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Socio-Economic and Value Chain Assessment of Selected Areas of Ethiopia

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Socio-Economic and Value Chain Assessment of Selected Areas of Ethiopia Programme funded by Embassy of Italy the European Union SINCE Stemming Irregular Migration in Northern and Central Ethiopia SOCIO-ECONOMIC AND VALUE CHAIN ASSESSMENT OF SELECTED AREAS OF ETHIOPIA INCEPTION PHASE REPORT This report was produced within the framework of the programme SINCE “Stemming Irregular Migration in Northern and Central Ethiopia”, funded by the European Union under the European Union Emergency Trust Fund for Africa. The programme is implemented in Ethiopia by the Embassy of Italy in Addis Ababa sided by the Italian Agency for Development Cooperation Report Authors ILO – International Labour Organization UNIDO – United Nations Industrial Development Organization For further information on the Embassy of Italy in Addis Ababa and on the Italian Agency for Development Cooperation in Ethiopia, please visit: www.ambaddisabeba.esteri.it www.itacaddis.it For further information on the European Union, its activities in Ethiopia and the European Union Emergency Trust fund for Africa, please visit: www.ec.europa.eu www.eeas.europa.eu/delegations/ethiopia www.ec.europa.eu/europeaid/regions/africa/eu-emergency-trust-fund-africa_en Disclaimer: This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the Embassy of Italy in Addis Ababa and can in no way be taken to reflect the views of the European Union June 2017 © Embassy of Italy in Addis Ababa Table of Contents ACKNOWLEDGMENTS ......................................................................................................................... 1 LIST OF ACRONYMS ............................................................................................................................ 2 EXECUTIVE SUMMARY ........................................................................................................................ 6 PART I - Introduction ................................................................................................................ 11 1. Background ............................................................................................................................... 12 2. SINCE Project Overview ............................................................................................................. 14 2.1 Project Objectives ........................................................................................................................ 14 2.2 Inception Phase ............................................................................................................................ 14 3. Role of UNIDO and ILO .............................................................................................................. 15 4. Structure of the Joint Inception Phase Report ............................................................................ 17 5. Methodology ............................................................................................................................ 17 5.1 Background of the Methodology ................................................................................................. 17 5.2 Selection of the Study Area of SEA .............................................................................................. 18 5.3 Techniques of data collection and sample size ........................................................................... 19 5.4 Method of Data Collection and Analysis for SEA ......................................................................... 20 5.5 Method of Data Collection and Analysis for the Value Chain Assessment .................................. 21 5.6 Identification of priority sectors and sub-sectors of VCA ............................................................ 21 5.6.1 Identification of selection criteria of VCA ............................................................................................... 22 5.6.2 Long-listing of industrial sectors ............................................................................................................. 23 5.6.3 Short listing of industrial sectors ............................................................................................................ 23 5.6.4 Description and Analysis of the value chains within the selected sectors of VCA .................................. 23 5.6.5 Selection of value chains or segments of value chain for potential intervention .................................. 23 PART II - Abstracts: Socio-Economic Assessment ....................................................................... 24 1. Abstract of the Socio Economic situation ................................................................................... 25 2. Demography and Social Trends .................................................................................................. 26 2.1 Demographic ................................................................................................................................ 26 2.2 Education ..................................................................................................................................... 27 2.2.1 Elementary and secondary education .................................................................................................... 27 2.2.2 Technical and Vocational Education and Training (TVET) ....................................................................... 28 2.2.3 Higher education .................................................................................................................................... 29 2.2.4 Challenges of the education system ....................................................................................................... 30 2.3 Health ........................................................................................................................................... 30 3. Growth prospects of the key sectors of the Economy ................................................................. 30 4. Labour Market .......................................................................................................................... 31 4.1 Assessment of potential market at the local level ....................................................................... 31 4.2 Policies and Institutional Framework for Labour Market and Employment creation ................. 34 5. Migration Dynamics in Ethiopia ................................................................................................. 34 5.1 Trends of Migration ..................................................................................................................... 34 5.2 Characteristics of Migration ......................................................................................................... 35 5.3 Socio-Economic Impact of migration on families ........................................................................ 36 5.4 Push and Pull factors .................................................................................................................... 36 5.5 Migration Governance Policies and institutional Frameworks .................................................... 37 3 6. Potential challenges: the complex relation between migration and employment creation ........... 37 PART III - ABSTRACTS: THEMATIC SECTOR REVIEW .................................................................... 40 1. Textile and Garment Value Chain Abstracts ................................................................................ 41 2. Leather Value Chain Abstracts ................................................................................................... 42 3. Agri-Business and Agro-Value Chain Abstracts ............................................................................ 42 4. Metal Work Sector Analysis Abstracts ........................................................................................ 43 5. Construction Sector Analysis Abstracts ....................................................................................... 44 PART IV – MAPPING OF RELEVANT EXISTING PROGRAMMES IN SINCE FOCUS AREAS ................ 46 1. Foreword .................................................................................................................................. 47 2. Addis Ababa .............................................................................................................................. 48 3. Tigray ........................................................................................................................................ 49 4. Amhara ..................................................................................................................................... 50 5. Oromia ...................................................................................................................................... 53 6. SNNPR ...................................................................................................................................... 54 PART V - Challenges on Migration, Labour Market and Value Chain (Resume) ........................ 56 1. Challenges on Migration in the Assessment Areas ...................................................................... 57 2. Challenges of Labour Market in the Assessment Areas ............................................................... 57 3. Challenges of Value Chains in the Assessment Areas .................................................................. 59 PART VI - FINDINGS AND RECOMMENDATIONS
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