Strengthening the edible oilseeds value chain in Amhara
Problems
The edible oil sector in Ethiopia, particularly in Amhara, is struggling to meet domestic demand. Oil processors lack good-quality inputs, resulting in underutilised capacity. Consequently, there is a significant reliance on imported edible oil, placing a strain on already limited foreign currency reserves. Concurrently, youth unemployment in the region is on the rise. Resilience was commissioned by the Amhara President’s Delivery Unit and Big Win Philanthropy to conduct a value-chain study and explore potential investments to address these challenges.
Solutions
A comprehensive situational analysis was conducted, comprising desk research, key stakeholder interviews, focus group discussions and field visits. Based on the analysis, three key value chains – sesame, sunflower and noug (niger seed) – were selected for thorough investigation, as they represent the primary oilseed crops in Amhara region and offer the greatest potential impact. Identifying challenges and bottlenecks within these value chains led to the identification of 10 potential business opportunities. From these, the client selected three that were the most promising and impactful: (1) irrigation service provision, (2) mechanisation service provision, and (3) enhancing oilseed research capacity. Each opportunity was operationalised by developing business and financial models. Additionally, suggestions were made to leverage required investments through potential partnerships and funding sources.
Impact
Following a validation session, the Amhara President’s Delivery Unit embraced the study’s findings. The regional government will promote the three identified business cases to attract new investors.
Amhara, Ethiopië
Team members
Timeframe
2022–2023
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