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
• 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
• 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
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