1 19 Sep 2013 Creating Alternative Livelihood Options through Aloe Value Addition for Pastoralists and Agro-pastoralists in Borena Zone, Oromia National Regional State

2 Overall Objectives:- To improve the livelihood of smallholder pastoralist and agro pastoralists in two districts of Borena Zone, Oromia National Regional State. Purpose:- Increased income of 200 pastoralist and agro-pastoralist HH’s by 50% in Yabello and Arero districts of Borena Zone through Aloe value chain development by the end of August 2014 Beneficiaries :- 200 HH’s (80% F) Budget :- Euro 108, (ICCO- 99, CAE 9, )

Expected results (ER) and Outputs ER 1 - Increased production/ domestication of Aloe species Output 1.1:- Local species of Aloe domesticated on 4ha of land Key Indicators:- Area of land (ha) cultivated by Aloe plant Means of Verifications:-Producer groups records, progress reports, observation 3

ER 2 - Increased capacity of pastoralists and agro pastoralists to process aloe products Output 2.1: Four aloe soap making groups established and supported Output 2.2: Three product recipes developed and ready of production (soap, body and hand lotions) Key indicators -Number of people trained in Aloe processing -Number of recipes developed -Number of producers groups established Means of verification -Training records, progress reports, document review, consultant's report, enterprises records, progress reports and registration certificate 4

ER 3 - Improved market linkage for Aloe products Output 3.1:One market assessment on aloe products Output 3.2:Two local promotional markets supported Key indicators -Number of promotional activities conducted -Level of market outlet of the products -Number of market Assessment conducted Means of verification -Progress reports, event reports, Household survey, Project M&E records and Assessment report 5

ER 4 - Increased access to credit services Output 4.1:Eight women SHG established and supported Output 4.2:Aloe soap making groups linked with MFI’s Key indicators -Number of SHG formed and supported -Number of MFI providing credit to Aloe processing enterprises Means of Verification -SHG records and progress reports 6

Main activities  Domestication of Local species of Aloe  Establish and support four aloe soap making groups  Develop and make ready three product recipes for production of soap, body and hand lotions  Establish and support eight women Self Help Groups  Conduct market assessment on aloe products  Link aloe soap making groups with MFI’s  Support two local promotional markets 7

The innovation:  Which innovation do you like to scale up? Making Aloe Vera soap  What are the technical, social and environmental aspects? Technical aspects :- Making Aloe Vera soap hand and body lotion (not entirely new; some others do this as well) Social:- Pastoralist women get organized for an economic activity Environmental aspects:-New plantings of Aloe Vera reduce erosion  What is the economic impact on households, cooperatives, SME and value chains? Household level -Cooperative members get a payment for the sale of products according to their participation/involvement – which increases income at HH level -Percentage of Income obtained at HH level will be saved with SHG for further investment 8

Cooperative level -Capital for the cooperative increases from the sale of products -Women coop will be linked to MFI based on a BP to scale up the production -SHG will lead to IGA Value Chain level -Increased bargaining power -Better value for the resources (Aloe resource)  How and under which condition could this innovation be scaled up further? -Based on the market assessment which will come up with optimal scale of production and maximum market size different cooperatives will be organised and engaged in the business. 9

-If the cooperatives are found profitable as envisaged -Communities are interested to be engaged in the business sector -Resources are available  What could be the role of the Bio Enterprise in Yabello that is marketing Aloe soap already? Cooperatives can learn from the successes and challenges of the Enterprise, be member of the enterprise and benefit from training and any other technical supports 10

Learning:  What do you want to learn during the project? -How to make a good quality soap, hand and body lotions? -Changes to the role of women in the community (involvement of women’s in production process) -Benefits of domesticating Aloe resources (saved time spent in harvesting of Aloe resources, reducing conflict, soil and water conservation)  What will you measure, monitor and calculate in order to learn about those things that you want to know. -Develop appropriate recipe for the products (with all its measurements for the mix) -Time spent by women in other house chores versus time spent on production of Aloe -Times saved from traveling distance to collect aloe resources 11

Many thanks 12