Oromia Livestock investment presentation_Ato Kuma Daba

The status of Livestock Investment
in Oromia Region
Presented by : Kuma Daba
September, 2014
Contents of Presentation
Objectives of Presentation
Overview of Investment Performance
Major challenges identified in livestock investment
Cluster and Potential for Livestock Investment
Incentives Available for livestock
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
 To indicate some incentives available for livestock private
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 = 2,983
 Commercial =2,920
 Hotel and Tourism= 1,718
 Agriculture= 1,325
 Education= 412
 Health =2001
 Real estate=85
 Others=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 agroindustries 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=14,165
 Actual= 3,055 jobs
From Total Livestock investment projects
 Owned by domestic Investors=409
 Owned by foreign= 8
 Owned by Diaspora= 8
4. Major Challenges identified
• Low
Shortage of Animal feed(Natural & Farmed Fodder & Concentrated
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
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
 Lack of modern data management system at all level
 Lack of designing feasible investment projects,
 Not
performing their activities as per the land agreement
 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
 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.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
 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
 Ostrich farm
 Poultry farm
 Pig nurture/farm
 Poultry 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
 Applying modern fodder production technology
 Improving the veterinary service at all level (By man power & other
 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
 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
Thank You