The status of Livestock Investment in Oromia Region

Presented by : Kuma Daba

September, 2014Adama

Contents of Presentation 1.Introduction2.Objectives of Presentation 3.Overview of Investment Performance4. Major challenges identified in livestock

investment5.Cluster and Potential for Livestock Investment6.Incentives Available for livestock 7.The way forward/Recommendations

1. Introduction Private sector in free market is recognized as

the engine of economic growth. It contributes to a sustainable economic

growth, creation of ample jobs, development and transfer of new technologies and reduction of poverty.

Public sector need to provide only those goods and services that market failures are believed to be common.

Introd------------ After,1983 E.C, role of private sector in country’s economic

development was given due attention.Financial sector reforms, streamlining taxes,

liberalizing the labor market, and Investment code enacted to ensure a better

involvement private sector.Oromia regional government has also made various efforts to

encourage the growth of sector in the region.

2. Objectives of Presentation To present the overall performance of approved livestock

private investment in region, To explain the investment opportunities available in the

region,To indicate some incentives available for livestock private

investment

3. Performance • As the region gifted with huge natural resources

favorable for all types economic activities, private investments approved have been increasing from time to time.

• Since 1984 E.C , 9,662 private investments were approved in the region

• Share of projects domestic=9,108;Foreign=308;Diaspora=225 and projects owned by joint venture account for 21

• Planned capital of these approved projects is about 142.1 billion Birr

• About 73.3 billion Birr was actually invested.

Perf-------------

43.3% of the projects have started operation and provision of services

Total jobs created by operational projects account for 304,857 of which 119,459 is permanent and the remaining 185, 399 is temporary

Projects have been approved in all zonal and urban administration of the region

But, concentrated around finfinne(Addis Ababa)

Perf--------With regard to sectoral distribution Manufacturing = 2,983Commercial =2,920Hotel and Tourism= 1,718Agriculture= 1,325Education= 412Health =2001Real estate=85Others=18

Perf------• Livestock production/resource is the dominant and important sub-sector in national economy.

• According to the 2012/2013 CSA data on livestock population; there are 53.99 million heads cattle, 25.5 million of sheep; 24.06 million of goat; 915,518 camel; 50, 38 million of poultry; 9.01million of equines species in Ethiopia.

• From this livestock population, Oromia regional state shares 44 % of the national livestock population(CSA, 2013).

• As indicated above, Agriculture has significant share in private investment approved in the region (13.71%).

• Livestock investment as one of agricultural sub sector has significant share(425/1325=32.08%)

Perf---------Of Mfg sector, the number of industries based on

livestock products( Agro- industry)=222 projects (7.45%)

Include milk processing, slaughtering, meat processing, honey processing, pig farm and meat processing, poultry and processing , fish farm and processing, etc

Major areas identified for these established agro-industries include :Modjo & its surrounding, Metehara & its surrounding, Bishoftu& its surrounding and Awash Melkasa Town & its surrounding

Perf------• From Agricultural projects the number of

livestock is account for 425(425/1325=32.08%)• These livestock investment Include cattle

fattening, pig farm, dairy farm, sheep and goats fattening ostrich and rabbit farm, poultry farm, fishing , bee keeping etc

• Operational projects= 235(55.3%)• The rest are under-construction and pre-

implementation. • Total land approved for these projects 2408.5

hectare• Planned capital=1.4 billion Birr• Actually invested= 1.08 billion Birr

Perf-------Planned jobs=14,165Actual= 3,055 jobs From Total Livestock investment projectsOwned by domestic Investors=409Owned by foreign= 8Owned by Diaspora= 8

4. Major Challenges identified • Low productivity of Local breeds interms of

Meat,Milk,Eggs,hide,skin,fur,etc• Shortage of Animal feed(Natural & Farmed Fodder

& Concentrated feed)• Prevalence of diseases & Unavailability of

adequate Modern veterinary services at all levels• Inadequacy of the Modern livestock handling

system/technology• Utilizing Cattle mainly for traction power instead

of transforming our agriculture to mechanizedfarming,

• Livestock inv’t challenge.doc

Other Challenges Lack of preparing investment land prior to land

request with the necessary basic infrastructure facilities

Weak harmonization & commitment level of some government offices in facilitating investment related services,

Lack of modern data management system at all level

Lack of designing feasible investment projects, Not performing their activities as per the land agreement

signed,Not managing their projects by qualified manpower, Not providing clear and reliable information of their

investment projects due to lack of interest and problems of data management,

Lack of operating their projects in modern and scientific ways,

Lack of linkage across the supply chain and market linkage. Holding vast land and staying for long period of time with

out any development

5. Cluster and Potential for Livestock Investment

Investment cluster for livestock.docxAs the region has significant livestock population

at national level, investment opportunities in this sub sector is also found to be significant.

Some of untapped opportunities in livestock investment include

opportunities exist for investments in rearing, breeding and fattening of livestock

Fresh water Fishery development and in the constructed of Artificial bond

Cluster & potential----The production of honey and beeswax

(Apiculture/ Bee keeping) Ostrich farmPoultry farm Pig nurture/farmPoultry farm

6. Incentives Livestock development for export, which include

honey , wax and Zibad, animalfeedinputs(premix is one of the sector which has been given due attention by the government during the first GTP

Like any other investment projects, this sub sector is also subject to incentive packages available for the importation of some goods free of custom duty, in fact depends on the size of investment

Incentives.doc

7.Recommendations/the way forward Improving productivity of local breeds through

cross breeding with productive exotic breeds is important

A pplying modern fodder production technology Improving the veterinary service at all level (By

man power & other facilities) Establishing modern & Efficient livestock

marketing system

Recomm------Preparing investment land in advance of

approving investment projects for all investment including the livestock sector .

Strengthening Support and follow-up services so as to improve the performance of livestock investment in the region.

Preparing of investment land for livestock rearing & fattening investment projects in potential areas , such as , Borena,Arsi,West Hararghe,Bale ,Horro Guduru Wollega & Guji Zones,

Recomm--------------Strengthening of Export slaughter houses

clustering area Establishing Market linkage & Supply Chain

mechanisms,

Thank You