Ethiopia – Livelihood Enhancement for Pastoralists and Agro-Pastoralists (LEAP)

Developing Cooperatives, Increasing Market Access

For Ethiopian pastoralists, maintaining a delicate balance with nature is vital to their livelihoods. Historically, however, pastoralists have been neglected and marginalized by indigenous ruling powers in Ethiopia, threatening that balance and increasing their vulnerability. Regional and national boundaries curtailed traditional migration patterns, and drought and war resulted in the displacement of human populations and a rise in conflict over resources. To address these issues, ACDI/VOCA, in partnership with Save the Children and CARE, launched a market access and cooperative development program as a part of USAID’s Livelihood Enhancement for Pastoralists and Agro-Pastoralists (LEAP) program.

The LEAP program, formerly called the Southern Tier Initiative–LEAP, expanded income-generation opportunities for pastoralists and agropastoralists by increasing the capacity of cooperatives and linking pastoralists to higher-value markets through the introduction and revitalization of livestock marketing cooperatives. Through this program, ACDI/VOCA achieved the following impressive results:

• restructured 53 existing cooperatives and organized 16 new cooperatives for livestock marketing and linked them to livestock traders and abattoirs
• organized 10 cooperatives of community-based animal health workers, who benefited from the economies of scale offered by cooperatives in order to purchase their veterinary drugs in bulk
• created 26 rural saving and credit cooperatives (SCCs) with a membership of 1,832 (1,116 of whom are women), providing a safe-savings mechanism outside of livestock ownership and thereby serving as an incentive to sell more livestock to start new economic activities in order to diversify their incomes and livelihood—a key means to achieve food security
• enabled cooperatives to sell 125,707 sheep, goats and cattle valued at $1,354,440 to high-value markets (abattoirs and exporters)
• organized 10 community animal-health workers’ cooperatives with a membership of 236 to ensure the supply of drugs to remote areas where no veterinary pharmacies exist
• restructured marketing groups and assistance to multipurpose cooperatives, enabling members to obtain higher prices for salt, natural gum and incense, thereby increasing their incomes and improving their livelihoods

Since 1994 ACDI/VOCA has worked with Ethiopian agricultural and livestock producers to strengthen local markets, form marketing cooperatives, provide banking services, and build the capacity of processors, traders and service providers with the ultimate goal of raising the incomes of smallholder producers. Strengthening and expanding existing market systems while building the capacity of smallholder producers to operate within them leads to sustainable economic development. Through the five-year LEAP program, ACDI/VOCA increased market access to pastoralists in the Afder and Liben Zones of Somali and the Borena Zone of Oromia.

LEAP provided increased pastoralists’ access to markets through the training of cooperative members and employees and pastoralists themselves. They were encouraged to develop relationships with rural financial service providers and expand income-generating activities. ACDI/VOCA focused on building the institutional capacity of cooperative promotion bureaus to develop and support cooperative organizations. Volunteers evaluated and restructured existing pastoralist organizations to bring them in line with regulations.

LEAP also organized new marketing associations and cooperatives to provide members with inputs, consumer goods and services. Additionally, cooperative members and CPO staff conducted an on-site study of the Kenyan Marsabit traders association and other highland cooperatives. This experience enhanced the organizational development of Ethiopian associations, and also gave traders on both sides of the border an opportunity to exchange information while strengthening local market channels.

ACDI/VOCA’s LEAP program trained Ethiopians in many aspects of cooperative development, such as co-op organization and management, rural finance and business skill development. The trained community members and professional staff managing the cooperatives ensure greater prosperity for Ethiopian pastoralists through effective linkages to wider markets and expanded trade opportunities.