textile Department needs technological support on weaving area. There is a need to change the weaving machineries from manual to automatic. The agency needs support on setting up a model center equipped with modern machineries. The center can be replicated to other regions and centers in the future. The machineries are available in 2 options. Powered(Chinese machine) and Manual (Indian manual weaving machine ). Regarding the production of cotton, the department wants to work on increasing the quality of locally grown cotton. Cluster center development corporation works on the development of clusters. The department has set up offices in the regions to follow up and standardize the development of clusters. Currently they have prepared 3 standards for the clusters: Grade A Clusters – Those clusters are planned for bigger population towns and are planned to be laid on 250 hectares Grade B Clusters – Those clusters are planned for medium population towns and to be laid on 100 hectares Grade C Clusters – Those clusters are planned for woreda level and to be laid on 50 hectares

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27.10.2016

Made By Ethiopia Bethlehem

Tilahun, Director

Made by Ethiopia is a project initiated by the owner of SoleRebels, Bethlehem Tilahun with the support of the Ministry of Industry and LIDI. The project has focused on the needs of shoes for the global market and maximizing value chain finished products. According to the representatives of Made By Ethiopia there is no employment creation without market. If there is a market even the problem of raw materials can be solved by the buyers themselves. The representative mentioned that in the coming five years they are planning to create job for 7000-10000 people in the country. Regarding the advice requested by UNIDO team, the representative stated that: Effective result will not be achieved through LIDI; There should be a direct consult of the private sector; International technicians can bring a change in the sector; People will learn more in factories (learning by doing) than in training institutions; Lack of market is still a problem so much should be done on finding International Market.

27.10.2016

FAO Dr Ashagere,

AAU Center for Food Science and Nutrition

Dr Abebe

Adama, Science and Technology university, consultant at INTAG & President of the Fishery and Aquatic science Association.

Filippo

Brasesco, Agronomist

Mr. Brasesco explained what it could be done regarding value chains: - Regarding establishment of Agro Industrial Park (Bulbula), FAO is

supporting Ministry of Agriculture, and Ministry of Livestock in collaboration with ATA.

- There are various value chains identified in collaboration with the institutions. The commodities identified in the report are prioritized based on the marketable surplus, potential for creating employment, commodities for export market etc.

- Employment opportunities are cross cutting, instead of farming, the most opportunities for the youth are in: collection, primary processing, storing, transformation, transportation, marketing of the product.

- He also noted the park will be constructed and operational after 5 or 6 years, so it’s better to start working with existing firms around there.

- Aquaculture is very interesting and easy start for youth

Regarding challenges, Mr Brasesco stressed that access to credit and financing is the major issue for the youth specially to start a project. He also added mechanization of the value chains as another issue, which could make the agricultural value chains more appealing for the youth. Mr. Brasesco believes there is no need for milling since there are already companies doing that, the real need is to improve the quality and volume of production. For the Tomato value chain, he believes there is a huge opportunity for import substitution of the pastes.

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Dr Abebe explained that, regarding aquaculture value chain, there is a lot of post-harvest losses, which can be used as feed for different kinds of animals. In lakes Tana, Awasa, Zeway and Arba Minch are not exercising post-harvest process currently. Dr Abebe pointed that in their project there is “integrated inclusive business” model and contract farming. Dr. Abebe pointed feed processing as the biggest challenge that they have in livestock and aquaculture. He even had a plan to establish small holder level feed processing, fish hatchery and fish grow out models. He also suggested haricot beans are being exported as low quality. Dr Ashagere stated priority of commodity should always come from the market and added mushroom has a market although it is even costly than a meat. He believes based on his experience that mushroom is very interesting for youngsters as they can be the harvesters themselves. They can take spawn (seed) of the mushroom and grow it in their home. He stressed mushroom production has a great potential for employment creation since it has a multiply effect. He also mentioned 1% of the demand for mushroom is satisfied locally and the rest is imported.

27.10.2016

Addis Ababa Chamber of Commerce Ato Yayehyirad

Abate, Deputy Secretary General

The Addis Ababa Chamber of Commerce is set to create an environment in which business in Addis Ababa can develop and grow at a much faster pace. In doing so, the Chamber encourages the Addis Ababa business community to direct its resources in a way that promotes trade and investment. During our discussion Ato Yayehyirad informed us that there have been different projects in the past periods and their findings can be used as an input into the preparation of the inception phase report. Some of the projects he mentioned are: Agri Business project facility funded by the Dutch Government; A study focusing on cultural industries like weaving and handicraft, funded by EU; A mapping document prepared by SNV Ethiopia in association with the Ethiopian Honey producers association. The National Business Agenda is based on: - Access to finance for private sector - Lack of spaces for production, especially for MSEs;

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- Tax law requires MSE to have the same tax legislation for big companies. Mandate given to tax officers allows corruption.

- Producers have no access to buyers. There are many brokers, getting all the benefit. An example is Shiromeda where brokers have the big share.

- Lacking technical skills for the labour. Keeping standard is very important for high market, but MSE don’t keep the same standard.

- Funding multi stakeholders platform - Training - Access to working premises

Advocacy services and training are provided by the chamber of commerce. Ato Yayehyirad believes that the focus on the value chains will be the key to understand challenges in the sectors and he suggested focusing on missing links in the value chain and vertical integration of the value chains. The clusters are important but often miss the big picture in fact output and market side is often neglected. Boosting production is not enough in fact there is no enough focus on the market. Only 43% of actual capacity is used in the manufacturing sector. Main Challenges in that sector are: access to foreign currency (buying inputs abroad), shortage of power and the collection of inputs locally is still very difficult (as an example collection of leather hides was mentioned). The Cooperatives are normally not very well organized. Aldo there is Quality lacking of supplying the market, power outrage and Productivity. In fact in Ethiopia there is cheap labor but efficiency is very low. The Chamber also works on advocacy and dissemination of information through radio, tv, newspaper etc.

27.10.2016

BOLSA Ato Kumneger

Addisu

The pillars of anti-trafficking task force plan on irregular migration are: prevention, protection, prosecution, and partnership. This office works on prevention and protection:

About protection for returnees, there have been over 169,000 returnees from KSA since 2013; out of those 4000 were from Addis. As a whole, about 5.800 returnees came to seek support at this office. Support means returnee’s rehabilitation, health and TVET training (28 types of trainings, with final exam from Center of Competence -COC), psychological support, and small and micro-enterprise. The city administration provides work spaces, so far 59 small cooperatives have been formed with 1.800 returnees.

About Prevention for potential migrants, lot of jobs has been done in terms of awareness using social media and overseas employment labor management service, to provide pre-departure services. They prepare lists of unemployed (that they consider as potential migrants) per sub-city. In Addis Ababa they were 288,664 last year and this year 135,088 have to be added.

Actually, they have a plan to support safe migration for 10.000 people towards 5 countries (Middle East and Gulf countries). Also they want to create employment opportunities in MSEs: providing credit (taking into account the lack of assets), land, behavioural training (most of them expect

25

assistance) and technical training.

More broadly, to fight against unemployment the needs are: 1) Incentives for private sector in particular those have to be given to do trainings and to re-train workers at the beginning of a new job; 2) Harmonization of public works; 3) start-up capital for MSEs. They have arrangements with NGOs coordinated by Geneva Global. BOLSA register graduate jobseekers and divide them according to their skills and interests to public work/private sector/MSEs. The MSEs channel is assisted by NGOs who provide seed capital, training and business.

27.10.2016

IOM Paolo Caputo,

Head of Programs

Fumiko

Nagano, Head Migration Management Unit

IOM currently has 3 migration centres and provide life safety operation, collection of data and transportation of Ethiopians for Djibouti returnees. Most of them are from Yemen. They are providing two transit sites for Returnees and Refugees before their departure. IOM is also working on community development programs for returnees and potential migrants. This program has been replicated by ILO and UN-Woman. The program is mostly focused on creating awareness and looking for Economic solution in changing of the livelihoods for the communities. This program has been implemented in Samara, Metema and Wolo. IOM also put their concerns about the Eritrean immigrants as they use Ethiopia as transit to a secondary migration. UNHCR is providing support for the out of camp policy for Eritreans. And IOM is mostly providing Medical service and Transportation. IOM strongly recommends that UNIDO should participate in the immigration working group that will be conducted every month the last Wednesday.

28.10.2016

Ethiopian Construction Project Management Institute Dr Yoseph

Birru, Director

The central issue is skill development. To face the large unemployment of graduates, they are planning - The establishment of an excellence centre (it is part of GTP II) with

advanced simulation equipment. This responds to the need to increase quality and to face skilled unemployment (it deals with higher grades than TVETs)

- technology transfer in concrete production, involving the big private companies

- certification from Project Management Institute - Create national occupational standards compatible with international

standards (to make Ethiopian skilled workers attractive for the international labour market).

Competences are now acquired only on the job. There has been a big scholarization program, but still a problem of quality exists. Thus, firms complain of lack of skills. The biggest demand in the sector comes from public funds. The highest labour intensive sector is housing, while road construction is more capital intensive. Sub-sectors indicated are: material manufacturing (mostly hollow blocks, gypsum), excavation, finishing, electricity, and painting. All non-structural parts of houses are done by MSEs who passed the graduation process. All of this is within the public investment field.

28.10.2016

Enterprise Partners EP- WEDP Team

Enterprise Partners (EP) is working on Women entrepreneurship Development Program (WEDP) which is mainly funded by the World Bank and Implemented by FSMIDA. EP is working in Addis Ababa, Dire

26

Mr. Chris

Malwadde, Leader

Dawa , Adama, Mekele and Bahir Dar. Mr. Malwadde stated that FSMIDA train interested beneficiaries before providing them the loan. Every quarter there is a report that EP receives from FSMIDA. The program also includes BDS training for the women. Regarding the questions raised by UNIDO about the follow-up of EP or Micro finance Institute (MFI), Mr. Chris confirmed that there is no follow-up by both institutions after the loan is conducted. EP or MFI doesn’t even have the data for the mortality rate the business established by the women who had the chance to use WEDP. EP manly monitors the repay of the loan.

28.10.2016

ELIA, Ethiopian Leather Industrial Association Mr. Abdissa,

Representative

According to Mr. Abdissa the tanneries are operating below their capacities, even though the number of tanneries increased, production of finished leather didn’t increase. There is a big gap between the capacity and the demand. So tanneries are not producing up on their capacity. In some cases, when there is big demand for export market, tanneries are unable to supply finished leather as a result of Ethiopia import from Malawi, Botswana, Sudan and Saudi Arabia duty free for the purpose of export market. Mr. Abdissa said SMEs are very weak to create job opportunity. Instead, job opportunity will be more effective in industrial parks and working on capacity building to the private sector. In addition he suggested that much attention should be given for trainings.

15.11.2016

Selam Technical & Vocational College Mr. Solomon

Chali, Director

Selam Technical & Vocational College is a local NGO working on 8 different departments: Metal works, Food preparation, Building electrical and sanitary installation, Furniture making/ Wood work, Textile –Garment with the plan to work on the leather sector, Urban Agriculture (rabbit, poultry, fattening, dairy farming and bee keeping ), Basic Computer Skills and maintenance, Secretarial Science. Mr. Solomon mentioned that trainings of Selam are very effective on creating job opportunities and to be very successful for the graduates for the following reasons: a) There are 49 private Ethiopian companies’ workings with the college,

30% of the training is conducted in the college and the 70% is in the companies to make the trainees efficient.

b) Graduates have chance to find job even before graduation while they were on the practical training in partner companies. Most of the companies recruit them during the internship program.

The college focuses on wage in industries. As a result, every time there is a big demand to join Selam. For example there were 200 applicants this year, out of them only 45 trainees passed the entrance exam. The plan is to make the number of female 50% of the trainees; at the moment it reaches 35% of the total number. Selam has the capacity to train 1.000 people per year.

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14.11.2016

Federal Ministry of Agriculture Ato Dereju

Yegezu, Director Smallholder Horticulture development

The major challenges are: Market linkage is huge issue for both fruit and vegetable; seed and chemical supply; post harvest and brokers. Intervention needed technical support for creating modern nursery. Each nursery has a potential for 20-30 employment and in Tigray 3 places have started Suggested value chains around Rift Valley are mainly Tomato and Onion but green bean, banana, potato have also a huge potential. Mitiku is not only an expert but also works as mushroom producer. According to him Main advantages include: ready markets, frequent harvest and small investment. The disadvantages are no post harvest handling, lack of substrate ratio knowledge, no uniform harvesting and high price at supermarket but low price of producers.

14.11.2016 FIELD MISSION TIGRAY

Tigray Trade and Industry Bureau Ato

Woldearegay, Director

Ato Woldearegay mentioned that his office’s willingness to collaborate with us. After the short meeting he directed us to the respective offices that we requested to visit.

14.11.2016 FIELD MISSION TIGRAY

Tigray Bureau of Labour and Social Affairs Ato Assefa,

Ato Asefa highlighted that there are 22 woredas affected by migration (named as migration prone areas in the Tigray region): Raya, Raya Azebo, Alamata City, Hintolo Wajirat, Mekelle City (with 7 Sub cities’), Wokro, Atsebi Womberta, Sasie Tsada Imba, Kelte Awelalo, Ganta Afeshum, Irob, Ahiferom, Shire City, Aseged Tsimbla, Tselemti, Tahtay Adyabo, Sheraro, Kafto Humera, Setit Humera, Wore Leke, Abi Adi, Enderta. During the deportation of Ethiopian citizens from the Arab countries, approximately 28,000 returnees were from Tigray region mainly Atse Umberta; Aferom; Raya; Raya Alemata; Raya Azebo and Alemata City. Following this event, 3,150 returnees from 6 woredas were beneficiaries of a special program through the reintegration project led by ILO. This program provided rehabilitation services, training skills, financial opportunities and marketing strategies advises. These selected beneficiaries have been trained in manufacturing (wood work, metal work, hollow block production) animal farming (poultry, animal fattening, bee keeping…) and service providing (food preparing, hair dressing…). BOLSA closely works with Bureau of Youth and Sports, Micro and Small enterprises in Tigray, Bureau of Agriculture, TVET Tigray and Dedebit Micro finance institute.

15.11.2016 FIELD MISSION TIGRAY

Tigray TVET Agency: W/ro Kiros

Gebrehiwot, Tigray TVET Agency Process

The organization mainly focuses on providing short term and long term trainings for the youth in the region. Some of the agency’s activities focus on stemming migration and rehabilitation of returnees. These activities are performed in collaboration with the following organizations: Small and Micro Enterprises, Youth and Sport, BOLSA Office, Dedebit Micro Finance

28

owner

Institution, Woreda Administrations. Trainings: Short Term trainings have been considered more effective: 75% of short term trainees were able to secure jobs; 65% of long term trainees were able to secure jobs. Most manufacturing trainees in the long term programs are hired immediately after finishing their trainings. Most of the health sector trainees were not able to find jobs but they have then been connected with the regional health office. These are some of the challenges in the training area: insufficient number of training centres in the region), finance shortage, shortage of training machineries, lack of qualified trainers in leather, textile, garment and manufacturing sectors. In Tigray, there are only 37 TVET training centers but there are 2 to 3 high schools in each woreda, so each year there a number of high school students who are not able to continue their studies. Thus, identified challenges are: the expansion of TVET colleges in the different woredas; motivating trained youth towards self-employment (trainees tend to look for formal wage employment rather than self-employment); providing job opportunities to trainees once they are trained and certified. The agency has conducted an assessment on the market in Tigray. Through this assessment they have identified that there is a high demand of training in manufacturing (metal and wood work…) and construction (block and brick production). Returnees: In 2013 there were around 28,000 returnees from Saudi Arabia to Tigray region; only 3,150 of these returnees were able to get training. Three woredas where large number of people migrated are Atsbi Wenberta, Ahferom and Agulal (rural woredas of Wukro area). Entrepreneurship training was given to list of returnees prepared by the BOLSA office. 3 rounds of training were given. In each training 1050 people have participated. The office performed a study on 1,500 returnees to identify their interest. The result showed that most of them want to work on agricultural related activities like animal husbandry, fattening, poultry and urban agriculture. This is because most of them are from rural areas. Some of the returnees in the urban areas were interested in to work on the manufacturing sector in metal work and construction sector. 90.3% of the trainees were able to pass the Certificate of Competence (COC) exam. The TVET office believes more assistance should be provided on the areas of helping them to setup their own business and providing loan services. In partnership with ILO the office has provided training in 6 woredas as a pilot project. But after delivering the skills training there was a gap of time in providing loans. This has created boredom and trust questions on the process of reintegration. Documents Collected: Market Assesment Document (Language: Tigrignya); Power point presentation on the follow up of returnees (Language: Amharic); MOU document between different regional stakeholder offices (Language: Tigrignya); Sample of MOU between Tigray Regional office TVET and Wukro Polytechnic Agricultural college (Language: Tigrignya).

15.11.2016 FIELD

Tigray Agriculture

TAMPA is a semi-governmental agency that is established to help farmers to better market their products. The agency provides skills and material.

29

MISSION TIGRAY

Marketing Promotion Agency (TAMPA) Ato Yohannes

And Mr. Schwarzer Gregor, Consultant

The main beneficiaries of the agency are smallholder farmers. The agency is funded by donors like EU, GIZ and also the GoE. The agency has prepared an agro-processing plan where a pre-feasibility study was conducted on more than 17 products with the Mekelle and Axum Universities, Bureau of Industry and Micro and Small Enterprise bureau. The agency is member of the Youth Command Post, where the Bureau of Youth and Sport is the chair. They provide training to youth, when needed, on how to sell their product. They have currently provided training in Alamata in 3 areas – Bee keeping, livestock, vegetable and fruits and marketing their products. Mr. Gregor Schwarzer, Agro promotion technology officer in TAMPA, works on developing agro-processing in rural areas with Solar energy and Manpower while improving the quality of food and food security. The current focus is on oil, honey and tomato. The agency is currently in the process of obtaining a license from the food and drug administration office to start selling the processed products like tomato paste, semi processed vegetables, cactus juice and honey. Along with GIZ, 2 Micro enterprises for the youth are being built in 2 woredas. The enterprise will work on production and packaging of products with farmers providing the raw material. Also it assists farmers in the rural area on finding finance. Documents Collected: Strategic Development Preparation documents in some agricultural sectors (Language: English); Small scale tomato processing (Language: English); Oil seeds processing by farmer user groups (Language: English)

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15.11.2016 FIELD MISSION TIGRAY

Relief Society of Tigray (REST) Ato Desta

Gebremicahael,

Department Head, Enviromental Rehabilitation & Agricultural Development Program

Yikunoamlak

T/Birhan, GRAD Project

Regional Coordinator

Ato Dawit

Weldelibanos Ato Getachew

Kalayu, Head of

Planning and Coordination Department

REST is a local NGO where the operational work focuses on rural Tigray. Activities focus in providing potable water to the society, natural resource management, assist smallholder livelihoods, health and education, social protection and women empowerment. In addition, REST is currently implementing the Youth Potential Development project funded by USAID through Save the Children. The project stared in Jan 2015 and is a 5-year project. It has a focus on youth and women and is in 4 phases: Assessment phase, conducted by Save the Children to identify the market and labour available; capacity building; coaching services; connecting the trained youth with Micro and Small Enterprises and Micro Finance for financial support in the creation of business. The project has an annual target of training 1,125 beneficiaries and connecting 459 to the necessary institution for employment opportunities. The Kebele conducts identification of beneficiaries through a selection mechanism and criteria developed with REST. In addition, REST has supported youth in the rural area in cash for work and food for work activities by creating land for landless youth. In the rural areas the NGO also works with farmers. One of its projects was able to benefit 19,000 farmers by securing a loan of 150 million birr. The collateral amount (19 million Birr) was paid by REST and the farmers were able to secure loans. Capacity building trainings has also been given to the farmers. Follow up is done by assigning 1 advisor for 250 farmers. REST has identified 11 migrant prone woredas in Tigray and mapped zones with potential development of agriculture-related businesses (data has been shared). REST also works with the landless youth in providing the following services: preparation of mountainous areas for agricultural activities and provides it to the youth; Bee Keeping; Fruits and Vegetables; training activities. Documents Collected: REST Annual Report – USAID Building the potential of youth (Oct1, 2015 – Sept 30, 2016) (Language: English).

16.11.2016 FIELD MISSION TIGRAY

Central Statistical Agency Amare

Gebrewahad – Office Head

CSA has conducted several surveys for the region, but has never led a study on migration. Some of the studies include the process of establishment of micro and small enterprises. This assessment has not yet been official. They have supported WALTA in conducting a study on returnees from Arab countries, to analyse the cause of their migration, their expectations from the government, and the possibility of their remigration.

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16.11.2016 FIELD MISSION TIGRAY

Tigray Small and Micro Enterprises Agency Hailay

Aregawi –Deputy Agency Director

MSE plays a key role on the creation of jobs for youth and women in the region. The agency provides financial support and skill training through the 111 shops available in the region. More than 150,000 youth has been assisted by the office. Every shop includes a credit officer, an MSE officer, an extension agent of TVET and other members such as license providers. They provide the following services: Identification and registration of unemployed in the region and follow up on their status; identification of the sectors with highest market potential; provide overall information package for each business training needed, financial support needed, business plan format, etc. MSE annually prepares an assessment of the potential market for job creation per woreda. They identify the opportunities and challenges and ways to access the business. Currently, according to the CSA survey, 17% of the active population in the Tigray region is unemployed (approximately 165,000 people). They perform home to home registration to identify the jobless youth. Financial support is provided upon presentation of a business plan. The office believe that it has to improve its monitoring and evaluation activities for returnees. 27,570 people were registered as returnees from Saudi Arabia in the year 2013. MSE is working in collaboration with other stakeholders on a rehabilitation plan to support returnees from Arab State countries. A MoU has been signed between the different stakeholders to better manage the situation (MoU shared). The office prioritizes manufacturing and agriculture services There is currently no work undertaken for Eritrean refugees. Documents Collected: List of Returnees from Saudi Arabia disaggregated by woreda (Language: Tigrignya); List of sectors supported by the SME Office (Language: Tigrignya); Manufacuring strategic plan 2008-2012 Ethiopian Calendar (Language: Tigrignya); Strategic plan of Micro SMEs and Urban Food Security 2008-2012 Ethiopian Calendar (Language: Tigrignya); Market study of manpower in Tigray (Language: Tigrignya); Model business plan (Language: Tigrignya) Sample Business Plan for SME startups (Language: Tigrignya); Sample project proposal for Mushroom (Language: Tigrignya); Refugee rehabilitation plan of SME office(Language: Tigrignya); Market Study of Different sectors disaggregated by woreda (Language: Tigrignya).

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16.11.2016 FIELD MISSION TIGRAY

Dedebit Micro Finance Institution (DECSI) Ato Yohannes

DECSI is the first micro finance institute in the Tigray Region with 180 branches in Ethiopia (177 branches in Tigray region, 1 in Gondar and 2 in Addis Ababa – Branches out of the Tigray region mainly focus on money transfer services). Their focus is on food security at household level in rural and urban area and job creation for youth. Their target groups are poor farmers in rural area, micro and small enterprise operators in the urban area, youth drop outs from Universities and women headed households. Currently the institution has an outstanding loan of 3.5 billion birr. 75% of the loan portfolio was provided from deposit. Women headed households are prioritized for their services. 60% of their customers are women. The institution also works with world bank’s WEDP (Women Entrepreneurs Development Program) in Mekelle DESSI has a capital of 1 Billion Birr and a total asset of 5 Billion Birr. DECSI is owned by the following 5 organizations: REST, Regional Government of Tigray, Farmers Association of Tigray, Youth Association of Tigray Women Association of Tigray. Interest rate varies from 12% to 15%,.

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25% of proposals are usually rejected due to the quality of the business plan, but usually assistance is provided to these.

In order to reduce irregular migration, DECSI provides funding to farmers, youth, women and MSEs. Before providing funding, an assessment on the following characteristics is done: training and certification of the beneficiary; have a land or premise for production; prepare a business plan (DECSI supports the requester in making the business plan feasible and profitable as member of the one-stop shop). In addition, DECSI, in collaboration with other stakeholders, provide support to the returnees. The challenge identified is the lack of asset or capital of the returnees, therefore different loan schemes are being arranged: Group collateral Guarantee system by the government, by individuals or interested

institutions Matching funds Credit guarantee funds Physical asset collateral loan (for those who have asset) In the urban areas, their service is provided in a one stop shop in collaboration with the partner organizations like SME, TVET, BOLSA and Youth and Sports and in the rural areas the service is given through an agent. The Institution prioritizes the following sectors for its services Manufacturing Metal work Wood Work Textile Tour Operation Urban Agriculture In the past years average amount of loan provided by the institution was between 30,000 and 50,000 ETB. The maximum amount of a loan is 10 million ETB Documents Collected: List of financed sectors aggregated by woreda (Language: Tigrignya)

17.11.2016 FIELD MISSION

Bureau of Agriculture

The Bureau of agriculture provides technical support to BOLSA and MSE’s for on-farm and off-farm job creation. The bureau with a coordinating role provides the following services: capacity building, identification of

34

TIGRAY

W/ro Tsigie Fisseha, Livelihood Coordinator

agriculture sector with job creation potential; supervision. Chronically food insecure households are targets of the Bureau. The bureau has also prepared value chain analysis at woreda level on dairy production, honey production, irrigation etc.

17.11.2016 FIELD MISSION TIGRAY

Tigray Chamber of Commerce Ato Birhanu

Leggesse, Secretary General

The Chamber of Commerce is a non-profit and non- governmental association of private sector actors. The Bureau organizes forums, workshops, public private dialogues and studies to create an enabling environment for trade and investment in the region. Currently there are 45,000 members, where 2% are women, and 42 city chambers and 1 regional chamber. The numbers of its members are expected to reach 60,000 in the current fiscal year. It is creating opportunity for 54 investors to participate in the newly established Agro Industry Park. Tigray Chamber of Commerce has played a great role in facilitating loans from Ambessa bank, Bunna Bank and Development Bank of Ethiopia. During public private dialogue, the Chamber of Commerce negotiates the expansion of area for private companies, easy access to foreign currency and L/C and the reduction bank bureaucracy. In addition, the association has organized the finance institution forum and the Hotel and Tourism forum. They have also planned to organize additional forums on Export & Import and Audit and Accounting. Tigray chamber of commerce has been recognized as a model across the country for its easy accessibility for its members and other public institutions. It was indicated that the expansion of investment has a major impact on job creation. The Chamber of Commerce has identified the following as intensive job creator sector: Metal engineering Ex Mesfin Industrial engineering – They play a great

role in subcontracting to SMEs Manufacturing (Textile , Leather ) Eg. MAA Garment, Velocity, Itaka

Spain are creating up to 80,000 jobs Agro-processing (mainly in south and north Tigray) Mining Hotel and Tourism One of the main opportunities identified by the Chamber is their influence on policy making through the public-private dialogue platform, Also non-member business communities are benefiting from this initiative. This also builds accountability and availability of information that benefits both parties. However, the association also identified the following challenges: high level of bureaucracy; shortage of energy and water; incentive abuse by the private sector; lack of foreign Currency; lack of skilled manpower in auditing and consultancy services; information gap. The association also provides different trainings to its members in partnership with other organizations. The following trainings has been mentioned as an example: book keeping, tax reporting, project management, leadership.

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18.11.2016 FIELD MISSION TIGRAY

Youth and Sports office Dr.

Gebrehiwot, Bureau Head

Ato

Tesfamichael

The Bureau of Youth and Sports has 19 sectors (governmental sectors, religious sectors and associations) where activities are undertaken according to the 5 year as well as 1 year strategy of the bureau. Monitoring is conducted every 6 months. The Bureau deals with migration issues as a priority for the region. They have signed MOU between stakeholders (TVET, BOLSA, SME, MFI) to support returnees and jobless youth. The region has allocated 251 million ETB for the creation of employment to youth. Together with DECSI, different loan schemes have been arranged for the urban and rural areas. The loan schemes require that the borrower saves 20% of the loan amount and the rest will be provided in terms of loan. On the 52 woredas, there are 21 migration prone woredas. Even if migration has reduced in numbers, still the attitude towards migration needs to be addressed. There are several cases of remigration in the region. The main reasons of the decrease in migration outflows are the following: the return of 33,195 migrants from Saudi Arabia to the region in 2006 (EC); the events in South Africa (Attacks on businesses owned by foreigners, Ethiopians were also the victim of this attack and this has been shared); the reduction of traffickers in the region (the region has identified around 250 traffickers and legal action has been taken on some of them); the proclamation on oversees employment. From 33,195 returnees in 2006, 17,170 are currently employed or self-employed. Most of the returnees have participated in irrigation, poultry, fattening, honey production, metal work, building construction and block fabrication. Mekelle University along with the concerned Bureau’s has been conducting a study in selected 7 woredas to assess the push and pull factors of migration. Currently, data have been collected and the Bureau is waiting to receive the first draft of the study. Dr. Kinfe Abraham, Population Institute Head in Mekelle University, is the lead of the study. Following the study by the Mekelle University, Axum and Adigrat University will also conduct similar studies in their respective zones. The office has no programs for refugees from Eritrea or other countries. Documents Collected: Tigray Map and Woreda Data (Language: English); Power point

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presentation on Illegal Migration of Youth (Language: Tigrignya); Unemployment statistics aggregated by woreda and Gender (Language: Tigrignya).

21.11.2016

GIZ Sustainable Training and Education Programme (STEP) Ms. Isabel

Rapp, TVET Advisor

Ms. Isabel Rapp is TVET advisor in the project “Sustainable Training and Education Program (STEP)”. According to public policies, about 80% of TVET graduates should end up in self-employment which is believed to play a crucial role in minimizing the Irregular migration. TVETs suffer of some limitations that could be addresses, mostly concerning teacher qualification and motivation of students. There are 800 TVET colleges in Ethiopia, and 250 of them are Lead Cluster College (LCC). In Addis Ababa there are 5 LCC (Tegbared, Entoto , Misrak , Winget and Nifea Silk). Supporting these lead cluster colleges (LCC) can have important effects on the others too. The Federal TVET Agency is facing important challenges and could be supported in several areas, e.g. on the development of curricula.

21.11.2016 OROMIA FIELD MISSION

East Shewa Irrigation Development Authority

After the mission team opened the meeting with explanation of the SINCE project and purpose of the visit, which will help to gather input in the formulation of the project. Ato Motuma mentioned the following points: - Rift valley is the main source for many agricultural products and they

have enough experience. - According to him strong value chains that already exist in a rank(based

on land coverage & value) are: onion, tomato and green bean. - Onion and Tomato cover 70% of the value chain, while Green been

account for about 10-15% Regarding women involvement in the farming, he stressed women are preferred for quality work and care. As a major challenge for the value chains in the area it was pointed: - People who are leading the market are not people who added a value

(Brokers) - Lack of linkage b/n producers and consumers - Lack of Post harvest handling specially for products like Tomato. - Unavailability of storage, which could have given more time to

negotiate and look for better price - Lack of quality inputs like seed, chemical, technology. - Water saving was also mentioned as an issue, since more farming is

created with little water

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Specific to training it has been stated there is a need for training starting from land preparation to production, as an example it was mentioned: Green bean has been successful for export, with instructions and training provided to the farmers on the full value chain. It was also stated there is a need of training at Woreda level experts. Capacitating the government offices was also stressed especially with regard to mobility (like Motorcycle and cars). They believe this lack of mobility has affected the supervision.

21.11.2016 OROMIA FIELD MISSION

Bale Zone Cooperative

During the visit of the Bale zone Cooperative it was presented in short what the activities of the Cooperative office. Which is to establish legally and to support on making sure following the cooperative rules and regulations. And It was suggested by the officer and agreed to provide by email the data (segregated by gender and age) of the cooperatives in the Area.

21.11.2016 OROMIA FIELD MISSION

Melkasa Agricultural Research Center

During the discussion it was noted the research center targets tomato, onion and green beans. Also stated this days youths are being involved with tropical fruit seedlings. They are coming for training and establish their nursery. It was also stressed the governments direction to develop horticulture as its not progressing as expected. They have huge pressure from government side on job opportunity, export & nutrition especially on their mandate tropical. Horticulture is a big priority which is being supported with tax exemption, loan priority etc Regarding challenges it was mentioned the center has a problem to address seedling request because they have limited capacity. They couldn’t satisfy the request of investors, farmers & residents. According to the

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feedback he got the youngsters who invest in this are getting a good return but not sure about the sustainability. According to his suggestions: - if any project comes, the government will give priority and facilitations. He stressed Horticulture is knowledge intensive and complex, so national programs can provide trainings. - Any seed collected from juice shops can be used as seed stock, since it has adapted locally. The challenge is sign material after one year. - Onion seed is being sold around 800 -1000Br mostly by individuals. Suggested since it has huge demand youngsters can handle in cooperatives.

- In the case of Tomato seed, it’s a bit difficult relatively. It needs attention. To extract 1kg seed, it needs 100kg fruit. He suggested Tomato seed production can also be integrated with Tomato processing factories. With regard to Melkasa contribution he said their role is providing

input, production follow up and transport mechanization, training etc but handling pricing and brokers is more of regulatory - Non hybrid Onion production is 300-400QT per Hectare, For tomato its 400-450QT per hectare, hybrid can reach up to 800-1000QT - They don’t have the capacity to produce the hybrid seed at all. They have started working on it but they need support. They need to develop green houses, develop the capacity of the researchers by exposing with short trainings. According to him training one from onion and one from tomato experts is a good idea. Training for tomato can also address the green bean skills. Ato Mohammed was requested to prepare a short concept note stating their needs and the possible outcomes once the gap has been has been addressed: Where in the value chain they need intervention The investments they need How many people to train What kind of improvement is expected after the Intervention

21.11.2016 OROMIA FIELD MISSION

Kulumsa Agricultural Research Center Nov 21, 2016

The team briefly explained the project objective and asked what kind of gaps that can be supported within the project framework Ato Zewge pointed:

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Around Kofele Enset takes long years to flower and to be utilized as Kocho. At kulumsa they have a success story to radically reduce the number of years.

Around Asela there are a lot of Enset which are abandoned. The plants potential can be used to produce 50-70kg Kocho. He suggested to train the youth and women to buy this plants and process them for Kocho.

Improved seedling of Enset is being distributed by them but is not sufficient.

Potato variety named BELETE yields around 400-500qt around kofele They don’t have seed store for potato at research level. They have shortage of chemicals at farmers level There are potato seed producing cooperatives but they need stores. Garlic seed production is also another potential for the youth

22.11.2016 TIGRAY FIELD MISSION

MEI, Mesfin Industrial Engineering Awel

Mohammad,

Merhawi Desta,

Ato Zeresenay

Description of the structure of the production of MIE (4 business division) and identification of the most labour intensive (HDVL, heavy duty vehicles and locomotives). MIE has extensive experience in subcontracting. On top of this, the government intervened to promote MSE subcontractors. Now most MSEs are not working because they are renegotiating the conditions of the contract, but they expect to will start again in 2017. Identification of the bottlenecks of these MSE subcontractors: finance, competence in management of production, raw material purchase. Analysis of the HDVL value chain and production process and estimation of cost of imported raw material. Identification of production with highest demand and growing market (again HDVL). Analysis of the relationship with TVETs concerning training in welding.

22.11.2016 TIGRAY FIELD MISSION

Regional Office of Urban Development, Trade and Industry Ato Guesh

Description of the cobblestone value chain; identification of the 2 groups of promoted MSEs: cobblestone manufacturing and road paving. One of the attempts has been to close the gap between quarrying and manufacturing, by moving manufacturing activities close to quarries. There is a problem of manufactured stones price, that is too low (2 ETB/piece, but gets to 50 cent according to other sources), and quality decrease. Standard work is 28-30 pieces /day/person. Last year about 70 km have been paved

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Menkr, Ato Yoseph

22.11.2016 TIGRAY FIELD MISSION

ULGDP (Urban Local Governance Development Program, WB) monitoring and evaluation office Ato Mebrahtu

Grmay

8 cities in Tigray have a development plan for next three years. Funding provided by three sources: WB, regional administration, municipality. In Mekelle last year there have been 44 sites of cobblestone paving, and 77 mln ETB contracted out. Employment in paving: 920 men + 630 women = 1,550 people. These people are employed for one year, in order to accumulate savings to be used as seed capital for then start a MSE in another sector.

22.11.2016 TIGRAY FIELD MISSION

Mekelle Textile and Garment college

Makalle college inaugurated in 2004, for the purpose of incubating micro and small enterprises only under the bureau of trade and industry. In 2010 was incorporated within the Ministry of Industry. From 2010 until now is under the bureau of TVET, in 2010 became a college specific for garment. Textile, garment and leather are the three programs running now; the next will be industrial machine and IT. They have already the machines but they need expertise From 2010 they trained around 2000 youngster (after grade 10) from level 1 to level 3. TVET levels in Ethiopia are level 1-5 - 1-2 simple operators - 3 technicians - 4 middle managers - 5 production manager the industry currently demand only 1and 2. The College has 3 main objectives: prepare well skilled man power with better attitude knowledge and skills; incubate technologies that appropriate to MSEs; support MSEs technically 100% of students within 6 months get a job: 87% work in T&G industry, 13% work on other businesses. High turnover because of low wages: 700 birr/month MAA garment few years ago. 94% [out of the 87%] work in big factories; 1) MAA garment [TVET students 200, 1200-1500 employees total]

starting from cotton to garment 2) ITACA Calzedonia group [30 graduates from TVET] 3) DBL [they will need 3000, until May they will need 500] 4) Velocity (India) [they will need 5000, currently only 500, 300 from

TVET college] 5) ALMEDA textile in Adwa [Ethiopian, 6500 employees, planning to

expand to 60.000 in the next 5 years (mostly for yarn production for export and local). Owned by EFFORT, Tigrinya people]. Fully integrated from cotton to garment. Cotton harvesting around Humera (Selam mechanization cotton harvesting) – a) problem is harvesting – b) problem ginning, old machines; - c) yarn production machine good, but skills of operators are not enough. Quality of the cotton is not good. D) Spinning and weaving is not efficient and over the last ten years has been losing. E) garment production is becoming more efficient because of H&M, etc.

6) MY garment [former MSE that graduated and now became industry. 30

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former graduates] 7) Soliana garment [former MSE that graduated and now became

industry 12 graduates] 8) TES garment factory [Ethiopian company 30 former graduates] 9) 1100 MSEs working on T&G in Mekelle only. Some of them are their

graduates, who then employ 1 or 2 other graduates Cotton is imported because of export restrictions. Now also yarns and fabrics are imported. MAA is 99% exporting yarn, garment, and fabrics. Currently there are big buyers supporting export: H&M, Hans, Davids, Kik! (Ok), Primark, Calzedonia, Edwards, NJ, Policoncert, ITW, VVH, TLAC, CID, TAKKA. But the problem is that big buyers don’t come here. Industrial park under construction, expected to be finished in April [25.000 youngsters are expected to be employed + all the self-employed 15.000 franchising and marketing cluster linkages] composed by 75% foreign investors, 15% local investors, 10% medium enterprises that have graduated and have enough capacity and capital. DBL, ITACA, Velocity, Indian company, and Turkish company, already committed. So when the industrial park will be ready it will be immediately functional, differently from that Hawassa case. Clustering small and big companies: big companies sell to retailers, when small companies need raw material. The problem is that value additions is captured by middlemen. Needs: lack of skill training for small enterprises on quality standards and label, lack of market penetration and of technical skill. Lack of common Ethiopian quality standard, this creates problem. Lack of market linkages. Sometimes there is problem of doing orders in time for big companies. Production could be outsourced to small in cases they need more production. This could create jobs. Gap between training institutions, big companies and small enterprises. Therefore, there is the need to organize communication, commitment and integration, facilitate twinning programmes. It is matter of communication, commitment and integration. For big companies: creating facilities around the big companies for convincing people to stay. Colleges, infrastructure, etc. minimum wage should be established for garment. Problem is creating employment and avoid turnover. Incubating MSEs for women and youth. The T&G sector is attracting a lot of returnees and potential migrants. There is a high demand from migrants: last year 112 returnees from Saudi Arabia. Eritreans prefer training on garment and textile because then it is simple to get a job. Overall there is a direct correlation between training and employment creation.

22.11.2016 TIGRAY FIELD MISSION

Entrepreneurship Development Centre (Mekelle University)

Trainings: 1) ETW-based, entrepreneurship training workshop ( soft skills) 2) Pronet (GIZ) ( technical skills) Conduct business idea competitions among students; technical and professional support; mainstream entrepreneurship into high school, so they run sensitization programmes an workshop with at school level. Trainings to 5000 students MSEs invited to training sessions. Mix with students and sometimes bring students to them. Since MSEs don’t grow, they did a study on challenges of MSEs: mind-set of youth of getting serious about doing business; access to finance; managerial skills; drop out from TVET and other schools. The GIZ does technology transfer, provide ToT to their staff. Mainstreaming the curriculum to elementary school and secondary school. Inspiring the youth to business creation.

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Manufacturing sector: textile and garment, furniture metal and wood work, agriculture, poultry.

23.11.2016 OROMIA FIELD MISSION

Dureti Seed Multiplication Cooperative Society

Sheik Ahmed pointed: - The cooperative was established with 2250 capital (50br each). - They used to sell to Union based on 15% profit margin - They had issue of storage, materials and finance. Other NGO developed storage for them, which helped them to store items and negotiate. - They used to sale wheat for bread, but after meeting Durum wheat project of Italian Cooperation, they started working on durum wheat and contract farming. - They have a tractor bought from ACDIVOCA - They have a challenge to find seed since farmers understand to rotate crops they need varieties. - Bread wheat seed is available but durum wheat seed is very scarce, - The management of the bread and durum wheat is the same. Except special treatment for the durum to have higher nitrogen, more urea is applied.

There are youth (3 men and 1 woman) that already have land but in

groups have received computers and printers to start business center. They work in collaboration with Postal office and Ethio telecom. They will provide printing, binding etc services They are 12 complete and college dropout youngsters On the plus side it’ss an advantage that can be done during idle time while not farming. He Suggested: There are youth who are currently organized and working to load and

unload, they can be trained further for other better tasks Carts can be bought for use as a collection for the youth

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23.11.2016 OROMIA FIELD MISSION

Agarfa Woreda Administration Office Nov 22,2016

After the team explained the purpose of the project and the join mission, Ato Siraj Provided a hard copy document (in Oromifa) showing the number of unemployed youth that are ready to be addressed. It was further agreed to work closely with the office for any additional input for generating employment in the woreda.

23.11.2016 OROMIA FIELD MISSION

Agarfa ATVET College Nov 22, 2016

During the visit at Agarfa ATVET College it was pointed: - They don’t provide community service like University, but they provide technology transfer and trainings etc to the community - Its also teachers responsibility to find new ways and technologies besides the day to day teaching activity for the community - They are working on Malt barley seed multiplication - They have been directed from higher officials to work on improved seed and if the weather allows they will continue. - There have been land requests, but they don’t have the authority to provide any. They always direct the request to the minsters office; if the project requires land it has to involve higher officials besides the college. - They have a success story of youth in the compound who stopped stealing after involving them in construction in the compound. - All the graduated students are assured to find jobs, since they come from woreda for pre - job training. - Currently they have 1300 students. it takes 2.5 to 3 yrs to complete - It was mentioned In bale there is a huge scarcity of horticulture products. Trainings: They have courses for common competencies like agro business,

entrepreneurial ship etc They have 3 departments namely Animal science, plant science &

Natural resource They are hiring additional 5 teachers to fill the need. They are willing to provide training for the cooperatives and organized

youths on the available courses. They have level 1 and level 2 training for the farmers

From level 1 to level 4 they have complete trainings They don’t provide on mechanization, a new one to be opened around

Alage.

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Accommodating for short term training in the compound is not possible because of scarcity of dormitory. If needed, the best time would be at break from the major school time.

Another option of training is to use FTC(farmer training center). Trainings can be provided on crop production (Wheat and Barley) , on

animal science (fattening and poultry) cost estimation for trainers is not defined but it used to be roughly

150br and now 500br excluding professional fee. Needs: Training needs that can be addressed by the project to be compiled

and emailed by Agarfa Management. Regarding the question to support the local youth to use the college

land and produce for the university consumption, the management has agreed to discuss and email the way forward. It was also mentioned the ready lands they have require a huge pump.

They need finance support to buy machines

23.11.2016 TIGRAY FIELD MISSION

GIZ, Mekelle Polytechnic College

Public TVET. GIZ is supporting in technical monitoring and cooperative training. Cooperative training is inspired by the German model: students do 70% of works in firms and 30% theoretical classes.

23.11.2016 TIGRAY FIELD MISSION

Elyas Power Company Ato Haftom

Produces food processing machines, TV satellites, and other implements for agriculture. They have market problems and reduced the employees from 35 to 8, so they are not working at their full capacity. They had a big decrease in demand mainly from private buyers. Their main problem is import costs of raw materials. E.g. they don’t manage to produce products that are aesthetically as good as Koreans because they cannot buy stainless steel (it would make costs rise), and they don’t manage to produce cheaper than the Chinese. Raw materials are about 60% of costs. They have students from TVET to do practical training, but they are not followed, they risk spoiling the machines because they lack basic skills.

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23.11.2016 TIGRAY FIELD MISSION

Recycled metal MSE Ato Abraham

Ato

Gebrekrstos

The produce metal products (tankers for trucks, pieces for cars, etc.). They use 80% of scrap and 20% new metal sheets. They are mostly Ethiopians who were living in Eritrea and came back because of the war. They were organized as an enterprise made of small (mainly individual) workshops by the government, but they lack connection to electricity and machines. When the support ended, the demand for agricultural implements that they received from the government ended too. They believe in an increasing private demand, mainly from contractors. They are very competitive (900 ETB vs 5000 for an exhaust pipe). The profit margin for a piece is 20-25%. He estimates that, if the power and machine problem is solved; he could hire 5-6 people.

23.11.2016 TIGRAY FIELD MISSION

Sami Machine Work Ato Tesfu

They produce traffic signs, machines for construction (cutters, machines to produce hollow blocks,) and ovens. They have 15-20 employees and 10-15 MSE subcontractors. They sell to the municipality (traffic signs) and to private companies. Wages range from 2,000 to 4,000 ETB/month. They work at their full capacity, and they need more space: they are opening a new workshop of 1 sq km where they will employ 300 new workers. They asked land to government even if they are not MSE, but private company. They plan to hire trainees from the TVET polytechnic college: they are ok, besides the normal difficulties at the beginning. The buy locally the raw materials, and sometimes import.

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23.11.2016 TIGRAY FIELD MISSION

Metal and wood MSE Ato Aklilu

Haylu

He owns a small enterprise with 15-20 employees; he does wood work for private buyers (ha has a showroom in town), hotels and churches, office furniture, bed and cupboard, doors and window. Mostly wood, but also metal. Cost of raw material is 60-70% of total cost, both imported and local (mainly local). He has mainly individual buyers. The government demand (furniture and agricultural implements) ended with the end of the support project, now the tender system is too difficult for them. The project organized him and similar firms in a cooperative of 193 small firms. Today they don’t share machines, or bulk production or input supply. The role of the cooperative now is to advocate for obtaining land (they obtained 500 sq m).

23.11.2016 TIGRAY FIELD MISSION

MSE regional Agency Ato Tilahun,

head of the Agency

According to him, MSEs are better than wage employment because they imply attitudinal change. The most profitable sectors are urban agriculture services and trade. But construction has higher share of employment. Data on regional presence of MSEs. The employment objectives correspond to the unemployment in the urban areas in the region (250,000 people). They promoted 12 MSE compounds in 12 cities (in Mekelle there is the biggest one, for MIE subcontractors) + 5 “flexible workshops” (each 100 members). The open problems are: lack of skills, price and quality of raw material, lack of commitment. The future of MSEs as subcontractors depends on skills development. They realized that metal work and wood work are intertwined. Construction: MSEs can do construction up to 5 mln ETB: rural road, water projects, electrical installations, concrete polls, fibre lines. NB. Tigray has comparative advantage in stones (marble, granite, etc.).

23.11.2016 TIGRAY FIELD MISSION

Tigray Chamber of Commerce, Manufacturing branch Ato Berihu

Data on enterprises registered at the Chamber of Commerce in the region. It has to be noted that small and medium enterprises are more likely to be members of the Chamber of Commerce because they need more its services. So, among their members, big firms are under-represented.

23.11.2016 TIGRAY FIELD MISSION

My Garment Textile Company

Skill development: trainings are not enough: trainings are done with single needle machine, whereas industry use interlock machine, multiple needle machines etc. It is difficult to get skilled people from TVETs. Concerning training for skirt, they should see what are the trainings in other countries, the competition is global

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Need to work in integration with bigger factories; need to reform the curricula and aligning them with the industry; need to follow students after they finish the trainings. Selling space: They need selling space in town, advertisement, to connect the production with marketing, the potential demand is high. Access to capital: (500,000 Dedebit MF) MFI give little money to develop the sector, because they fear that people don’t pay back. But now the problem is that capital access is limited. Their philosophy is going by themselves. Production space: They are going to move to the industrial park. Industrial park is only for export, their target is to become exporters. They haven’t got approval to get space, they simply submitted the demand. Ready-made garment producer, get fabrics from MAA and ALMEDA, leftover of production. 60 ETB/kg. Now they grew and also buy fabrics. T-shirts, pack out, shorts, pyjamas, children’s wear mostly. Employ 32 people, business started in 2013. Lease some machineries from Business Bank of Ethiopia. Try to get order from MAA. If the development bank is going accept to their request for machineries they plan to hire 150 more people. Challenges to scale-up: MSEs don’t get close follow-up. Sometimes they just need guidance, not necessarily finance. Integrating the small with the big would be possible but there are some constraints. Sub-contracting would avoid them to have to get the WRAP certificate: pay to get to the international market; problem is communication. On the coming of big investors on textile: Positive: inputs from other big companies. Negative: employees might want to go to the big factories. Accessories, dependent from Merkato in Addis. 2 most pressing issues are: facilitate access to capital [links to commercial banks and MFIs] and export [connection with customers, means of communication with suppliers and other buyers for African markets, shopping space, access to market].

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23.11.2016 TIGRAY FIELD MISSION

Don Bosco College – VIS Ngo

Short term trainings currently available in - metal working - wielding - auto motive engine - automobile body repairing and painting - secretarial science Each class is normally made by 40 students, courses run for 4 months, and the maximum capacity by Don Bosco to host simultaneous trainings is for 120 people. The cost of short-term trainings for existing classes is about 40,000 ETB/class. This is not covering all the costs in case one will want to provide a course on a new topic, including machineries and the full cost for salaries of trainers, as well as trainers of trainers. Estimating the full cost of a new training is difficult, it can be estimated at least 100,000/course, for a cost per student of 1,600 ETB. Don Bosco has experience in running external short term trainings, an example are those provided in collaboration with VIS, about creation of income generation activities for preventing human trafficking. As far as there is market demand, Don Bosco is able to provide trainings by planning them in advance. Salesian sisters in other missions in Ethiopia are already working in traditional garment production through handloom. Asked whether Don Bosco could potentially partner with TVET in providing new trainings on textile and garment production, the answer was on the positive. An example is that 20% of training is given by Don Bosco, and 80% directly at TVET with technical support from Don Bosco. It will not take more than one year to establish a new workshop, let’s say for textile, even in case new building needs to be constructed and machineries imported. As the demand for T&G is high, that would probably constitute a very nice investment. They suggest us to meet with the Don Bosco mission in Addis for more details on how to organize new short-term workshops. Short term trainings are normally aimed at providing basic skills, but Don Bosco has the capacity and reputation for providing also advanced trainings. One potential field of investigation is exploring the opportunity to create synergies between TVET, Don Bosco, and the private sector in textile and

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garment production.

24.11.2016 TIGRAY FIELD MISSION

Velocity Textile Company

The company is owned by Indian businessmen and currently employs 550 people. However, a significant expansion of the operations is scheduled for the next few years. The owner plans to hire additional 8,000 people in the

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next two years, and to have a workforce of approximately 12,000 in the next five years. Velocity focuses mainly on the production of garments, which is sold to big international buyers currently operating in Ethiopia, such as H&M and G&T. Fabric and yarns are directly imported from India and Turkey. The owner is also planning to build a number of infrastructures in the surrounding of the industrial plant, including 5-6,000 accommodation for workers, a hospital, as well as other facilities to provide incentives for people to stay. As far as trainings are concerned, the policy of Velocity is to train all the workers by itself, without requesting capacity development from TVET or other private colleges. The manager explains that all the workers have to undertake 3 months of initial trainings with machineries, as well as 6 months on the job trainings. He explains that machineries employed by the factory are very complex and new on the market, for this reason it would be very difficult for other training providers to provide adequate skills.

24.11.2016 TIGRAY FIELD MISSION

MAA Garment Textile Company

MAA Garment is a vertically integrated textile and garment company, operating under the group EFFORT. It has a total of 1,600 employees, and main products include production of garment such as t-shirts, uniforms, and hospital items. Over 80% of the production is meant for export, and plans for future expansion of the company go in the direction of further strengthening export based products. Exports are mostly meant for the European and the US markets. While the production is vertically integrated, some of the lint cotton is imported from India when the internal production from the Awash valley and Humera is not sufficient to meet the demand. Imports have kept increasing in the last two years especially. The spinning and knitting segment of the value chain employs approximately 250 people, the dyeing and finishing 140, garment production about 600, service and maintenance 250 employees. MAA is planning to expand operation by strengthening the weaving and denim production compartment, planning to employ further 500 workers in the next few years. This will also be made for export. Bottlenecks in the value chain: the first thing that is mentioned has to do with low salaries for basic operators, a fact that is behind the high turnover of employees, as soon as possibility for increased wages or job opportunities materialize somewhere else. Connected is the problem about low productivity of labour, which makes Ethiopia less competitive, and hence palatable, to international investors if compared to equivalent Asian markets. Low productivity is also an issue of lack of technical skills, a factor calling for better trainings. It is also mentioned that mechanisms to motivate workers – for instance vocational trainings – are needed to strengthen productivity. One option would be connecting salaries to productivity in a way that would incentivise intensification of labour. As far as the integration with small enterprises, it is mentioned not only that in the future synergies will be more than likely, but that there are already experiences with 5-7 small enterprises for t-shirt production with leftover from the production line, and then meant for the local market. The expansion of textile will take place mainly through industrial park. Industrial park are however only meant for export and companies can apply for a minimum space of 5000 sq/m, with the price for rent being 2$/sqm. One option for integrating small and large production is joint venture for accessory production.

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One of the main problems currently affecting the textile sector is logistics that affects the structure of the supply chain, although the railway is expected to solve most of these problems. The three main areas for intervention: 1- skill development, with a focus on sustained on job training; 2- infrastructure development side by side industry; 3- awareness about migration, and soft skills to incentivise people to stay on the job.

24.11.2016

Enterprise Partners (EP) Nayeem

Kashem

Wengel Tessema

EP is implementing a project focused on job creation in the sectors of leather and garment in 7 years (2014 – 2020). About leather, EP is planning to create at the end of the intervention 48,500 new employed in Ethiopia. In this moment they are working with 10 enterprises with the aim to increase their skills in production. For the future EP is planning to support the governmental strategy about leather exports from Ethiopia to USA. In fact they will focus their intervention on shoes export trough the collaboration with US company EFDR. About textile, EP is planning to create at the end of the intervention 70,000 new employed in Ethiopia. The annual average of the domestic market for textile is 100 million ETB with a potential expansion up to 200 million. The export has an annual average of 110 million, but according to the Ethiopian governmental strategy the amount of export should increase relevantly in the next years becoming one of the most important economic sector in the country. Also for this reason Ethiopian government has already financed two industrial parks and is planning to create a new one. In this moment EP is working in textile industrial park of Bolele, mainly implementing trainings with excellent results. Next year they will use the same methodology working in the new Hawassa industrial park that involves 20 investors. In this park there will be 8 enterprises and 32,000 employees. Most probably in 2017 the government will finance a new industrial park in Mekelle and also in this case EP will have a role for the training activities.

24.11.2016 TIGRAY FIELD MISSION

MIE, Mesfin Industrial Engeneering, HDV division Awel

Mohammad, Ato Abrham

Visit to the plant under construction. Visit to the workshop where MSE used to work. Project of production and employment expansion. The salary of a welder ranges between 3,000 and 8,000 ETB. Training: they take people from TVET Mekelle Polytechnic College, and then do 1 month training in their own training centre. It is a certified centre, also by international standards (German collaboration). Each year they train 300 MIE workers and 800 external people. They also train TVET trainers. Capacity is to provide courses for 56 people at a time for the duration of 1 month. The estimated cost per person is 22,000 ETB. Subcontractors: They aim to make the subcontractors fully autonomous firms, that buy raw materials (now they are just subcontracting labour, they are provided all inputs): it will be more profitable for firms because 10% of profits on raw material is higher than labour remuneration. For this, MSEs need finance. They have two types of subcontractors: private companies and MSEs. Parts of their subcontractors are former MIE workers. They subcontract Painting: 6 associations for a total of 108 workers Welding: 12 associations for a total of 180 workers Tyres preparation: 2 associations for a total of 24 workers

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24.11.2016 TIGRAY FIELD MISSION

MSE subcontracting welding from MIE Ato Kibrom

Single owner with 4 employees. He is an old employee of MIE. To prepare a truck, he works 5 days for 8,000 birr + 1,5 days to assemble it (2,500 birr). All input are given by MIE. He would like to be autonomous and to work for more than one buyer, but he has no capital to do this. Subcontracting is the way for those who don’t have capital. There have been time of lack of work; in that case, he does other jobs outside.

24.11.2016 TIGRAY FIELD MISSION

MSE subcontracting painting from MIE Ato

Gebremhdin

Association with 10 members (4 women), some former employees of MEI. On average they paint 1 truck per day (in reality it takes more days to do one because of waiting times). The price of a truck+trailer is 7,500 ETB (only trailer 3,500 ETB). After they get paid, they subtract taxes and then share equally (about 4,000 birr/month each).

24.11.2016 TIGRAY FIELD MISSION

Bokra Construction Northern Branch Ato Abrhaley

Contractor Grade 1. Almost exclusively government projects. In Mekelle they have 4 sites all for the University. They employ 10-15 permanent workers per site, while temporary employment varies a lot (from 40 to 300 per site). They subcontract to construction MSEs all the non-structural parts: carpentry, plastering (L intensive), HCB (L intensive), masonry works (L intensive), berbeling and cutting, tiling (L intensive), painting, electrical works, sanitary works, greenery. The initial agreement with University included that the subcontractors At the beginning they were subcontracting to MSEs. These were composed by 10-15 people, but they were facing some challenges (they all had other jobs). They have been replaced by smaller private enterprises (2-4 people). Some of these owners are graduates from TVETS, but their workers not: have only experience, not training. Daily wage for employed for whole project = 50-80 birr/day Daily wage for daily labourers = up to 120 birr/day (now e.g. there is shortage of workers because it is harvest time). They are now working below capacity because lack of public demand because of the draught (they don’t have early stage projects).

24.11.2016 OROMIA FIELD MISSION

Bale zone Administration

After an Introduction of The team(UNIDO and Italian Cooperation), The purpose and area of the project was briefly presented. It was also stressed the need to work on existing value chains instead of starting from scratch since the project duration is too short.

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The head mentioned, FAO is also working on youth and is being supported on selection of the target youth. They have already developed criteria to choose. FAO is working on 20 project associations with 20 members working on 10 kebeles. The youth have already selected the areas they wanted to work on. Yosef mentioned 10,000 youth is targeted to work with and the Zone assistance is crucial. He also stressed FAO could be the one implementing the project, since the project is expected to work on existing activities. The Zone vice confirmed they are ready to corporate on every level of this project. It was suggested to create awareness by inviting all who will be involved and identify challenges and opportunities. Also warned the past experience of other projects, which were not implemented or impacted much.

24.11.2016 OROMIA FIELD MISSION

Bale Zone youth and Sport

During the short discussion the team explained, the purpose of the project and field mission. The importance of the office for this project was also stressed. Due to the pending meeting they have, it was requested for a data regarding the jobless groups of youngsters in the district. It was agreed data to be compiled and be emailed in the next couple of days.

24.11.2016 OROMIA FIELD MISSION

Bale Zone Land Administration

During the short discussion it was stressed the scarcity of land and such requests need a formal letter even to discuss for such meetings. Though he confirmed the availability of lands in each woredas, the process of acquiring can be difficult because of high rate of demand. It was stressed its possible for some woreda to say they have land available but might not be the case when verified with maps.

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24.11.2016 OROMIA FIELD MISSION

Bale Zone SME

During the shore discussion it was mentioned: - They coordinate the 20 woredas and work in both urban and rural areas. - Jobless youth from each kebele are selected, then based on their capacity and need will be organized in two and above. - Micro finances provide loans up to 200,000br based on presented business plan. The interest rate is 11%. - They assist in preparing business plan and acquiring land - The idea of using college abandoned lands for production was mentioned as PPP. The office advised to ask higher officials since the land is owned by federal - Regarding data, he advised to ask woredas since they have detailed data. - He finally confirmed they are ready to collaborate for the success of the project, even they will move around together with the project team if needed

24.11.2016 OROMIA FIELD MISSION

Bale Zone BOLSA

During the discussion points mentioned were: - They have data regarding the job less youth - Its there responsibility to create awareness - It was noted number of migrating people is increasing. - They record data about those who left, returned and started working. - They work closely with SME and TVET. They register, create awareness and transfer it to SME office to handle the rest. - Although there is no formal study to identify the reason for migration done by them, he believes one reason is looking for better opportunity and another is peer and family pressure. He stressed the need of research to identify exactly the reason of immigration - They have department working on migration. - Among the 20 woredas, Agarfa and Gassera are the most prone for migration.

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24.11.2016 OROMIA FIELD MISSION

Kofele Woreda Raya Kajewa Cooperative UNION

On the on site visit of the Kofele Woreda Raya Kajewa Cooperative Union the following points were mentioned: - They have 12,000 members - They own seed preparing, with total cost of 1.5 million birr. Out of which 1.2 million birr is for buying the machine. - Malt barley has big attention in the Area because of the high market around there. - The have contractual agreement with beer factories, currently with BGI - They also supply 10,000Qtl Assela Bekel out of the 100,000Qtl demand. - They have big challenge from privates. Even though there is enough production, brokers financial capacity and convincing skills is attracting farmers more. - Oromia seed enterprise supplies the seed for them. But at some point seed variety named “Traveller” was supplied by Heineken and has a good output. - The union buys from farmers 900br and they sells at 970br. After deduction of administrative costs usually they get 20-30br profit per quintal.

25.11.2016 OROMIA FIELD MISSION

Alage ATVET

The institution is located more than 35km far from the main road around Bulbula. Points mentioned during the discussion with a farm manager on behalf of the dean was: • It covers 4220 hectare of which only 180 is utilized for farming. They

also have diary • It was stressed one of the major activities of the institution is

Technology transfer. • They have around 3000 students • They have done a study around the college to explore the need of the

farmers from the college • The produce onion, cabbage, tomato, beetroot, carrot, banana, papaya,

mango • They have water reservoir which they use in summer time

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• Because of the availability of many types of farming , universities use the site for training like Dila University & Walita University. They also have slaughter house.

• They are willing for any collaboration of the project, it was stressed they have enough machines for training but sometimes they have shortage of water

25.11.2016 OROMIA FIELD MISSION

Meki Batu Union

During the discussion with Meki Batu Union Management it was mentioned they work on Green beans, tomato, onion, potato and egg plant. And in regard to processing they Already have documents (feasibility study, environmental study, marketing strategy, branding) developed to set up tomato processing factory in collaboration with PEPE(Private Enterprise Program Ethiopia) which they will present to the public on Dec 4 in Adama. As a requirement it was mentioned they a consultant to base with them for one year to set up the factory and make sure its running properly. The total project is expected to cost 52million birr. They are already finalizing to acquire the land within the city and contacted machine suppliers from Turk india, china and italy. According to their analysis so far Italy is the most expensive (company named FIENCO). They are expecting to get 70% as a loan from development bank . After the factory starts production they will need around 300Qtl tomato per day(120 is wastage and actual is 180) and they plan to produce: tomato paste, tomato juice, ketchup. As a bottleneck to get this amount of input “Tuta Absoluta”, tomato disease, is a huge problem currently. It was also pointed Ethiopian Airlines is one of their client and has created a job opportunity for 40 women in the pack house - The Airline takes 40qtl of onion every week - Processing is also possible for the Airline if they had the machines and

would create more jobs - They already have agreement with Ethiopian Airlines to promote the - Though the union rejected the idea, the airline has requested them to

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supply additional items like milk, meat etc. Regarding Green beans it was pointed it can create many job opportunities for youth and women since they can be involved in picking. It was also stressed they work 3 months per year and usually engage while other countries like Morocco are not producing green beans The manager also added Germany promotes and supports working with smallholders instead of big investments that is an opportunity to work together. The union can provide quality green beans but lacks certification (which costs around 500,000br) They have started the contact to import seedlings from Italy(company named SUBA) and have prepared land. They will import samples then test and distribute. They will also work on multiplication. The manager also indicated Many job opportunities can be created with Tomato processing and export. More job opportunities will be created with the new projects on irrigation but could be difficult to find land for organized youth in irrigation Area due to shortage Regarding the supports they need it was mentioned: - Machines for value addition like washing, peeling, processing etc. - Bigger tracks with Fridge (costs around 3 million Br) - Support to establish pack house in Addis Ababa around Bole - Support on setting up seed multiplication center.

29.11.2016

Land O’Lake International Development Fund. Dr Zelalem

Yelma

In Ethiopia 24,000 cooperatives exist (on all sectors) and more than 8,000 are agriculture based, of which about 200 are dairy cooperatives. They work in the 4 regions targeting 140, 500 farmers of which 70% are women. They have developed 14 selection criteria to identify the farmers. There are two Unions on dairy: Assela dairy cooperative union and Selale Dairy cooperative union around Suluta they have about 3000 members and collect 10-12 thousand milk every day. There is a problem of low production: e.g. one Israeli cow is producing equivalent to 33 Ethiopian cows. The major reason for low production are genetic material, feeding and health, The genetic material problem is not addressed within this project, since it takes longer than the project duration. They have established five, four, three and two clusters in Oromia, Amhara, SNNP and Tigray respectively. They have a plan to provide 1million artificial insemination (AI) services. They have developed a curriculum based on National Insemination Center indications. They have 3 kinds of training: TOT, Refresher and New AI Technicians. They have special training for the AI technicians which will train the farmers later. Challenges: input supply is an issue, although the number of cattle in Ethiopia is big, Ox is very important. There is lack of AI technicians. They are planning to provide motor and AI shield based on liquid nitrogen to keep the semen for long with needed quality. In their strategy, 30% of AI technicians should be women, which is not yet achieved. They provide a dummy cow that can be used for collecting semen, with artificial vagina, cost 20,000 USD. The plan is to train 500AI technicians ready i.e. 1AI for 281 farmers Suggestions: In Amhara there are 65,000 graduates without a job, which are potential migrants; AI technician is a potential area for creating jobs; there is a plan to train 20,000 youth in GTP 2; In other countries farmers don’t pay directly for AI, kids school fee and others fee. The cooperatives

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handle such things and deduct from the final payment of the farmer. Technologies: they have “public based data capturing system” to collect data instead of using paper based questionnaire. He believes that technology tools like market information, feedback system and remainders can benefit farmers.

5.12.2016 AMHARA FIELD MISSION

Amhara BoLSA Ato Menberu

Werku, Job creation and promotion Department Head

Our first meeting was with the BoLSA. In the meeting we described the purpose of our visit to the office. The BOLSA official briefed us about the responsibility of the office in relation with job creation and stemming irregular migration. Job Creation The office is currently working with both public and private businesses/offices to secure jobs for the youth. Its main responsibility is to register jobless youth in the region and link them with different organizations. The office has limited capacity and it is not able to cover the whole region (100 woredas in the region but BOLSA has offices in only 28 woredas). The office cooperates with TVET agency to cover areas that are out of its reach. After the registration the office tries to create jobs for the youth using the following ways. - Linking the Youth with Jobs – The office receives job opening posts

from different offices and based on the qualifications of the youth it connects the youth with the employing organizations.

- Provide Skill Trainings – Skill trainings are provided to the jobless youth employees based on their interest. These skill trainings are provided in partnership with the TVET office of the region. After receiving the trainings the micro and small enterprise office assists them in setting up their businesses.

- Lobbying with new investments – The office follows up new investments to evaluate if they have kept their promises on job creation. In case the number of jobs created by the investment is lesser than the plan made in the initial proposal, BOLSA has to push the investors to keep their promise creating additional jobs. For the current fiscal year the office is planning to create around 74,000 jobs using this technique.

- The office is currently using a weekly report coming from each zone to follow up jobs created (disaggregated by sector and gender)

Stemming Irregular Migration In regards with stemming irregular migration, the office mainly works on creating awareness. In the past fiscal year, the office was able to reach 8,263,471 people using different methods. BOLSA in particular has used community dialogue reaching 726,129 people. Also in the past fiscal year the office was able to prosecute 114 Illegal migration brokers. Related to that 1.223 people who were trying to migrate illegally were educated and have been returned to their origins. Returnees There are 32.125 returnees in the Amhara region. In partnership with ILO the office has provided Entrepreneurship and Motivational trainings for 3.397 returnees in three round of training in the Eastern part of the region. Out of the 32.125 returnees the office was able to create jobs for 10.328 returnees. Most of the returnees are working on small scale service shops. Data Collected: - Plan of Job Creation Department for the year 2009 EC (Language:

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Amharic) - Performance Report of 2008 EC. - Sample Weekly report on Job creation

5.12.2016 AMHARA FIELD MISSION

Amhara Credit & Saving Institution (ACSI) Ato Agaz

Getahun CEO ACSI

-ACCI is Amhara Region Based organization regulated by National Bank of Ethiopia. For the last 22 years the most vulnerable people are the priorities of the service. There are 450 branch offices and 1.250 satellites branches for the rural areas. - ACCI works in remote areas, on agriculture based activities. Startingfrom 2007, ACCI supports strongly the SMEs. - ACCI provides services for individuals and groups but most of the clients receive the service in group based in order to use “Family Relation” as a means of collateral. - In ACCI service the 20% of saving is required to get the loan. Also the applicants for the loan has to prepare a business plan. In case the applicantis are not able to write or read, ACCI will listen and evaluate their idea. - ACCI has supported returnees working closely with ILO, but there were a lot of challenges as for example the attitude of the returnees, dependency syndrome, use of money for secondary migration etc.. - ACCI gives priority for women, in fact 59% of ACCI’s borrowers are active women, especially the case of WEDP was very successful in the region which has changed the life of many people.

5.12.2016 AMHARA FIELD MISSION

Technical Vocation & Enterprise Development Agency Ato Belay

Zeleke

The Technical and vocational office was setup by merging the TVET office and MSE offices of the region. After the merger the office has created two major divisions focusing on the following activities. Education and Training

This division handles all activities related with TVET education and Training. The office has 81 TVET colleges in the region. Currently there are 129 woredas in the region. The office is planning to open 8 TVET colleges soon.

Small Scale Enterprise Development This division is mainly focused on Job creation for the youth and registers jobless youth in every level – starting from the non-educated up to degree holders. The office has registered 591,693 jobless youth in the current fiscal year out of the planned 884,455 people. The office prioritizes the following sectors as the main job creating sectors.

Manufacturing Construction

a) Building works b) Inputs for buildings works (Sand, Stone, Block) production

Agriculture

a) Fattening b) Poultry c) Bee Keeping d) Milk Production e) Fishing f) Vegetables & Fruits

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Service sector Cleaning service Writing services City beautification Security Service Garage Cleaning service

The office also works with the following regional offices for job creation - Rural Road Development Office - Women and Children Office - Rural Land Administration Offices - Bureau of Labor and Social Affairs - Youth and Sports Office

The following reason has been mentioned as the main challenges faced in job creation - Capital shortage - Shades shortage (Specially in the rural areas) - Materials shortage to provide skill trainings - Output market problem (Leather sector was mentioned as an example)

Data Collected: - Plan of the office for the year 2009 EC (Language: Amharic) Regional Cluster shades data (Language: Amharic)

6.12.2016 AMHARA FIELD MISSION

Amhara Youth & Sport Bureau Process Head Ato Desalegn

Yitayew

Ato Begiziew

Youth and related activities/problems are a cross cutting issue. In Amhara Region Nine (9) offices are working together under a task force. At the top of the task force there is the regional office (Regional Task Force) chaired by the regional President. The task force reaches up to Kebele level. The plan for 2016/17 is to create employment for over 900,000 people in the region out of which 85% are youth. So far full profile of more 450,000 people was collected. Since the office doesn’t have branch offices at the kebele level, it is collecting the data through the kebele administration and agricultural extension workers. In the creation of employment the direction is 80% permanent & 20% temporary in urban and 60% permanent & 40% temporary in rural areas. The Region has approved 800 million birr for the creation of employment. The Offices in the RegionalTask Force are: 1. The President of the Region 2. Head Technique vocation & Enterprise Dev’t Agency 3. Head Youth & Sport Affairs Office 4. Head Bureau of Agriculture & Natural Resources 5. Head Urban Dev’t& Housing Construction Bureau 6. Head Rural Land Administration Bureau 7. Head Amhara Credit and Saving Institution 8. Head Women & Children Affairs Office 9. Head Livestock Resources Office

This task force is also established at zone, wereda and kebele structures of the regional administration. The Challenges are : a) lack of commitment of the leadership to work at its best, b) lack of finance, and c) attitudinal problem of the youth.

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6.12.2016 AMHARA FIELD MISSION

Bureau of Agriculture employment creation Process Expert Ato Masresha

Ato Masresha introduced the office works on rural job creation specifically on farm activities. They work in the following sectors: fattening, aqua culture, animal feed, poultry and dairy. Fruits and Vegetables is also expected to create more jobs, for instance 25-40 fruit seed can produce 70,000 fruits in five years. He also mentioned West Amhara as favorable weather and water resource for horticulture. They are also working in natural resources, based on collecting seeds from tree which can be used as seed for growing trees. Additional activities are also being implemented, for instance 499 million Birr budget has been allocated to build small dams which will create job opportunities for 440 young engineers (88 enterprises). And also he stressed this year 3.6 billion has been requested from the government for job creation. The BOA expert stressed on the importance of farm mechanization, in fact this office is working on farm mechanization in 14 Woreda, but stopped because of the issues of lack of accessories. Now gap assessment has been done and they are planning to re- start. The office has already identified which sectors can create more jobs and in which zone.. Furthermore, the expert mentioned East Amahara for the highest rate of returnees and in fact that area has been chosen by the pilot project of FAO for Ethiopia and Gambia, having as beneficiary target the returnees. FAO is currently working in this region in Kalu Woreda with 174 youngesters. The youngesters have already identified the sectors they want to work on and FAO is supplying the necessary input they need. Regarding agro processing there is nothing currenlty. There was once a project named Agro Big on tomato processing but it is not yet clear the current status. The BOA expert suggestions on reducing immigrants were: - land provision. - facilitating loan. - job creation should not be left to government alone. Parents and families should be also involved by providing the children with loan guarantee and portion from available land.

6.12.2016 AMHARA FIELD MISSION

Meeting with Bahir Dar Politechnique Dean Ato

Chalie

Before the visit of the workshops and successful enterprises, a short meeting was held with the College Dean. During the meeting it was explained by the team the purpose of the project in general and the field mission. Ato Chalie explained people understand better the importance of such colleges; even some are leaving universities to join here. The college has 4 campuses and they train around 72 different skills. The short-term trainings has a range from 7 days to 3 month. They engage the trainers in class and field work equally. They have success story of some enterprises which are even exporting beyond the local market. As a challenge, it was mentioned the need into have often new materials. During the visit, one workshop was visited. The workshop had ample recent machines to train students on machine shop skills.

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6.12.2016 AMHARA FIELD MISSION

MSE engaged in Wood Work & Textile

Two enterprises were visited working on wood work and Textile. Both enterprises visited were exemplary in transforming enterprises from small to large scale and creating job opportunities for many youngsters. The textile enterprise visited has around 340 employees working in the premises and at home. Currently the enterprise is engaged in producing traditional clothes and pays a salary in range of 3000-1000 for the weavers and 20,000 for the designer.

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6.12.2016 AMHARA FIELD MISSION

Women & Children Affairs Bureau Fantaye

Tibebu

- Ms. Fantaye Tibebeu stated that Amhara region is one of the most exposed areas for irregular migration. The level of the problem in different zones and woredas of the region is different. In order to minimize irregular migration, the office had worked on awareness rising in rural and urban areas of the region.

- There is job opportunity creation team in the office that is responsible to prepare action plan in the region. However the people who are migrating are not only the unemployed people, it is even getting worse on the employed group of people.

- There is no gender disaggregated data on the number of irregular migrants.

- Research is not conducted in the specific zones and woredas of the region where more women are migrating illegally.

Ms. Fantaye suggested that much should be done on awareness creation to resolve the issue.

6.12.2016 AMHARA FIELD MISSION

Amhara Development Association

The Amhara Development Association (ADA) is a local NGO operating in Amhara region. It starts working on the issue of employment creation after a large number of illegal migrants were deported from the Kingdom of Saudi Arabia. ADA has allocated 175 mn birr for five years to create employment opportunity for 35,000 youth. The implementation started in mid- 2014. It is working in different sectors from Manufacturing to petty trade. The fund is a revolving fund administered by the cooperatives and unions. They don’t have detailed data because the majority of the projects is at the initial stage & mainly implemented by the weredas autonomously. The project is implemented in 147 weredas and cities.

6.12.2016 AMHARA FIELD MISSION

TRET W/o Maritu

TRET is an endowment fund of the Amhara Region engaged in different big business activities in manufacturing (textile, metals, etc), mechanized agriculture, transportation, Trading, Brewery etc. TRET has a plan to employ more than 50.000 people in the different sectors in the coming 5 years. But for more data they suggested to contact board members at the office in Addis Ababa.

7.12.2016 AMHARA FIELD MISSION

Amhara Chamber of Commerce Ato Assefa

Wereta

Amhara Chamber of Commerce have 250.000 members, out of which 25.000 are manufacturers. Since most members are traders, they have a plan to form clusters and create bigger manufacturing company that can create more jobs. In agro processing only flower factories (around 20) exist. Currently they closely follow up 170 woredas. Regarding textile factories, there are only Bahirdar, Dessie and Combolcha textile factories. The Dessie factory started from small scale production to the current state. Furthermore, Ato Assefa told us that the region has ample resources like Wheat, Sesame, Horticulture, Spice & Cotton etc, but there is no enough investment utilizing this. Although there are around 25,000 manufacturing companies but they are very small to create jobs. So he advised to establish bigger companies that can be attracted by SINCE resources and create more job that can ultimately reduce migration.

13.12.2016 SNNPR FIELD

Bureau of Youth and Sports

The office is the main responsible for job creation in the rural parts of the region through the Rural Job Creation and Promotion Agency, which is

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MISSION

Messeret

Mskelie (Bureau Head)

AtoDeresse

(D/Head)

under this office. As explained by W/ro Messert, the office performs door to door registration to identify unemployed youth in the region. Out of the 5 million of youth in the region, the office has registered 350,000 unemployed in the rural area. The office is also registering the 350,000 unemployed youth in the urban areas. At the moment 85% of them are already registered. This task also includes data segregation by age, gender and most importantly by education level. During the registration the office has also tried to identify the interest of the youth among 5 development targeted sectors (Construction, Manufacturing, Service, Trade and Urban Agriculture). It was also mentioned that in the rural area 16% are working on non-agriculture sectors. Regarding job creation the office plans to create 320,000 jobs in the rural areas and 350,000 in the urban areas. The office works in collaboration with TVET and OMO micro finance. OMO provides loans strictly based on the rule of 20% of savings (which requires the youth to save 20% of the total amount of loan). OMO has also additional revolving funds allocated specifically for youth and women. The office provides also land for production, show rooms and sales shops. Specially in the rural area, land is provided primarly for the youth. In the region, rural and urban job creation offices are led by a steering committee which includes all the offices like trade and industry, TVET, OMO finance, agriculture Bureau etc... It was also mentioned that this structure is present also at zonal level. W/ro Messert also informed us that they have started to work on value chains. For example, the MSE office was used to establish enterprises for working on raising one-day baby chicken but nowday they are establishing enterprises that work also in packing. But working on these value chains needs support. She also added that youths are interested in some specific economic sectors. She mentioned the following geographic areas and their potential for production: West area (kefffa, sheka, benchmaji) is suitable for bee keeping, coffee, and spices. One of the plan in this area is processing and packing honey. They have been working with the youth in the Central Area(Walita, Dawro, Gamogofa, sidama, Gedeo) on one day baby chicken. Since huge land is not available, livestock and fattening is also appropriate for this area. Regarding Agro processing, honey production and butchery is planned in Awassa and Gamogofa woredas. Furthermore she mentioned that they are focusing more attention on the university graduates for two reasons:

They can be better leaders by transferring their knowledge. They can motivate the uneducated youth working on fields.

Regarding returnees, they are giving special attention for those who came back from Saudi. These returnees were mainly from Halaba, Werabe, Seltie, Gurage, Hadiya and Kenbatatenbaro woredas. They are working with returnees by providing training and giving them the chance of getting a loan without the mandatory 20% of saving. The returnees are mostly from urban areas and the number is decreasing. They have special quota for the returnees like motivational incentives for competition etc.

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Documents Collected : 2016/2017 Rural Job Creation Plan 2016/2017 Rural Job Creation Report 2016/2017 Rural Job Creation Zonal Report SNNPR Rural Job Creation Manual

13.12.2016 SNNPR FIELD MISSION

Omo Credit & Saving Institution (OCSI) Ato Shimels

Debelie, Business Development Services Director

OMO Credit and Saving Institution (OCSI) is SNNPR micro credit and saving institution regulated by National Bank of Ethiopia. For the last 18 years the institution has been giving service giving priority to the most vulnerable people. The institution has 15 branch offices and 165 sub branches agents in 3,775 kebeles.

82% of its service users are from the rural areas, mainly employed in agriculture sector. The remaining 18% of the service is provided in urban areas including the MSEs. Currently the total amount for loans disbursed for SMEs in rural and urban areas is 1.2 billion ETB.

The institution especially works with the Rural & Urban Job Creation Agencies of SNNPR on employment creation for the youth. The Regional government has allocated a revolving fund of more than 400million ETB to be used by the rural unemployed people.

OCSI provides the services for individuals and groups. However most of the clients prefers to use group collateral based service, because it will allow them to use “family members” as collateral.

30 % of OCSI clients are women. In addition to that, the institution works with World Bank’s WEDP program which has allocated 36 million ETB to serve female entrepreneurs in the region.

Currently OCSI has 2.3 million active savers & 1.2 million borrowers in the region and the total saving is about 9.1 billion

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ETB. The total withdrawal is about 7.3 billion ETB. The total active loan disbursed is around 1.4 billion ETB. This is

out of the net of saving over withdrawal which is 1.8 billion ETB. OCSI financed 56-57% of the loan disbursed from its savings.

The interest rate used by the institution is 10% & 15% flat and 18% declining.

OCSI used individual agents like the Health and Agricultural Extension Agents to increase its coverage in 3,773 kebeles out of the 4,130 kebeles in the SNNPR region.

13.12.2016 SNNPR FIELD MISSION

Urban Food Security and Job Creation & Development Agency Meeting with

Ato Yishaq Bijamo

The agency is mainly focused on job creation for youth in the urban areas of the region.

The director stated that there is irregular migration in the regional state especially from Gurage & Silte woredas to Arab countries and from Kembatatembaro & Hadiya woredas to South Africa. In order to mitigate the irregular migration, the agency has designed a retention or prevention strategy through job creation in urban and rural areas.

The Agency has prepared an yearly plan and has evaluated its performance every year. Even though its performances are coherent with the yearly plans, the total number of unemployed citizens in the urban area of the region is unsatisfactory. For instance in GTPII of the fiscal year 2015/2016, the plan is to create job opportunity for 300,000 unemployed urban people in the region but there is big gap between the plan and the demand for job. For this reason they evaluated their performance as partially positive.

According to the director, irregular migration is a common phenomenon not only for the unemployed but also for the employed. Usually the irregular migrants pay to the brokers from 90,000 to 100,000 birr with the hope of getting a better life. This is due to society’s desire to become rich in a short period of time. As consequence there is the wrong perception that irregular

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migration is the best way to achieve this goal. The Agency is prioritizing the following sectors based on the

strategy of the government - Manufacturing - Construction - Urban Agriculture - Service - Trade

Manufacturing is the priority sector for the Agency since it can create job opportunity for a big number of people compared to the other sectors..

The leading sectors on creating job opportunity for many people in the region are Construction and Trade.

From the total jobs created by the Agency in the year 2015/2016, the job for women accounted 39.9% and the Agency has planned to increase this percentage to 50% by 2016/2017

Regarding returnees, during the expulsion of large number of illegal migrants from Saudi Arabia, they had priority in getting credit and working premises. Currently they are not getting special treatment. They are treated like any other residence of the region.

Document Collected

Urban Job Creation 2015/16 performance Urban Job Creation 2016/2017 Plan

14.12.2016 SNNPR FIELD MISSION

TVET Agency Head Ato

Atnafu Assfaw

There are 51 TVET colleges and 7 TVET college clusters (Poly Technic TVETs) in the region. 51 TVET Colleges are currently under construction.

Trainings are provided based on the demand of the market and the interest of the trainees, but the priority sector for the TVET Agency is manufacturing. Whereas Garment (Textile) has the largest

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number of short term trainees in relation to the Hawassa Industrial Park.

These institutions work on creating awareness about the difficulties of irregular migration in the exposed areas of the region to minimize migration.

In SNNPR all the migrants are not categorized under the unemployed group. There is also a huge number of irregular migrants from the employed group. Most of the employed tempted to leave the country due to the low wage payment which doesn’t cover their basic needs.

The main challenge for the region is the attitude of the society on migration; in fact migration has become a cultural act. Though many people are losing their brothers and sisters by irregular migration, the society is still cooperative into contribute to cover travel cost for irregular migrants.

The accessibility of TVET for the people in the region is at early stage since TVET is capital intensive. From the total number of grade 10 graduates, only 20% advanced to the preparatory class, the remaining 80% joined the TVET, but currently there are not enough TVET centers in the region to accept all the students

The plan for 2016/17 is to train 69,000 under the regular program and 138,000 under short term training.

Document Collected: - List of TVET Colleges in the region

14.12.2016 SNNPR FIELD MISSION

SNNPR BoLSA Ato Fisha

Beyene Ato Girma

Mulugeta

BOLSA explained us the activities to be undertaken for minimizing irregular migration and supporting the returnees. Irregular Migration The region has identified 5 zones and 1 special woreda as migration hot spot areas. - The youth from Hadiya and Kembata zones mainly migrate to South Africa - The youth from Gurage, Silte and Alaba zones migrate to the Middle East. - Wolayta is included as a hotspot due to the high rate of human trafficking in the zone. Also unemployment rate is high in these areas Although a task force team, led by the regional president office, has been set up in the region but the meetings are not done regularly. The office is using community dialogue (in 450 Kebeles) and peer to peer discussions in high schools (200 High schools) to create awareness. The performances of taks related to decreasing illegal migration and creating awareness on that are used as evaluating criteria for the offices. Due to this, more offices are currently working on decreasing illegal migration. Although some brokers have also been arrested, still a lot of work needs to be done. The office plans to increase its awareness creation methods using media campaigns and increasing community dialogue coverage. The office is currently preparing a manual to create a centralized center to register the jobless youth in the region. Returnees In 2014 there were 6,000 returnees to the region from Saudi Arabia (Around 2,700 of them were from Silte Zone). The office has performed the

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following activities with returnees in partnership with other regional offices like TVET and MSEs. - Reintegration to the community, trough allowing them to finalize their education and rehiring them in their previous government jobs. - Provide trainings, loan and assistance to setup their businesses - Provide Counseling services. Due to capacity limitation currently the office only provides transportation and counseling services for returnees up on their arrival.

Documents Collected Employment patheway 2016/17 plan 2016/2017 Labour Market Data Base & Net orking Capital Budget Returnees Update 2015/2016 Employment Performanace 2014/2015 Human Trafficing Regional Performance Report

14.12.2016 SNNPR FIELD MISSION

Hawassa Polytechnique Ato Million

The college is currently providing training for more than 5000 students in different sectors. Trainings from level 1 up to level 5 are provided. The college uses demand assessment studies to identify the needs of the market in order to adjust the existing training programs. After the establishment of Hawassa Industrial park, a large demand for skilled workers in the garment sector has been created. The college is working closely with private businesses to train skilled workers in this sector. Short term trainings (45 days) are provided to employees selected by the companies. Shortage of machineries is an obstacle for the college into satisfying fully the demand of the companies. They are currently operating with a single textile practice workshop and 3 classrooms for theoretical part of the courses. The college is in the process of expanding the garment workshops to fulfil the demand. Currently a 4 storey building is under construction. There is also a high demand in auto mechanics and construction sectors. KFW (a German Development Bank) is working with the college in supporting Auto Mechanics, Construction and Metal Engineering departments with machineries. KFW also supports them on standardizing the manufacturing sector trainings. Currently the college is not able to find trainees in the wood work sectors due to a low demand. The college has promised to e-mail a document containing the list of trainees from the industrial park companies.

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15.12.2016 SNNPR FIELD MISSION

Bureau of Women & Children W/o Atsede

Ayza, Head

Women & Children Affairs Buereau of SNNPR has established 87,000 Women Development Teams/Groups/ in the region. In total 2.7 million economically active women are members. There are 25-30 women per each team. The main objective of establishing these teams is to facilitate the participation of women in political activities and to assure their economic and social benefits. The women development teams have played a great role in encouraging women to save around 550 million ETB in the region’s micro finance institution (OCSI).

In the rural areas of the region women are dominantly engaged in agriculture and livestock economic activities. In urban areas women are mainly involved in SME with the support of Food Security and Urban Job Creation Agency of the Region.

Women & Children Affairs Bureau of SNNPR has worked on gender mainstreaming in 28 different sector offices of the region.

Irregular migration is very common in Guraghe and Siltie woredas. Muslim & women are the dominant migrants to Arab Countries. Also from Hadiya & Kembata woredas, the boys try to migrate to South Africa.

The region has the highest rate in domestic migration and especially in children migration.

The main problem for the irregular migration is economical problem and individual problems.

10.01.2017 AMHARA FIELD MISSION

North Wello Zonal Offices TVET office, Urban Development and

Representatives of these offices discussed in detail about: Most potential sectors of the zone and challenges of the identified

sectors. Explained all the opportunities and challenges of different sectors in

North Wello zone.

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Housing Construction, Bureau of Trade & Industry and BOLSA.

List of TVET colleges with the total number of students and specific programs of Colleges.

Finally the TVET office provided UNIDO team North Wello Zone Job Creation Plan and Performance report of 2015/2016 and the Job Creation Plan of 2016. In addition UNIDO team received profile and contact of the NGOs working on migration from Finance and Economic Development office of North Wello Zone.

10.01.2017 AMHARA FIELD MISSION

Woldiya University

A General Discussion was held with Professor Yalew (President of the University) and other Top Managements. During the Meeting UNIDO experts explained the purpose of the project and how such universities can help to mitigate the issue of irregular migrations. Professor Yalew pointed: The University works closely with the community. The market of the University itself is a huge potential. They have a plan to setup Agro Industry Park and they are on the

process to acquire the land. Potential job opportunities can be created for 10,000 youngsters A detailed documented plan can be produced in a couple of weeks if

required.

11.01.2017 AMHARA FIELD MISSION

Woldia Polytechnic College

UNIDO team had conducted a meeting with the Deputy Dean of Woldia Polytechnic College Mr. Suleman Yifa. The dean listed the 7 sectors/ departments of the college. a) Textile, Garment, Hotel and Tourism b) Manufacturing and Automotive c) Construction d) Electricity e) Furniture Making f) Information Technology g) Agriculture

Mr. Suleman stated the following points about the college There are more than 6000 graduates Textile and Hotel and Tourism are the most demanding sectors in the

region 30% of the training is in the college and 70% is outside the college Before their graduation the college encourages them to save money

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and then the college will link them with the region’s Micro Finance Institute. Challenges of the college

Shortage of trainers. Shortage of resources and facilities

11.01.2017 AMHARA FIELD MISSION

NGO (PADET) working on Migration & employment creation in North Wello Zone

UNIDO team has met PADET (Professional Alliance for Development in Ethiopia) North Wello Zone program coordinator Mr Abebe Sisay. Mr Abebe has explained to the team that PADeT is a local NGO mainly working on a focus of youth, children and women. Regarding on controlling irregular migration, according to Mr Abebe, PADET is giving awareness creation in the zone. The coordinator provided UNIDO team all the necessary available information related to their projects on migration and reintegration of returnees from Middle East countries in North Wello Zone.

UNIDO team and PADET’s Program Coordinator Mr. Abebe Sisay

11.01.2017 AMHARA FIELD MISSION

South Wollo Zonal Offices Seid

Belayneh, TVET Enterprise Development

Tadesse –

South Wollo Agricultural Office

Moges

Wondella– Rural Land

- As the zone is regarded as one of the migration prone area in the country, the office has been working to decrease illegal migration in the past three years. According to Ato Seid illegal migration has not decreased and he believes that activities performed by the government have not been enough.

- The following challenges has been identified as the main reasons why they are not able to meet the demands

o Limitations on the offices execution potentials o Land Shortage (Mainly in the urban areas) o Investors not starting business in the expected time frames o Finance shortage in SMEs

- The officers has mentioned that the zone has potential for the following sectors

o Agro Processing o Animal Production o Industries

- Most industries in the zone want to invest in Kombolcha. This has

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Administration

Melkamu

Newzer – South Wollo BOLSA

Belege

Gedamu –Urban and Industry Development

Ashenafi –

Trade and Industry Market Development

created shortage of land. An industrial park is under construction in the area.

- In 2006 the zone has received 15000 returnees, but sufficient activities have not been performed in rural job creation. The zone is using a revolving fund to address capital shortage of returnees.

- In the current fiscal year the zone has planned to create 89,000 and 30,000 jobs in the rural and urban areas respectively. Data Collected

- 2015/2016 job creation plan & performance - 2016/2017 job creation plan and six months performance. - TVET Institutions list and total number of students for 2016/2017

academic year. - NGO profile operating in the zone.

11.01.2017 AMHARA FIELD MISSION

Polytechnic TVET college Ato Hussein

Kassa Abegaz – Quality Manager

- The college has 3000 regular and around 1500 evening class students. - The college is the leading TVET College in the region. It is receiving

support of modern heavy duty machineries from the Italian Government.

- There is a high demand of skilled workers in the manufacturing and Textile and Garment sectors but students usually want to take IT Trainings.

- After graduation the college performs follow up of their students through the trainers. The trainers support them in finding jobs and if they setup their own businesses the teachers support them in providing consultancies

- The college usually provides short term training to SMEs. It also provides short term trainings to private industry employees; in this case the companies usually provide the curriculum for the trainings.

- Additional short term trainings are provided based on demand gap analysis.

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11.01.2017 AMHARA FIELD MISSION

Development organization (Local NGO)

The NGO works on prevention of irregular migration mainly through Awareness creation activities through community networks, peer to peer using FM Radio Music & theatre.

- Socio-economic activities mainly through trainings on attitude, entrepreneurship & business skills.

- It has also Income generating activities they give the trainers (youth & women) 6000 br. As a seed many.

- The donor is Freedom Fund Geneva Global is managing the fund and ADO is the implementer.

The project budget is 3.8 mln br. It is a two year pilot project.

12.01.2017 AMHARA FIELD MISSION

Kombolca Polytechnic TVET College

Kombolcha polytechnic is a very well organized polytechnic with many departments. Sample departments like the General Metal work, Automotive and Textile & Garment were visited. It was noticed the polytechnic college has ample machineries for conducting such trainings.

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The management of the college has pointed out they have lack of skilled trainers to provide advanced level trainings. The College is being assisted by German NGO which has supplied them with machineries for the trainings Data collected - Professions/courses delivered - Number of graduates for the year 2015/2016 - Total number of students 2016/2017 - Total number of trainees who attend short term trainings.

12.01.2017 AMHARA FIELD MISSION

Kombolcha Trade & Investment Office

Kombolcha is an Industry centre there are four industry areas allocated by the city administration and one Industrial park under construction by the Federal Government. The experts explained There are 20 private industries which are operational There are 156 private projects which are in pre-implementation phase.

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There is a separate industry for Agro processing and there are 14 industries under the pre implementation phase.

13.01.2017 AMHARA FIELD MISSION

Technique, Vocational and Enterprise Development Agency, Bureau of Labor & Social Affairs, Bureau of Urban Development Housing & Construction And Bureau of Trade Industry & Marketing Development

North Shoa Zone’s Capital Debrebrhan is the last place for our Amhara mission. We have discussed with the officials of the offices issues of :- The potential sectors and sub sectors which have greater opportunities

for the creation of jobs are - Manufacturing(Textile &Garment, Agro-processing ) - Constriction & construction materials) - Urban Agriculture - Service & Trade Job creation plan for the year 2016/2017 in the different sectors.

The type of industries located mainly in the capital of the zone and the

plan of employment creation through private investment. The majority of the industries those operational and not operational are Agro-Processing industries.

The job opportunities created and other activities performed in

relation to the returnees in the zone.

There are nine TVET & one polytechnic Institution. They are applying the cooperative training model/approach.

In this academic year (2016/2017) there are over 45,000 students in the ten TVET collages.

Challenges they faced in all and the specific sectors.

The efforts made to link the unemployed youth & women with the private sector.

Documents Attached 2015/201 Job Creation Plan and performance 2016/2017 Job Creation Plan 2016/2017 Job Creation Report (until December) TVET collages 2015/2016 Performance and 2016/2017 plan.

13.01.2017 AMHARA FIELD MISSION

Debre Berhan Polytechnic TVET College

The Polytechnic has more than 4000 students in the current academic year (2016/17) according the officials of the institution. We have discussed on issues of :-

The total number of regular, Extension students, the total number trainees who get short term trainings especially in cooperation with the TVET Development Agency.

The collage cooperates with the local industries and small & medium scale enterprises for the cooperative training modality.

Machinery and General Metal Fabrication & Assembly is the Department with the highest demand from the students.

The total number of graduates of the previous year and their situation of employment.

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The main challenge for the students to create their own enterprise is shortage of finance.

We have visited the workshops for the Machinery and GMFA and Wood work.