Sesame Business Network Ethiopia Mekelle, March 21 st 2015 Results group 1 : In-country value addition

Why is incountry value-addition only limited in Ethiopia? What can be done to improve on value- addition activities? What can the government do to promote domestic value addition? Lead questions

... General impression

Lack of awareness on advantages and opportunities of value addition activities Lack of government support : value addition is not encouraged Access to capital is limited: creates investment problem Technological innovation and export involves business risks and there is an information gap Lack of market linkages between value chain actors and lack of understanding of end-consumer market Price indifferences between different quality of sesame Lack of Knowledge sharing of processors, exporters etc. Results Lead question 1 Why is in country value-addition only limited in Ethiopia?

Lack of Skilled man power in sesame processing Lack of Business Orientation of Producers Lack of Quality Sesame seed Lack of Infrastructure (electricity,water supply, Location remoteness of sesame production areas: not attractive to plant the processing units Cont’d

Priority has been given only to Food Security and Sesame Value addition has been neglected Cont’d

Strengthening cooperatives and unions is needed in order for them to be engaged in value addition Strengthening Seed and Extension systems Reduce production costs(: cost efficiency is needed because margins are limited Government should create an enabling environment Integration of value chain activities (Networking) Improve market linkages (by information sharing) to reduce business risks Results Lead question 2 What can be done to improve on value-addition activities?

Establish investment incentives (long term credit, duty free import of machineries ) Build TRUST between Value chain actors Involve and encourage small and medium enterprises in Value adding activities ( Processing) Cont’d

Government should create an enabling environment: – Identification of value addition/business opportunities – Provide finance incentives and training – Support and invest in R&D – Involve embassies to improve market linkages (embassies as entry-point to Ethiopian Sesame market) – Arrange forums, meetings, discussions to facilitate market relations and information sharing Results Lead question 3 What can the government do to promote domestic value addition?

Government should take the initiative in Sesame processing Establishing Sesame Institute at higher level Value addition courses and programs should be given in Universities and colleges Cont’d

Create Conducive policy for Sesame processing. Involve Farmers in policy discussions and policy making. Establishing Sesame Industrial parks. Preparing Quality Standards of Sesame Value Added Products. Major policy action points

Attention should be given to issues and recommendations raised in such discusions and use in Policy making. Cont’d