Sesame Business Network Ethiopia

Mekelle, March 21st 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 1Why 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 2What 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 3What 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