1. The status of Livestock Investment in Oromia Region Presented by : Kuma Daba September, 2014 Adama

2. Contents of Presentation 1. Introduction 2. Objectives of Presentation 3. Overview of Investment Performance 4. Major challenges identified in livestock investment 5. Cluster and Potential for Livestock Investment 6. Incentives Available for livestock 7. The way forward/Recommendations

3. 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.

4. 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.

5. 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

6. 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.

7. 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)

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

9. 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%)

10. 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

11. 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

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

19. 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 mechanized farming, Livestock inv’t challenge.doc Livestock inv’t challenge.doc

20. 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

21.  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,

22.  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

23. 5. Cluster and Potential for Livestock Investment Investment cluster for livestock.docx As 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

24. Cluster & potential---- The production of honey and beeswax (Apiculture/ Bee keeping) Ostrich farm Poultry farm Pig nurture/farm Poultry farm

25. 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

26. 7.Recommendations/the way forward Improving productivity of local breeds through cross breeding with productive exotic breeds is important Applying modern fodder production technology Improving the veterinary service at all level (By man power & other facilities) Establishing modern & Efficient livestock marketing system

27. 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,

28. Recomm-------------- Strengthening of Export slaughter houses clustering area Establishing Market linkage & Supply Chain mechanisms,

29. Thank You