Category
Integrated Investment Appraisal
Country
Ethiopia
Client
United States Agency for International Development (USAID)/Ethiopia, Somali Regional Government
Industry
Agriculture Livestock Food Processing
TL;DR
This project conducted an economic feasibility study for establishing a livestock processing facility (abattoir) in Ethiopia's Somali Region. It aimed to improve market access and climate resilience for pastoralists, assessing financial viability, economic efficiency, and socio-economic impacts to support USAID/Ethiopia and the Somali Regional Government in promoting private investments.

This project involves the establishment of a livestock processing facility in Faafan village, Somali Region, Ethiopia. The project aims to address market access constraints and climate vulnerability for pastoralist communities and is expected to generate economic and social benefits by improving livestock value chains, increasing household incomes, and creating employment opportunities. The study particularly examined the facility's potential to transform markets for small ruminants while serving as a demonstration model for future private investments in the region.

As part of the evaluation, a comprehensive cost-benefit analysis was conducted in line with international good practices, assessing the project's financial viability, economic efficiency, and distributional impacts. The analysis included detailed market assessments, risk evaluations for private sector co-investment, and impact projections for pastoralist suppliers to ensure robust decision-making support for USAID/Ethiopia and the Somali Regional Government.