
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.