Towards a resilience and Diverse Economy(TRADE)project in Borana Zone, Oromiya Region Ethiopia ranks 157 in the 2010 Human Development Index. Pastoralism is an important livelihood strategy in Ethiopia with pastoralists representing 13% of the population, occupying 65% of the land and contributing 15% of GDP. However, pastoralist communities are particularly vulnerable to food insecurity due to environmental factors, market and finance limitations, and lack of organisation, low bargaining power and a policy environment that often neglects the specific needs and potential contribution of pastoralist communities. The JEP January 2010 livelihoods baseline study revealed only 8% of male-headed households (MHH) and 1% of female headed households (FHH) in Borana own sufficient animals for sustainable livelihoods, yet livestock is the primary income source of 65% of MHH and 39% FHH. Moreover 20% MHH and 23% of FHH have no second source of income, and more than half have no third source. The average value of assets held by MHH is £55, and FHH £36, highlighting vulnerability generally, but particularly for FHH. Gender-related development indicators continue to show the high impact of gender inequalities in literacy rates, participation in economic and political life and access to income. This means unequal access to the assets needed to sustain or develop livelihoods. Marketing is constrained by poor infrastructure, compounded by lack of dissemination of market information and financing opportunities. Poor pastoralists lack inputs to diversify and add value to their products which puts them at a disadvantage in a competitive market. Lack of business skills further limits the capacity of poor pastoralists to participate in markets to their full potential. The government seeks to support poor pastoralists in livelihoods development and income generation through the cooperatives approach, but the ability of the Cooperative Promotion Offices (CPO) at district level to effectively support individual cooperatives is limited by lack of logistical capacity and high staff turnover. 

The key target group are the members of the saving and credit groups (SACCOs), the members of the processing and marketing cooperatives, and small scale traders and entrepreneurs. There is a strong focus on SACCOs as these have lower entry levels and high female membership.
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The TRADE in Borana project is a consortium project to be implemented by AFD, SOS Sahel and GPDI. It is focused on diversifying and increasing the livelihood options of poor pastoralist communities. AFD is working with cooperatives in Borana Zone to develop them as credible business entities that enhance the local economy and enable their members to gain skills and networks for successful marketing and income generation. AFD’s expertise in establishing and capacitating SACCOs is well recognised in Borana, and they bring extensive experience, aiming for a fivefold increase in membership during the project life and increased organisational capacity to provide credit and support services to their members. AFD will also provide Alternative Basic Education (ABE) which provides essential skills to cooperative members and individuals seeking to develop their small scale businesses.

The other partners to the project have complementary activities in different districts of Borana. GPDI will focus on building the capacity of cooperatives to generate income from livestock and will contribute to the work with local traders and businesses. GPDI will also bring specific expertise on animal fattening as a means of adding value to livestock assets and generating increased income from marketing. This will have strong focus on research and allowing best practice to be expanded. They will also work on providing credit through SACCOs. GPDI’s knowledge and understanding of the Borana Gada and traditional livestock management and marketing systems will add particular value to project activities targeting the livestock sector. SOS Sahel has extensive experience in promoting the value chain approach alongside sustainable natural resource management and offers expertise and leadership in participatory development processes at community level. SOS Sahel will lead on the development of a zone-level Union and Bio-Enterprise Centre to link producers and buyers in a manner that allows increasing and sustainable profits for the producer. The BEC will also provide support with product processing, packaging and labelling. SOS Sahel will provide support services and training for cooperatives processing and marketing non-timber forest products in Borana.